Table 1

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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
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Institutions 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

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Economic 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)

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Railroad Gauge in US - 1860