Title: Table 1
1(No Transcript)
2 Table 1 The Evolution of Production and Its
Organization
Economy
Ownership/Control
Production Method
Purpose
Scope
Production for use
Handicrafthand tools
Money
Proprietor/Partner
Local/Regional
P/P Manager gt joint stock company
Production for sale
Regional/National
Factory Machines
Money gt Credit
Industrial Machine Process
National/ International
StockholderAbsentee Owner/ Managerial
Credit (Mark I)
Capital gains
Technological Electronic Machine Process
StockholderAbsentee Owner/ Managerial Elite
Credit Derivatives (Mark II)
Asset Value Manipulation
Anational
3Institutions and Working Rules
- Working Rules under Handicraft vs Factory Systems
- Regulation or Control of System Price
impersonal competition - Efficiency
- Equity
- Purpose
- Technological Improvement
- Static vs Dynamic System and Theories
- Classical and Neo-Classical theory is static
based on achieving equilibrium - Decreasing returns (physical material -- a
relationship of man to nature) - The physical economists
- Factory System is too dynamic for the theory
- Increasing returns (mental materials and
invention a relationship of man to man) - The Social economists
- Leads to new Theories and New Working Rules
4Economic Theory the Machine Process
- Nature of Machine Process
- Industrial Employment
- Example of Steel and Railroads
- Inventions in steel making Cheap uniform
quality steel - Railroads the first big business
- Gauge problem
- Vanderbilt vs the Erie Gang
- Uniform quality steel and the American system of
manufacturing - Interchangeable Parts
- Concatenation of industries
- Standardization within and across sectors
- Determines rules of production
- Logic of machines
- Veblen and Mill
- Production costs
- Mass production
- Moving Assembly
- Ford Automobile
- Scientific Management (Frederick Taylor)
5Railroad Gauge in US - 1860