"In the early 20th century, sociologist Max Weber noted that sweeping industrialization would transform how societies worked. As small, informal operations gave way to large, complex organizations with clearly defined roles and responsibilities, leaders would need to rely less on tradition and charisma, and more on organization and rationality. He also foresaw that jobs would need to be broken down into specialized tasks and governed by a system of hierarchy,"
"In 1776, Adam Smith published The Wealth of Nations. Today, regarded as the seminal work of capitalism, it wasn't seen that way at the time (the term did not exist in common usage). Rather, it was a powerful critique of mercantilism, the dominant economic model at the time, which sought to accumulate a country's resources through promoting exports and minimizing imports."
Max Weber predicted that sweeping industrialization would transform societies by replacing small informal operations with large, complex organizations in which roles and responsibilities are clearly defined. Jobs would be broken into specialized tasks governed by hierarchy, authority, and responsibility, creating bureaucracies that entrust power to institutions rather than individuals. Gallup data show contemporary faith in institutions has been shattered across politics, schools, and big business, with only the military and small business retaining majority support, effectively reversing Weber's process and privileging individuals over institutions. Adam Smith argued national wealth derives from production and criticized mercantilism. Daron Acemoglu and James Robinson build on Smith in Why Nations Fail.
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