Lecture 11: The Second Industrial Revolution

among primary producing countries, what dictates whether they are rich or not?

countries that have favorable resource-to-labor ratios (Australia, Canada, Uruguay, South Africa, etc)

what were the countries that broke the mold?

Germany after 1870, Japan, South Korea, and the US + Ontario

how did the US break the mold?

by applying the Hamiltonian system that turned the US from an agricultural society to a manufacturing one

pushes for the idea that the degree of prosperity depends on the division of labor

Jefferson uses an embargo to cut off trade with Europe, what were the effects of this?

creates a US manufacturing industry to produce the things that could not be imported from Europe during the embargo

what are the four things Allen said really mattered that made American exception?

emphasis on education for children rather than working in factories like they were in Britain, power and resource advantage in US, the US was attracting immigrants, focus on investments in infrastructure and capital and organizational learning

corporations do not work through a market logic, but rather through

a command and control logic

what are the five things a modern corporation is?

mean stock, ways to gamble on the stock market, corporations as investment vehicles, technology use, valuable production network

modern corporations are controlled by

shareholders

the productive economy in the industrial economy at the core does what to the periphery?

advances inequality, despotism, oppression, slavery, and serfdom

true or false: the market economy is enough for optimal market performance?

false

what kind of support does the market economy need?

developmental state, business culture and engineering-culture institutions

what such institutions did the US develop in the 1880s that helped them achieve optimal performance?

immigrant absorption and assimilation, a mass-education system, an engineering system, an industrial research system, and a managerial corporation system