Anycommunitymaybeviewedasanindustrialoreconomicmechanism，thestructureofwhichismadeupofwhatiscalleditseconomicinstitutions。Theseinstitutionsarehabitualmethodsofcarryingonthelifeprocessofthecommunityincontactwiththematerialenvironmentinwhichitlives。Whengivenmethodsofunfoldinghumanactivityinthisgivenenvironmenthavebeenelaboratedinthisway，thelifeofthecommunitywillexpressitselfwithsomefacilityinthesehabitualdirections。Thecommunitywillmakeuseoftheforcesoftheenvironmentforthepurposesofitslifeaccordingtomethodslearnedinthepastandembodiedintheseinstitutions。Butaspopulationincreases，andasmen’sknowledgeandskillindirectingtheforcesofnaturewiden，thehabitualmethodsofrelationbetweenthemembersofthegroup，andthehabitualmethodofcarryingonthelifeprocessofthegroupasawhole，nolongergivethesameresultasbefore；noraretheresultingconditionsoflifedistributedandapportionedinthesamemannerorwiththesameeffectamongthevariousmembersasbefore。Iftheschemeaccordingtowhichthelifeprocessofthegroupwascarriedonundertheearlierconditionsgaveapproximatelythehighestattainableresult——underthecircumstances——inthewayofefficiencyorfacilityofthelifeprocessofthegroup；
thenthesameschemeoflifeunalteredwillnotyieldthehighestresultattainableinthisrespectunderthealteredconditions。
Underthealteredconditionsofpopulation，skill，andknowledge，thefacilityoflifeascarriedonaccordingtothetraditionalschememaynotbelowerthanundertheearlierconditions；butthechancesarealwaysthatitislessthanmightheiftheschemewerealteredtosuitthealteredconditions。
Thegroupismadeupofindividuals，andthegroup’slifeisthelifeofindividualscarriedoninatleastostensibleseveralty。Thegroup’sacceptedschemeoflifeistheconsensusofviewsheldbythebodyoftheseindividualsastowhatisright，good，expedient，andbeautifulinthewayofhumanlife。
Intheredistributionoftheconditionsoflifethatcomesofthealteredmethodofdealingwiththeenvironment，theoutcomeisnotanequablechangeinthefacilityoflifethroughoutthegroup。Thealteredconditionsmayincreasethefacilityoflifeforthegroupasawhole，buttheredistributionwillusuallyresultinadecreaseoffacilityorfullnessoflifeforsomemembersofthegroup。Anadvanceintechnicalmethods，inpopulation，orinindustrialorganizationwillrequireatleastsomeofthemembersofthecommunitytochangetheirhabitsoflife，iftheyaretoenterwithfacilityandeffectintothealteredindustrialmethods；andindoingsotheywillbeunabletoliveuptothereceivednotionsastowhataretherightandbeautifulhabitsoflife。