POLI 212 Lecture Notes - Capital Accumulation, Industrial Unionism, Income Tax
2 Oct 2014
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Document Summary
Some of the first textile steps does not require the production of large farms sometimes contracted out to smaller farms: decentralized industry. Capital accumulation doesn"t take much capital to start in the industry because of the decentralization competition of small firms. Start up costs for small firms is relatively small so firms are relatively easy to finance. The early investment in the industry is the reinvestment of earnings investment is connected to self-investment. Family firms: has consequences for financial sector/market. Finance industry did not depend on banks (especially large national industrial banks) decentralized financial system characterized by region specific banks for small family firms. Banks did not have an important role in the management of firms. Didn"t have a strong financial part to play since the capital was self- generated. Therefore agricultural systems less likely to be commercialized/capitalized. Incentives because of interstate competition to maintain self- sufficiency.
