By Edwin A Notley

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Collins (1980) views Weber's thesis as offering the institutional foundations of the neoclassical concept of the market, whereby individual entrepre- Developments in Modern Industrial Capitalism 35 neurs calculate their outcomes. The state was key to the institutional structure of rational capitalism through professional administrators, who applied law, eliminating pre-capitalist barriers such as feudalism (pp. 928±32). Weber followed his explanation of the foundations of modern capitalism with an analysis of the modern bureaucratic state, providing insights into the management of large-scale capitalist enterprise.

While disapproving of Smith's competitive market, Marx described capitalism as monopolistic capital with inbuilt contradictions displaying a tendency towards replacing labour with machinery, decreasing profit and deterioration of the working class. In fact, he went so far as to predict the end of capitalism and its replacement with socialism (Meek, 1977, p. 4). Like Smith, Marx investigated relations of production and regarded them as representing classical political economy and capitalism as incapable of delivering a just and equitable society.

We are also witness to less fluctuations ± the businesscycle, once regarded as routine in the form of recession or depressions, is a less common occurrence in industrialized economies. Other important changes identified by Galbraith as important are the increasing investment in business promotion through persuasion, the stabilization or decline of union membership and the expansion in enrolment in higher education. With the cumulative effects of these changes has come the need and opportunity for the large corporation to determine what to produce and how to persuade consumers to use their products.

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A Comparative Grammar of the French, Italian, Spanish and Portuguese Languages by Edwin A Notley


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