The second stage of this theory is based heavily on individual initiative. People need to begin taking the initiative to become " individual entrepreneurs who will take the economic risks for economic progress." This can be achieved through education of the society because education leads to the erosion of traditionalism through learning of new ideas. The third stage is named the "Take-off stage." It is named this because this is the time where traditionalism has eroded greatly and individuals begin to invest and save due to excess of capital. This leads to industrialization. After this is "self-sustained growth." In this phase the industry of society has grown to a point where technology is ever increasing because of the need for companies to compete with each other to appeal to the consumer. Education is also very important at this stage in order to keep the skills of workers and management very tuned and able capable of doing increasingly advanced work. During this time individuals consistently are reinvesting their savings to keep the drive behind the markets. The final stage in this theory is called the "High economic growth" stage. In this stage the standard of living becomes very high because of the consumption of material goods and services which are partly enabled because of mass production.
There are many different arguments involved with Modernization theory, some of which are very good and like anything else, some are not so good. One of the biggest arguments presented is about the process of infusion of capital from first world countries into countries that are less developed. This occurs because of the amount of labor required in developed countries far exceeds the workers that we possess because of the aforementioned high standard of living and the consumption of material goods. The solution is to move plants that require manufacturing of sorts to places where jobs are needed and where workers are willing to accept less in the way of wages.