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Example text
Likewise, the enlargement of the powers of the national government were conducive to business interests in a number of ways. First of all, larger business firms can more easily spread the fixed costs of government regulation over their larger outputs than can smaller firms, so the larger firms gain a comparative economic advantage that can be utilized in their pricing practices. '~ Thus, it could be maintained, the adversarial relationship that might superficially appear to exist between the business and political systems cloaks an underlying symbiosis that permits each sector to expand the range of its interests in mutually supportive ways.
An orderly system can survive only by remaining resilient within a constantly changing environment, only by a willingness to take the risks of changing accepted practices when the consequences of doing so are uncertain, and only by understanding that stability and equilibrium conditions are incompatible with creative processes. If, as Schumpeter argues, firms tend to get transformed from ownercontrolled to manager-controlled enterprises, and if manager-controlled organizations are more cautious and conservatively disposed in their decision-making, then such tendencies would suggest the presence of countervailing pressures to the commonly feared accumulation of organizational size and power.
When such fluctuations do occur, a healthy system must be prepared to respond in ways that reduce-rather than accelerate-entropy, The distinction between static and dynamical systems can be seen in the analysis of marketplace pricing. ) The continuing adjustments in supply andlor demand that accompany such price changes-and tend to keep prices fluctuating around an equilibrium price level-is an example of the disequilibrium operating within dynamical systems. Once again, the adjustments may or may not be dramatic in nature; compare, for instance, the 1929 collapse of the stock market to the more common drops in the Dow Jones index.