This paper suggests that the demise of the capitalists—workers class structure was a socio-economic transformation orchestrated by the capitalists in reaction to the increasing importance of human capital in sustaining their profit rates. Physical capital accumulation in the process of industrialization enhanced the importance of human capital in production and generated incentives for capitalists to support the provision of public education for the masses, triggering the demise of the existing class structure. The implications of the theory are consistent with the voting patterns on England's education reform of 1902.
Keywords: E25; J24; N33; N43
Journal Article. 17686 words. Illustrated.
Subjects: Demand and Supply of Labour ; Macroeconomics: Consumption, Saving, Production, Employment, and Investment ; Labour and Demographic Economics ; Economic History
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