Myth of the 20th Century The Visible Hand: The Managerial Revolution in American Business
May 14, 2021
Explore how America's youth and vast resources fueled a managerial revolution, paving the way for giant corporations. Discover the legacy of Alfred D. Chandler Jr., who transformed our understanding of business history. Delve into the evolution of managerial practices and the roots of modern business education, revealing the shift from entrepreneurial to corporate-focused training. Examine the abstract nature of capital ownership and how it reshapes accountability in capitalism. Finally, analyze the rise of middle management and its impact on contemporary enterprise.
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Start of Managerial Revolution
- The managerial revolution in American business began around the 1840s with the emergence of complex industrial and financial systems.
- Managerial hierarchies replaced small proprietorships to efficiently manage growing capital and industrial complexity.
Why American Managerialism Thrived
- Chandler attributes American managerial capitalism to Anglo-Dutch commercial culture fused with geographic and demographic advantages.
- Rapid territorial expansion and abundant resources necessitated novel management forms for national economic coordination.
The Visible Hand Revealed
- The "Visible Hand" replaces Adam Smith's invisible hand in American market coordination.
- Economic management arose through deliberate human efforts, not spontaneous market forces.
