The belief that order must be intentionally generated and imposed upon society by institutional authorities continues to prevail. This centrally-dire… - Butler D. Shaffer

Almost all of us have been raised in the belief that political institutions are necessary to provide order and harmony in society. In fact, we have been taught that the political State is synonymous with society itself; that the political State energizes and organizes society, creates and protects human rights, and make economic and social life possible.

Firms with established market positions wanted to reduce the impact of such competition and employed voluntary methods (such as mergers, pooling, trade association ‘codes of ethics,’ and other agreements) in efforts to stabilize competitive relationships. When such voluntary means failed due to lack of effective enforcement, influential corporate leaders, having found a condition of unrestrained competition and decision-making unacceptable to their interests, helped promote the enactment of legal restraints upon trade practices.

In such a volatile climate, change became one of the few constants upon which businessmen could rely. Economic survival often depended upon innovative resiliency; firms with higher unit costs and prices had to either be- come more efficient or drop out of the race. Instability and turnover were continuing threats with which firms had to contend. The severity of the competitive struggle was best reflected in the automobile industry: of the 181 firms manufacturing cars at some time during the years 1903 to 1926, 83 remained in business as of 1922, while 20 managed to survive through 1938.