Peter Drucker Quotes

The large industrial enterprise is... the representative institution of an industrial society. It determines the individual's view of his society.

We still think and talk of the basic problems of an industrial society as problems that can be solved by changing the "system," that is the superstructure of political organization. Yet the real problems lie within the [industrial] enterprise. On the contrary, it is the solution of the problems of the enterprise that will shape the system under which we live.

We need in this modern world... an incredible number of very highly trained technicians and professional men... But nothing will be gained unless [they] are also educated as citizens... to know about the ends, the beliefs, the purposes, to... which their craft and skill is to contribute... about the basic issues which... every generation of free men has had to decide... [I]t is the liberal arts... that is our lighthouse in the dark and uncharted waters of the postwar world.

It is this country today which has to prove—to a skeptical world and in constant competition—that it is possible to found a strong and stable modern industrial nation on the concept of citizenship in a free society. Hence the central task in this country, the task with the attainment of which we will stand or fall, is education.

Today we know that a free society is not the product of nature, but of man; that it is not self-maintaining and self-winding, but demands the vigilant and constant support of responsible citizens... freedom is not inevitable and easy... but the product of a long, hard struggle of man's reason and man's faith that has to be fought over and won again by every generation.

[T]he nineteenth century was under the illusion that citizenship can take care of itself. It thought that a free society was "natural" and... would maintain itself by its own momentum. ..."[A]utomatic progress" would preserve liberty. ...[T]hese beliefs were false... they were destructive. They are not... the source and origin of Hitlerism, but they greatly facilitated its rise.

[W]e have been forced to put a major emphasis on the acquisition of technical knowledge.

[I]n a free society each individual has a responsibility towards the beliefs of his society—a responsibility on which all the rights and duties of citizenship are founded.

It is not enough for the economist in a free society to be a good economic craftsman; he must also think and act as a citizen.

[A] totalitarian country... has a much greater freedom of political action and can use whatever policies seem expedient regardless of their moral or philosophical implications. ...[T]here is nothing weaker than a free society which no longer believes strongly enough in the principles on which it is founded to base a living faith on them, but still believes strongly enough in them to be unable to act contrary to them; for such a society will be paralyzed. ...But ...nothing is stronger than a free society which is conscious of its beliefs and vigorous in its adherence to them. For such a society possesses a moral strength and dignity and inspires a loyalty among its members which are invincible.

To eliminate depressions we must distribute capital investment... to eliminate the collapse of producer goods during the slack years... through a taxation policy... funds... should be spread... by means of a fiscal policy which rewards the accumulation of capital funds to be used for employment-creating investments in slack years. ...At the same time we should be able to organize for a steady expansion of our economic activity. One way of doing this would be to organize systematically the satisfaction of such major unfulfilled needs as housing. ...The only thing we lack today is the organization necessary for the mass production and mass assembly of houses, which could easily by supplied either by large corporation or by local cooperatives. ...[T]he problem of full employment is primarily one of organizing the resources which we so amply possess. ...[I]t requires that rarest of all qualities, political imagination ...

[N]othing is easier to attain than full employment... All we would have to do, for instance, would be to continue a war-economy at no more, perhaps, than half its present level. Or we could adopt some sort of state socialism, under which the surplus resources... would be employed on non-economic projects, it makes... little difference what twentieth century equivalent of the Egyptian pyramids... so long as we do not use the surplus labor to produce ordinary economic goods. ...But we refuse to accept the kind of society to which either [a permanent war economy or state socialism] would lead. We demand more than a stable society, we demand a good society. Specifically, we demand of our economic system... that it produce goods... that add to the wealth... and... that these goods be produced... under... the free enterprise system.

[C]hronic unemployment is a denial of citizenship, a destruction of the rationality of our society, and a sign that we are socially incapable of mastering our economic tools. Reasonably full employment... is... a prerequisite to internal stability. ...[F]ailure to stabilize our economy would be the most severe threat to international order.

[C]ollaboration between... divergent systems is possible... only as long as both are stable. ...International security is ...based upon the internal political and social security of each of the Great Powers.

[W]e are all learning fast that we have to respect each other's basic beliefs and institutions, however much we must dislike them. If there is one lesson to this war, it is that the attempt to impose one's own system on the world, such as was made by both the Germans and the Japanese, must end not only in total world-wide conflict, but in the defeat and destruction of the country that makes the attempt.