TAILIEUCHUNG - An Outline of the history of economic thought - Chapter 5

5 The Triumph of Utilitarianism and the Marginalist Revolution . The Marginalist Revolution . The ‘climax’ of the 1870s and 1880s The quarter century from the early 1870s was a period of contrasts. On the one hand, there was a continuation or, rather, an intensification, of the process of deep structural change | 5 The Triumph of Utilitarianism and the Marginalist Revolution . The Marginalist Revolution . The climax of the 1870s and 1880s The quarter century from the early 1870s was a period of contrasts. On the one hand there was a continuation or rather an intensification of the process of deep structural change which had begun during the preceding twenty years on the other economic difficulties of various kinds and intensity appeared that looked like the first signs of a general crisis of the capitalist system and that made many observers speak of a Great Depression . Growth proceeded at different rates in different countries but was everywhere accompanied by a marked increase in the concentration of capital with a spread of collusive practices mergers and the formation of cartels. This process was encouraged by great changes in productive techniques which caused remarkable increases in the size of plant especially in the mechanical iron and steel transport and communications industries. Besides this the organizational form of the limited company consolidated its position and became the privileged instrument for the mobilization and control of the huge amounts of capital needed for growth. Social relations in this context began to structure themselves by taking on two different configurations in the factory and in society. Inside the firms especially the large ones the relations among individuals assumed a hierarchical and bureaucratized form and this led to the first attempts at personnel management and the first formulations of management science . In society as a whole on the other hand class conflict sharpened dramatically and began to assume the form of a direct battle between powerful political and union groups. In section we shall say more about the widespread explosion of social conflict and the effects it produced on the moods of the dominant classes. The unequal development of countries also produced fiercer international competitiveness not only

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