4. NATIONAL CAPITALISM (1933 1950)
The abuses of industrial capitalism gave rise to national capitalism whose pitfalls led to managerial capitalism.
National capitalism is a national control of the capitalistic system which the aim was to remedy inequities Created under industrial and financial capitalism.
Ownership of business remained in private hands but in the interest of public the government intervened. The principle of laissez faire was abandoned. The governments tightened controls and enacted protective legislations.
National capital gives the lesson that the public must realize the extreme importance of business in the growth and continuation of our way of life.
On the other hand business must learn that responsibility for public well-being is not just a gimmick. Business must serve the public as well as make a profit. Public trust is a commodity to be earned and treasured by business.