Reacting to increasing consumption and production and to the resulting pressures for further efficiency, the establishments of capitalism began to reorganize toward the end of the nineteenth century. "New capitalism" is a social political order of society characterized by unequal distribution of wealth. As new firms had been small, now, as new firms grew and their need for capital increased, they began to incorporate. A stockholding rentier class emerged and encouraged capitalism through friendly legislation. By the wish of capitalist businessmen they expanded their industrial activities to meet increased demands.
A "new capitalism" has emerged in the U.S. since 1980. This economy has several key features. Limited liability, vertical and horizontal organizations, big business and government, rigid international competition, state deregulation of industry, institutional ownership of firms, and rapid technological change are some institutional features. As a result, organizational features include smaller size, structural ease, and flexibility achieved through downsizings and restructurings.
There was a socio-economic order of these "New Capitalist" societies. The highest, yet smallest percentage went to the captains of industry, then the middle management, and finally the largest percentage but the lowest was the laborers.
Scientific principles were applied to labor and production in "New Capitalist" societies. Without scientific principles, technology on a large scale would not have come as far in the development of inventions. The inventions led to mass productions that guaranteed societies a supply of raw materials at reasonable prices. A most important technological change in this period resulted in the mass production of steel. The advantages of steel over iron are its hardness and strength. Other examples of scientific principles include electricity (heat and light) and advantages in chemical industry. These reforms were no more than a reflection of the general move in the direction of greater efficiency.
The correlation between industrial...