Ralph Waldo Emerson's Thoughts on Business

In 1860 Ralph Waldo Emerson published the essay entitled "The Conduct of Life." While reminiscing on wealth he penned the phrase "matter pays her debt." As cryptic as this statement may seem it carries an important entrepreneurial message about operating within the limits of nature. In order to comprehend Emerson's message we must break the phrase down into its minute elements.

"Matter" is the subject of the phrase and in this sense refers specifically to Mother Nature; which is evident by the use of the pronoun "her". The verb "pays", in this context, means to give recompense for something. And the object of the phrase "debt" is defined as something owed or that one is bound to pay. Theologically speaking, a debt also refers to an offense, sin, or trespass requiring reparation.

By combining these definitions and taking into consideration Emerson's Transcendentalist belief that mankind has a direct relationship with both God and Nature, we can deduce that his message is one of reciprocity. Men will reap what they sow in their dealings during their pursuit of wealth. This message is best explained by Emerson's theory of "Impera Parendo", or knowing your limits.

In Emerson's earlier essay entitled "Nature" he argues that "every property of matter is a school for the understanding." He elaborates in "The Conduct of Life" by saying:

"Nature has her own best mode of doing each thing, and she has somewhere told it plainly, if we will keep our eyes and ears open. If not, she will not be slow in undeceiving us, when we prefer our way to hers."

In the poem preceding "Wealth", Emerson speaks of the advent of business and the spread of commercialization in society. He admonishes, "though light-headed man forget" they must stay within the limits of nature's law.

An example of this concept comes from Faust, in which the protagonist sets out to "push back the lordly ocean from the shore." This grand scale endeavor is unrealistic and conflicts with the laws of nature. Despite devoting his life to his dream it can never come to fruition because as Emerson puts it:

"The rule is not to dictate, nor to insist on carrying out each of your schemes by ignorant willfulness, but to learn practically the secret spoken from all nature, that things themselves refuse to be mismanaged, and will show to the watchful their own law."

Faust doesn't understand his limits or know when to stop. Even after being admonished by the scepter of Worry he still continues to drive on unsuccessfully until he dies.

A modern day example of this idea comes from the Salt Lake based company LoveSac. In February of 2006 owner and founder Shawn Nelson was forced to file for chapter eleven bankruptcy. Reports indicate the company borrowed large sums of money to expand global business without having adequate assets. Because LoveSac tried to force expansion too quickly they are now paying the price.

In order to have a successful business we must know and understand the laws of nature and willfully give into them. We must fully understand our limits and know when it is necessary to stop. For it is as Emerson quotes in chapter five of "Nature": "what good heed, nature forms in us! She pardons no mistakes. Her yea is yea, and her nay, nay."