Legal-Rational Authority Weber considered traditional authority as impeding capitalist economic growth. Capitalism is based on forms of organization that require careful calculation rather than habit. As capitalism developed, traditional authority gave way to legal-rational authority. Legal rational authority or power is based on a belief in the lawfulness of enacted rules (laws) the the legitimate right of leaders to exercise authority under such rules. People believe in laws rather than in tradition. Leaders are legitimate as long as they obey the laws Laws are enacted through formal bureaucratic procedure. The authority of the President of the United States rests in liberal-rational authority. Weber argues that this type of authority is most compatible with modern capitalism and socialism (Appelbaum and Chambliss, 248:1997). Example: The authority of the President of the United States is based on legal-rational authority. State and Government
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