Capitalism is an economic system in which property is owned by either private individuals or a corporation. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area Property is any physical or virtual entity that is owned by an individual Private ownership is sometimes used as a synonym for individual ownership, however the term "private" may also be used to refer to collective ownership of individuals in the form of corporate ownership. Therefore, "privately owned" in the context of this definition means not owned or controlled by the state[1] and operated for profit,[2] and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy. Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving Distribution (or place) is one of the four elements of Marketing mix. Income, refers to consumption opportunity gained by an entity within a specified time frame which is generally expressed in monetary terms Pricing is one of the Four p's of the Marketing mix. The other three aspects are product promotion and place. A service is the non-material equivalent of a good. A service provision is an economic activity that does not result in Ownership, and this is what differentiates A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a It is usually considered to involve the right of individuals and corporations to trade, using money, in goods, services (including finance), labor and land. A corporation is a separate legal entity usually used to conduct business Trade is the willing exchange of goods, services, or both Trade is also called Commerce. Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated Land in Economics comprises all naturally occurring resources whose supply is inherently fixed (i
Capitalist economic practices became institutionalized in England between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world, and early forms of merchant capitalism flourished during the Middle Ages. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland "Ancient" redirects here For other uses see Ancient_(disambiguation. Mercantilism is the idea that a colony should export more goods than it imports and that a colony should sell at higher prices and buy at lower prices [3][4] Capitalism has been dominant in the Western world since the end of feudalism. Feudalism, a term first used in the early modern period (17th century in its most classic sense refers to a Medieval Europe Political system composed [3] From England it gradually spread throughout Europe, across political and cultural frontiers. In the 19th and 20th centuries, capitalism provided the main, but not exclusive, means of industrialization throughout much of the world. is a process of social and economic change whereby a human group is transformed from a Pre-industrial society into an industrial one [5]
The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture, and some feel that the term "mixed economies" more precisely describes most contemporary economies. A mixed economy is an Economic system that incorporates aspects of more than one economic system [6][7] Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation. [5] During the last century capitalism has been contrasted with centrally planned economies, such as Marxist economies. A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. Marxism is the political philosophy and practice derived from the work of Karl Marx and Friedrich Engels.
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Perspectives
The concept of capitalism has evolved over time, with later thinkers often building on the analysis of earlier thinkers. Moreover, the component concepts used in defining capitalism — such as private ownership, markets and investment — have evolved along with changes in theory, in law, and in practice. Property is any physical or virtual entity that is owned by an individual
Classical political economy
The "classical" tradition in economic thought emerged in Britain in the late 18th century. The history of economic thought deals with different thinkers and theories in the field of Political economy and Economics from the ancient world to the present The classical political economists Adam Smith, David Ricardo, Jean-Baptiste Say, and John Stuart Mill published analyses of the production, distribution, and exchange of goods in a capitalist economy that have since formed the basis of study for most contemporary economists. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. David Ricardo (18 April 1772 &ndash 11 September 1823 was an English political economist, often credited with systematizing economics and was one of the most influential Jean-Baptiste Say ( January 5, 1767 &ndash November 15, 1832) was a French economist and businessman John Stuart Mill (20 May 1806 &ndash 8 May 1873 British Philosopher, political economist, civil servant and Member of Parliament, was an influential Contributions to this tradition are also found in the earlier work of David Hume and the physiocrats like Richard Cantillon. David Hume (26 April 1711 25 August 1776 Scottish Philosopher, Economist, and Historian is an important figure in Western philosophy The physiocrats were a group of Economists who believed that the wealth of nations was derived solely from the value of land Agriculture or land development Richard Cantillon (1680-1734 acknowledged by many historians as the first great economic "theorist" is an obscure character
Adam Smith's attack on mercantilism and his reasoning for "the system of natural liberty" in The Wealth of Nations (1776) are usually taken as the beginning of classical political economy. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. Mercantilism is the idea that a colony should export more goods than it imports and that a colony should sell at higher prices and buy at lower prices An Inquiry into the Nature and Causes of the Wealth of Nations is the Magnum opus of the Scottish economist Adam Smith. Smith devised a set of concepts that remain strongly associated with capitalism today, particularly his theory of the "invisible hand" of the market, through which the pursuit of individual self-interest unintentionally produces a collective good for society. The invisible hand is a Metaphor coined by the Economist Adam Smith. He criticized monopolies, tariffs, duties, and other state enforced restrictions of his time and believed that the market is the most fair and efficient arbitrator of resources. This view was shared by David Ricardo, second most important of the classical political economists and one of the most influential economists of modern times. David Ricardo (18 April 1772 &ndash 11 September 1823 was an English political economist, often credited with systematizing economics and was one of the most influential [8] In The Principles of Political Economy and Taxation (1817) he developed the law of comparative advantage, which explains why it is profitable for two parties to trade, even if one of the trading partners is more efficient in every type of economic production. In international trade the principle of comparative advantage refers to the fact that although one country may have an absolute disadvantage with another value can be created for both This principle supports the economic case for free trade. Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions Ricardo was a supporter of Say's Law and held the view that full employment is the normal equilibrium for a competitive economy. In Economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832 stating [9] He also argued that inflation is closely related to changes in quantity of money and credit and was a proponent of the law of diminishing returns, which states that each additional unit of input yields less and less additional output. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating In Economics, diminishing returns is also called diminishing marginal returns or the law of diminishing returns. [10]
The values of classical political economy are strongly associated with the classical liberal doctrine of minimal government intervention in the economy. Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world Classical liberal thought has generally assumed a clear division between the economy and other realms of social activity, such as the state. [11]
Marxian political economy
Karl Marx considered capitalism to be a historically specific mode of production (the way in which the productive property is owned and controlled, combined with the corresponding social relations between individuals based on their connection with the process of production) in which capital has become the dominant mode of production. Note Marxian economics is not restricted to Marxist economics as it includes the economic thought of those inspired by Marx's works who do not identify with In the writings of Karl Marx and the Marxist theory of Historical materialism, a mode of production (in German Produktionsweise, meaning 'the Relations of production (German Produktionsverhältnisse) is a concept frequently used by Karl Marx in his theory of Historical materialism and in [12] The capitalist stage of development or "bourgeois society," for Marx, represented the most advanced form of social organization to date.
Following Adam Smith, Marx distinguished the use value of commodities from their exchange value in the market. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. In Marx's critique of Political economy, any labor-product has a value and a use value, and if it is traded as a Commodity in markets it In Political economy and especially Marxian economics, exchange value refers to one of four major attributes of a commodity, i Capital, according to Marx, is created with the purchase of commodities for the purpose of creating new commodities with an exchange value higher than the sum of the original purchases. In Economics, capital or capital Goods or real capital refers to items of extensive value For Marx, the use of labor power had itself become a commodity under capitalism; the exchange value of labor power, as reflected in the wage, is less than the value it produces for the capitalist. Labour power (in German Arbeitskraft, or labour force is a crucial concept used by Karl Marx in his critique of capitalist Political economy This difference in values, he argues, constitutes surplus value, which the capitalists extract and accumulate. Surplus value is a concept created by Karl Marx in his critique of Political economy, where its ultimate source is unpaid Surplus labor In his book Capital, Marx argues that the capitalist mode of production is distinguished by how the owners of capital extract this surplus from workers — all prior class societies had extracted surplus labor, but capitalism was new in doing so via the sale-value of produced commodities. In Marxian economic discourse the capitalist mode of production refers to the socio-economic base of capitalist society which began to grow rapidly in Western Europe from the Surplus labour is a concept used by Karl Marx in his critique of Political economy. [13]
For Marx, this cycle of the extraction of the surplus value by the owners of capital or the bourgeoisie becomes the basis of class struggle. Class struggle is the active expression of Class conflict looked at from any kind of socialist perspective However, this argument is intertwined with Marx's version of the labor theory of value asserting that labor is the source of all value, and thus of profit. The labor theories of value (LTV are theories in Economics according to which the values of Commodities are related to the labor needed to This theory is contested by most current economists, including some contemporary Marxian economists. An economist is an expert in the Social science of Economics. [5] One line of subsequent Marxian thinking sees the centrally-planned economic systems of existing "communist" societies that were still based on exploitation of labor as "state capitalism. State capitalism, in its classic meaning is a private capitalist economy under State control "[14]
Vladimir Lenin, in Imperialism, the Highest Stage of Capitalism (1916), modified classic Marxist theory and argued that capitalism necessarily induced monopoly capitalism - which he also called "imperialism" - in order to find new markets and resources, representing the last and highest stage of capitalism. Imperialism the Highest Stage of Capitalism (1916 by Vladimir Lenin is a classic Marxist theoretical treatise on the relationship between Capitalism The theory of state monopoly capitalism ("Stamocap" or "Stamokap" theory was initially a Marxist doctrine popularised after World War II [15]
In Marxist thought, capitalism is often linked with patriarchal hegemony. Patriarchy is the structuring of Society on the basis of Family units where fathers have primary responsibility for the welfare of hence authority over Hegemony (hɨˈdʒɛməni (Amer /hɨˈɡɛməni/ (Brit (ἡγεμονία hēgemonía) is a concept that has been used to describe and explain the dominance of one social [16] Some 20th century Marxian economists consider capitalism to be a social formation where capitalist class processes dominate, but are not exclusive. Note Marxian economics is not restricted to Marxist economics as it includes the economic thought of those inspired by Marx's works who do not identify with [17] Capitalist class processes, to these thinkers, are simply those in which surplus labor takes the form of surplus value, usable as capital; other tendencies for utilization of labor nonetheless exist simultaneously in existing societies where capitalist processes are predominant. Surplus labour is a concept used by Karl Marx in his critique of Political economy. Surplus value is a concept created by Karl Marx in his critique of Political economy, where its ultimate source is unpaid Surplus labor However, other late Marxian thinkers emphasize that capitalism is the mode by which a surplus is generated — the mode of surplus extraction — in modern societies where an absolute majority of the population is engaged in non-capitalist economic activity. [18]
Weberian political sociology
In some social sciences, the understanding of the defining characteristics of capitalism has been strongly influenced by 19th century German social theorist Max Weber. Maximilian Carl Emil Weber (maks 'veːbɐ (21 April 1864 &ndash 14 June 1920 was a German political economist and sociologist who was considered The social sciences comprise academic disciplines concerned with the study of the social life of human groups and individuals including Anthropology, Communication studies Maximilian Carl Emil Weber (maks 'veːbɐ (21 April 1864 &ndash 14 June 1920 was a German political economist and sociologist who was considered Weber considered market exchange, rather than production, as the defining feature of capitalism; capitalist enterprises, in contrast to their counterparts in prior modes of economic activity, was their rationalization of production, directed toward maximizing efficiency and productivity. Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information Productivity in Economics refers to measures of output from production processes per unit of input According to Weber, workers in pre-capitalist economic institutions understood work in terms of a personal relationship between master and journeyman in a guild, or between lord and peasant in a manor. A master craftsman (sometimes called only master or grandmaster, Meister was a member of a Guild. A journeyman is a trader or crafter who has completed an Apprenticeship. A guild is an association of craftsmen in a particular trade The earliest guilds were formed as confraternities of workers A peasant is an agricultural worker who subsists by working a small plot of ground This article is about the medieval system "Manors" redirects here [19]
In his book The Protestant Ethic and the Spirit of Capitalism (1904-1905), Weber sought to trace how capitalism transformed traditional modes of economic activity. The Protestant Ethic and the Spirit of Capitalism is a Book written by Max Weber, a German Economist and Sociologist in For Weber, the 'spirit' of rational calculation eroded traditional restraints on capitalist exchange, and fostered the development of modern capitalism. This 'spirit' was gradually codified by law; rendering wage-laborers legally 'free' to sell work; encouraging the development of technology aimed at the organization of production on the basis of rational principles; and clarifying the separation of the public and private lives of workers, especially between the home and the workplace. Therefore, unlike Marx, Weber did not see capitalism as primarily the consequence of changes in the means of production. [20] Instead, for Weber the origins of capitalism rested chiefly in the rise of a new entrepreneurial 'spirit' in the political and cultural realm. An entrepreneur is a person who has possession over a company enterprise, or Venture, and assumes significant accountability for the inherent risks and the outcome In the Protestant Ethic, Weber suggested that the origin of this 'spirit' (the Protestant work ethic) was related to the rise of Protestantism, particularly Calvinism. The Protestant work ethic, sometimes called the Puritan work ethic, is a sociological theoretical concept Protestantism refers to the forms of Christian faith and practice that originated in the 16th century Protestant Reformation. Calvinism (sometimes called the Reformed tradition, the Reformed faith, or Reformed theology) is a theological system and an approach to the
Capitalism, for Weber, is the most advanced economic system ever developed over the course of human history. Weber associated capitalism with the advance of the business corporation, public credit, and the further advance of bureaucracy of the modern world. A corporation is a separate legal entity usually used to conduct business Bureaucracy is the structure and set of regulations in place to control activity usually in large organizations and government Although Weber defended capitalism against its socialist critics of the period, he saw its rationalizing tendencies as a possible threat to traditional cultural values and institutions, and a possible 'iron cage' constraining human freedom. [21]
German Historical School and Austrian School
From the perspective of the German Historical School, capitalism is primarily identified in terms of the organization of production for markets. The Historical school of economics was an approach to academic Economics and to public administration that emerged in 19th century in Germany, and held sway there Sao Paulo Stock Exchangejpg|thumb| Virtual market arena where buyer and seller are not present and trade via intemediates and electronical information Although this perspective shares similar theoretical roots with that of Weber, its emphasis on markets and money lends it different focus. Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. [12] For followers of the German Historical School, the key shift from traditional modes of economic activity to capitalism involved the shift from medieval restrictions on credit and money to the modern monetary economy combined with an emphasis on the profit motive. A monetary system secures the proper functioning of Money by regulating economic agents transaction types and Money supply.
In the late 19th century the German historical school of economics diverged with the emerging Austrian School of economics, led at the time by Carl Menger. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian The Austrian School, also known as the “ Vienna School ” or the “ Psychological School ” is a heterodox school of economics that advocates This article is about the economist not about his son the mathematician Karl Menger. Later generations of followers of the Austrian School continued to be influential in Western economic thought through much of the 20th century. The Austrian economist Joseph Schumpeter, a forerunner of the Austrian School of economics, emphasized the "creative destruction" of capitalism — the fact that market economies undergo constant change. Joseph Alois Schumpeter ( February 8, 1883 &ndash January 8, 1950) was an Economist and Political scientist born in The notion of creative destruction is found in the writings of Mikhail Bakunin, Friedrich Nietzsche and in Werner Sombart 's Krieg und Kapitalismus At any moment of time, posits Schumpeter, there are rising industries and declining industries. Schumpeter, and many contemporary economists influenced by his work, argue that resources should flow from the declining to the expanding industries for an economy to grow, but they recognized that sometimes resources are slow to withdraw from the declining industries because of various forms of institutional resistance to change.
The Austrian economists Ludwig von Mises and Friedrich Hayek were among the leading defenders of market capitalism against 20th century proponents of socialist planned economies. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. Mises and Hayek argued that only market capitalism could manage a complex, modern economy. Since a modern economy produces such a large array of distinct goods and services, and consists of such a large array of consumers and enterprises, asserted Mises and Hayek, the information problems facing any other form of economic organization other than market capitalism would exceed its capacity to handle information. Thinkers within Supply-side economics built on the work of the Austrian School, and particular emphasize Say's Law: "supply creates its own demand. Supply-side economics is an arguably heterodox school of Macroeconomic thought that argues that economic growth can be most effectively created using incentives for In Economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832 stating " Capitalism, to this school, is defined by lack of state restraint on the decisions of producers.
Austrian economics has been a major influence on the ideology of libertarianism, which considers laissez-faire capitalism to be the ideal economic system. Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do”
Keynesian economics
In his 1937 The General Theory of Employment, Interest, and Money, the British economist John Maynard Keynes argued that capitalism suffered a basic problem in its ability to recover from periods of slowdowns in investment. John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas The General Theory of Employment Interest and Money was written by the English economist John Maynard Keynes. John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas Keynes argued that a capitalist economy could remain in an indefinite equilibrium despite high unemployment. In Economics, economic equilibrium is simply a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium values of economic Unemployment occurs when a person is available to work and currently seeking work but the person is without work. Essentially rejecting Say's law, he argued that some people may have a liquidity preference which would see them rather hold money than buy new goods or services, which therefore raised the prospect that the Great Depression would not end without what he termed in the General Theory "a somewhat comprehensive socialization of investment. In Economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832 stating Finance Theory John Maynard Keynes developed the Liquidity Preference of Interest in the General Theory of Employment Interest and Money. "
Keynesian economics challenged the notion that laissez-faire capitalist economics could operate well on their own, without state intervention used to promote aggregate demand, fighting high unemployment and deflation of the sort seen during the 1930s. Deflation is the opposite of Inflation. Therefore under the usual contemporary definition of inflation 'deflation' means a decrease in the general price level. He and his followers recommended "pump-priming" the economy to avoid recession: cutting taxes, increasing government borrowing, and spending during an economic down-turn. Deficit spending is the amount by which a government private company or individual's spending exceeds income over a particular period of time also called simply "deficit" A recession is a contraction phase of the Business cycle. The U This was to be accompanied by trying to control wages nationally partly through the use of inflation to cut real wages and to deter people from holding money. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time [22] The premises of Keynes’s work have, however, since been challenged by neoclassical and supply-side economics and the Austrian School. Supply-side economics is an arguably heterodox school of Macroeconomic thought that argues that economic growth can be most effectively created using incentives for
Another challenge to Keynesian thinking came from his colleague Piero Sraffa, and subsequently from the Neo-Ricardian school that followed Sraffa. Piero Sraffa (1898-1983 was an influential Italian Economist whose book Production of Commodities by Means of Commodities is taken as founding the The neo-Ricardian school is an economic school that derives from the close reading and interpretation of David Ricardo by Piero Sraffa, and from Sraffa's In Sraffa's highly-technical analysis, capitalism is defined by an entire system of social relations among both producers and consumers, but with a primary emphasis on the demands of production. According to Sraffa, the tendency of capital to seek its highest rate of profit causes a dynamic instability in social and economic relations.
Neoclassical economics and the Chicago School
Today, most academic research on capitalism in the English-speaking world draws on neoclassical economic thought. Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Neoclassical economics is a term variously used for approaches to Economics focusing on the determination of prices outputs and income distributions in markets It favors extensive market coordination and relatively neutral patterns of governmental market regulation aimed at maintaining property rights, rather than privileging particular social actors; deregulated labor markets; corporate governance dominated by financial owners of firms; and financial systems depending chiefly on capital market-based financing rather than state financing. Labour economics seeks to understand the functioning of the Market and dynamics for labour. The capital market is the Market for securities, where companies and Governments can raise longterm funds
The Chicago School of economics is best known for its free market advocacy and monetarist ideas. Monetarism is a school of economic thought concerning the determination of national income and monetary Economics. According to Milton Friedman and monetarists, market economies are inherently stable if left to themselves and depressions result only from government intervention. Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” [23] Friedman, for example, argued that the Great Depression was result of a contraction of the money supply, controlled by the Federal Reserve, and not by the lack of investment as Keynes had argued. Ben Bernanke, current Chairman of the Federal Reserve, is among the economists today generally accepting Friedman's analysis of the causes of the Great Depression. Ben Shalom Bernanke (born December 13, 1953) is the incumbent Chairman of the Board of Governors of the United States Federal Reserve. [24]
Neoclassical economists, which today are the majority of economists,[25] consider value to be subjective, varying from person to person and for the same person at different times, and thus reject the labor theory of value. Marginalism is the theory that economic value results from marginal utility and marginal cost (the marginal concepts). Marginalism is the use of Marginal concepts within Economics. In Economics and Finance, marginal cost is the change in Total cost that arises when the quantity produced changes by one unit In Economics, marginal concepts are associated with a specific change in the quantity used of a good or service, as opposed to some notion of These economists see capitalists as earning profits by forgoing current consumption, by taking risks, and by organizing production.
History
Private ownership of some means of production has existed at least in a small degree since the invention of agriculture. The history of Capitalism dates back to early forms of Merchant capitalism practiced in the Middle East and Western Europe during the Some writers see medieval guilds as forerunners of the modern capitalist concern (especially through using apprentices as a kind of paid laborer); but economic activity was bound by customs and controls which, along with the rule of the aristocracy which would expropriate wealth through arbitrary fines, taxes and enforced loans, meant that profits were difficult to accumulate. A guild is an association of craftsmen in a particular trade The earliest guilds were formed as confraternities of workers Apprenticeship is a system of Training a new generation of practitioners of a skill Aristocracy is a form of Government, where rule is established through an internal struggle over who has the most status and influence over society and internal relations By the 18th century, however, these barriers to profit were overcome and capitalism became the dominant economic system of the United Kingdom and by the 19th century Western Europe.
Some writers trace back the earliest stages of merchant capitalism even further to the Caliphate during the 9th-12th centuries, where a vigorous monetary market economy was created on the basis of the expanding levels of circulation of a stable high-value currency (the dinar) and the integration of monetary areas that were previously independent. Mercantilism is the idea that a colony should export more goods than it imports and that a colony should sell at higher prices and buy at lower prices A caliphate (from the Arabic خلافة or khilāfa) is the political leadership of the Muslim community in classical and medieval Islamic history The monetary economy is that part of a society's Economic system where products and services are traded in exchange for money A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is The Dinar is the name of the official currency in several countries Monetary policy is the process by which the Government, Central bank, or monetary authority of a country controls (i the Supply of Money, Innovative new business techniques and forms of business organization were introduced by economists, merchants and traders during this time. A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to Companies law (or the law of business associations) is the field of Law concerning business and other organizations An economist is an expert in the Social science of Economics. Merchants function as professionals who deal with Trade, dealing in commodities that they do not produce themselves in order to produce Profit. Such innovations included trading companies, bills of exchange, contracts, long-distance trade, big businesses, the first forms of partnership (mufawada in Arabic) such as limited partnerships (mudaraba) (mufawada partnership possessed features similar to those of the early medieval family compagnia in Europe[26]), and the concepts of credit, profit, capital (al-mal) and capital accumulation (nama al-mal). A joint stock company (JSC is a type of business entity it is a type of Corporation or Partnership. A negotiable instrument is a specialized type of " Contract " for the payment of money that is unconditional and capable of transfer by negotiation A contract is an exchange of promises between two or more parties to do or refrain from doing an act which is enforceable in a court of law Trade is the willing exchange of goods, services, or both Trade is also called Commerce. Big Business or big business is a term used to describe large corporations in either an individual or collective sense For partnership in cricket terminology see List of cricket terms A partnership is a type of Business entity in which partners Arabic (ar الْعَرَبيّة (informally ar عَرَبيْ) in terms of the number of speakers is the largest living member of the Semitic language A limited partnership is a form of Partnership similar to a General partnership, except that in addition to one or more general partners (GPs there are Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating In Economics, capital or capital Goods or real capital refers to items of extensive value Most generally the accumulation of capital refers simply to the gathering or amassment of objects of value the increase in wealth or the creation of wealth Many of these early capitalist ideas were further advanced in medieval Europe from the 13th century onwards. [4][27][28]
Some economic historians (like Peter Temin) argue that the economy of the Early Roman Empire was a market economy and one of the most advanced agricultural economies to have existed (in terms of productivity, urbanization and development of capital markets), comparable to the most advanced economies of the world before the Industrial Revolution, namely the economies of 18th century England and 17th century Netherlands. Economic history is the study of how economic phenomena evolved in the past Dr Peter Temin (born 1937 is a widely cited economist and economic historian currently Elisha Gray II Professor of Economics MIT and former head of the Economics Department The Roman Empire was the post-Republican phase of the ancient Roman civilization, characterised by an autocratic form of government and large territorial A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a The Industrial Revolution was a period in the late 18th and early 19th centuries when major changes in agriculture manufacturing and transportation had a profound effect on the England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands There were markets for every type of good, for land, for cargo ships; there was even an insurance market. [29]
In the period between the late 15th century and the late 18th century the institution of private property was brought into existence in the full, legal meaning of the term. Important contribution to the theory of property is found in the work of John Locke, who argued that the right to private property is a natural right. John Locke (29 August 1632 – 28 October 1704 was an English Philosopher. During the Industrial Revolution much of Europe underwent a thorough economic transformation associated with the rise of capitalism and levels of wealth and economic output in the Western world have risen dramatically since that period.
Over the course of the past five hundred years, capital has been accumulated by a variety of different methods, in a variety of scales, and associated with a great deal of variation in the concentration of economic power and wealth. [5] Much of the history of the past five hundred years is concerned with the development of capitalism in its various forms, its defense and its rejection, particularly by socialists. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution
Mercantilism
The economic and political system of the early modern period (16th to 18th centuries) from which capitalism evolved is commonly described as merchant capitalism or mercantilism[12] (EB). The early modern period is a term initially used by historians to refer mainly to the period roughly from 1500 to 1800 in Western Europe ( Early modern Europe) Mercantilism is the idea that a colony should export more goods than it imports and that a colony should sell at higher prices and buy at lower prices Mercantilism is the idea that a colony should export more goods than it imports and that a colony should sell at higher prices and buy at lower prices This period was associated with geographic discoveries by merchant overseas traders, especially from England and the Low Countries; the European colonization of the Americas; and the rapid growth in overseas trade. The start of the European colonization of the Americas is typically dated to 1492 although there was at least one earlier colonization effort The associated rise of a bourgeoisie class eclipsed the prior feudal system. It is mercantilism that Adam Smith refuted in his Wealth of Nations which is a recognized treatise of capitalist theory.
Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist production methods. [5] Noting the various pre-capitalist features of mercantilism, Karl Polanyi argued that capitalism did not emerge until the establishment of free trade in Britain in the 1830s. Karl Paul Polanyi ( October 25, 1886, Vienna, Austria — April 23, 1964, Pickering Ontario) was a Hungarian Free trade is a system in which the trade of goods and services between or within countries flows unhindered by government-imposed restrictions
Under mercantilism, European merchants, backed by state controls, subsidies, and monopolies, made most of their profits from the buying and selling of goods. Merchants function as professionals who deal with Trade, dealing in commodities that they do not produce themselves in order to produce Profit. In Economics, a subsidy (also known as a subvention is a form of financial assistance paid to a business or economic sector In Economics, a monopoly (from Greek monos, alone or single + polein, to sell exists when a specific individual or enterprise has sufficient In the words of Francis Bacon, the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of the soil; the regulation of prices…"[30] Similar practices of economic regimentation had begun earlier in the medieval towns. Francis Bacon 1st Viscount St Alban KC QC (22 January 1561 – 9 April 1626 was an English Philosopher, Statesman, and author However, under mercantilism, given the contemporaneous rise of absolutism, the state superseded the local guilds as the regulator of the economy. Absolutism is a Historiographical term used to describe a form of monarchical power that is unrestrained by any other institutions such as churches legislatures or social A guild is an association of craftsmen in a particular trade The earliest guilds were formed as confraternities of workers
Among the major tenets of mercantilist theory was bullionism, a doctrine stressing the importance of accumulating precious metals. Bullionism is an Economic Theory that defines Wealth by the amount of Precious metals owned Precious Metal is the eighteenth episode in the of the popular American Crime drama, which is set in Las Vegas, Nevada. Mercantilists argued that a state should export more goods than it imported so that foreigners would have to pay the difference in precious metals. Mercantilists asserted that only raw materials that could not be extracted at home should be imported; and promoted government subsidies, such as the granting of monopolies and protective tariffs, were necessary to encourage home production of manufactured goods. For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary
Proponents of mercantilism emphasized state power and overseas conquest as the principal aim of economic policy. If a state could not supply its own raw materials, according to the mercantilists, it should acquire colonies from which they could be extracted. Colonies constituted not only sources of supply for raw materials but also markets for finished products. Because it was not in the interests of the state to allow competition, held the mercantilists, colonies should be prevented from engaging in manufacturing and trading with foreign powers.
Industrial capitalism and laissez-faire
Mercantilism declined in Great Britain in the mid-18th century, when a new group of economic theorists, led by David Hume[31] and Adam Smith, challenged fundamental mercantilist doctrines as the belief that the amount of the world’s wealth remained constant and that a state could only increase its wealth at the expense of another state. David Hume (26 April 1711 25 August 1776 Scottish Philosopher, Economist, and Historian is an important figure in Western philosophy Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. However, in more undeveloped economies, such as Prussia and Russia, with their much younger manufacturing bases, mercantilism continued to find favor after other states had turned to newer doctrines. Prussia ( Latin: Borussia, Prutenia; Prūsija Prūsija Prusy Old Prussian: Prūsa) was most recently a historic state The Russian Empire ( Pre-reform Russian: Pоссійская Имперія Modern Russian: Российская Империя translit: Rossiyskaya
The mid-18th century gave rise to industrial capitalism, made possible by the accumulation of vast amounts of capital under the merchant phase of capitalism and its investment in machinery. Industrial capitalism, which Marx dated from the last third of the 18th century, marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and the routinization of work tasks; and finally established the global domination of the capitalist mode of production. A factory (previously manufactory) or manufacturing plant is an industrial Building where workers manufacture goods Division of labour or specialization is the specialization of cooperative labour in specific circumscribed tasks and roles intended to increase the Productivity [12]
During the resulting Industrial Revolution, the industrialist replaced the merchant as a dominant actor in the capitalist system and affected the decline of the traditional handicraft skills of artisans, guilds, and journeymen. The Industrial Revolution was a period in the late 18th and early 19th centuries when major changes in agriculture manufacturing and transportation had a profound effect on the An artisan, also called a Craftsman, is a skilled manual worker who crafts items that may be functional or strictly decorative including furniture clothing A guild is an association of craftsmen in a particular trade The earliest guilds were formed as confraternities of workers A journeyman is a trader or crafter who has completed an Apprenticeship. Also during this period, capitalism marked the transformation of relations between the British landowning gentry and peasants, giving rise to the production of cash crops for the market rather than for subsistence on a feudal manor. In Agriculture, a cash crop is a crop which is grown for Money. Feudalism, a term first used in the early modern period (17th century in its most classic sense refers to a Medieval Europe Political system composed This article is about the medieval system "Manors" redirects here The surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture.
The rise of industrial capitalism was also associated with the decline of mercantilism. Mid- to late-nineteenth-century Britain is widely regarded as the classic case of laissez-faire capitalism. Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” [12] Laissez-faire gained favor over mercantilism in Britain in the 1840s with the repeal of the Corn Laws and the Navigation Acts. The Corn Laws were Import tariffs designed to support domestic British corn prices against competition from less expensive foreign-grain imports between 1815 and 1846 The English Navigation Acts were a series of Laws which restricted the use of foreign Shipping and trade between England (later the Kingdom of Great In line with the teachings of the classical political economists, led by Adam Smith and David Ricardo, Britain embraced liberalism, encouraging competition and the development of a market economy. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. David Ricardo (18 April 1772 &ndash 11 September 1823 was an English political economist, often credited with systematizing economics and was one of the most influential Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a
Late 19th and early 20th centuries
In the late 19th century, the control and direction of large areas of industry came into the hands of financiers. This period has been defined as "finance capitalism," characterized by the subordination of processes of production to the accumulation of money profits in a financial system. Finance capitalism is a term in Marxian Political economics defined as the subordination of processes of Production to the accumulation of Money Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated [5] Major characteristics of capitalism in this period included the establishment of large industrial cartels or monopolies; the ownership and management of industry by financiers divorced from the production process; and the development of a complex system of banking, an equity market, and corporate holdings of capital through stock ownership. In Economics, a monopoly (from Greek monos, alone or single + polein, to sell exists when a specific individual or enterprise has sufficient A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money A stock market, or (equity market is a private or public market for the trading of company Stock and derivatives of company Software for Fixed assets management and Stock control developed in 2004. [5] Increasingly, large industries and land became the subject of profit and loss by financial speculators. Speculation, in a financial context is making an investment that increases the overall risk in a portfolio
Late 19th and early 20th century capitalism has also been described as an era of "monopoly capitalism," marked by movement from laissez-faire ideology and government policies to the concentration of capital into large monopolistic or oligopolistic holdings by banks and financiers, and characterized by the growth of large corporations and a division of labor separating shareholders, owners, and managers. The theory of state monopoly capitalism ("Stamocap" or "Stamokap" theory was initially a Marxist doctrine popularised after World War II Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” An oligopoly is a Market form in which a Market or Industry is dominated by a small number of sellers (oligopolists A corporation is a separate legal entity usually used to conduct business A mutual shareholder or stockholder is an Individual or company (including a Corporation) that legally owns one or more shares of [32] Although the concept of monopoly capitalism originated among Marxist theorists,[33] non-Marxist economic historians have also commented on the rise of monopolies and trusts in the period. Murray Rothbard, asserting that the large cartels of the late 19th century could not arise on the free market, argued that the "state monopoly capitalism" of the period was the result of interventionist policies adopted by governments, such as tariffs, quotas, licenses, and partnership between state and big business. Murray Newton Rothbard (March 2 1926 – January 7 1995 was an American economist of the Austrian School who helped define modern Libertarianism [34]
By the last quarter of the 19th century, the emergence of large industrial trusts had provoked legislation in the U. S. to reduce the monopolistic tendencies of the period. Gradually, the U. S. federal government played a larger and larger role in passing antitrust laws and regulation of industrial standards for key industries of special public concern. United States antitrust law is the body of Laws that prohibits anti-competitive behavior (monopoly and Unfair business practices. However, some economic historians believe these new laws were in fact designed to aid large corporations at the expense of smaller competitors. [35] By the end of the 19th century, economic depressions and boom and bust business cycles had become a recurring problem, although such problems were most likely caused by government intervention, not failures in free markets (Rand 1967, Friedman 1962, Bernstein 2005). A recession is a contraction phase of the Business cycle. The U In Economics, the term boom and bust refers to the movement of an economy through Economic cycles. The term business cycle or economic cycle refers to the fluctuations of economic activity during its long term growth trend In particular, the Long Depression of the 1870s and 1880s and the Great Depression of the 1930s affected almost the entire capitalist world, and generated discussion about capitalism’s long-term survival prospects. The Long Depression ( 1873 &ndash 1896) affected much of the world and was contemporary with the Second Industrial Revolution. During the 1930s, Marxist commentators often posited the possibility of capitalism's decline or demise, often in alleged contrast to the ability of the Soviet Union to avoid suffering the effects of the global depression. The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 [36]
After the Great Depression
The economic recovery of the world's leading capitalist economies in the period following the end of the Great Depression and the Second World War — a period of unusually rapid growth by historical standards — eased discussion of capitalism's eventual decline or demise (Engerman 2001). World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including
In the period following the global depression of the 1930s, the state played an increasingly prominent role in the capitalistic system throughout much of the world. In 1929, for example, total U. S. government expenditures (federal, state, and local) amounted to less than one-tenth of GNP; from the 1970s they amounted to around one-third (EB). Similar increases were seen in all industrialized capitalist economies, some of which, such as France, have reached even higher ratios of government expenditures to GNP than the United States. These economies have since been widely described as "mixed economies. A mixed economy is an Economic system that incorporates aspects of more than one economic system "
During the postwar boom, a broad array of new analytical tools in the social sciences were developed to explain the social and economic trends of the period, including the concepts of post-industrial society and the welfare state. A stock exchange, share market or bourse is a Corporation or Mutual organization which provides "trading" facilities for Stock The notion of "trading room" (sometimes used as a synonym of " Trading floor " is widely used in Financial markets to refer to the Office space A post-industrial society is a society in which an economic transition has occurred from a manufacturing based economy to a service based economy, a diffusion This article refers specifically to the Welfare state of the United Kingdom. [12] The phase of capitalism from the beginning of the postwar period through the 1970s has sometimes been described as “state capitalism”, especially by Marxian thinkers. State capitalism, in its classic meaning is a private capitalist economy under State control [14]
The long postwar boom ended in the late 1960s and early 1970s, and the situation was worsened by the rise of stagflation. Stagflation is an economic situation in which Inflation and Economic stagnation occur simultaneously and remain unchecked for a period of time [37] Exceptionally high inflation combined with slow output growth, rising unemployment, and eventually recession caused loss of credibility of Keynesian welfare-statist mode of regulation. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time A recession is a contraction phase of the Business cycle. The U In Economics Keynesian economics (ˈkeɪnziən also Keynesianism and Keynesian Theory) is based on the ideas of twentieth-century British economist Under the influence of Friedrich Hayek and Milton Friedman, Western states embraced policy prescriptions inspired by the laissez-faire capitalism and classical liberalism. Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Classical liberalism (also known as traditional liberalism, Laissez-faire liberalism, Market liberalism or in much of the world In particular, monetarism, a theoretical alternative to Keynesianism that is more compatible with laissez-faire, gained increasing prominence in the capitalist world, especially under the leadership of Ronald Reagan in the U. Monetarism is a school of economic thought concerning the determination of national income and monetary Economics. S. and Margaret Thatcher in the UK in the 1980s. Margaret Hilda Thatcher Baroness Thatcher LG, OM, PC, FRS (born 13 October 1925 In the eyes of many economic and political commentators, collapse of the Soviet Union brought further evidence of superiority of market capitalism over state-centered economic systems. The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991
Globalization
Although overseas trade has been associated with the development of capitalism for over five hundred years, some thinkers argue that a number of trends associated with globalization have acted to increase the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development. Globalization (or globalisation) in its literal sense is the process of transformation of local or regional phenomena into global ones Globalization (or globalisation) in its literal sense is the process of transformation of local or regional phenomena into global ones Today, these trends have bolstered the argument that capitalism should now be viewed as a truly world system. [12] However, other thinkers argue that globalization, even in its quantitative degree, is no greater now than during earlier periods of capitalist trade. [38]
After the abandonment of the Bretton Woods system and the strict state control of foreign exchange rates, the total value of transactions in foreign exchange was estimated to be at least twenty times greater than that of all foreign movements of goods and services (EB). The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states The internationalization of finance, which some see as beyond the reach of state control, combined with the growing ease with which large corporations have been able to relocate their operations to low-wage states, has posed the question of the 'eclipse' of state sovereignty, arising from the growing 'globalization' of capital. [39]
Economic growth in the last half-century has been consistently strong. Life expectancy has almost doubled in the developing world since the postwar years and is starting to close the gap on the developed world where the improvement has been smaller. Life expectancy is the average number of years of life remaining at a given age Infant mortality has decreased in every developing region of the world. Infant mortality is defined as the number of deaths of Infants (one year of age or younger per 1000 live births [40] While scientists generally agree about the size of global income inequality, there is a general disagreement about the recent direction of change of it. Economic inequality refers to disparities in the distribution of Economic Assets and Income. [41] However, it is growing within particular nations such as China. [42] The book The Improving State of the World argues that economic growth since the industrial revolution has been very strong and that factors such as adequate nutrition, life expectancy, infant mortality, literacy, prevalence of child labor, education, and available free time have improved greatly. The Improving State of the World Why We're Living Longer Healthier More Comfortable Lives On a Cleaner Planet is a 2007 book by Indur M Nutrition (also called nourishment or aliment) is the provision to cells and Organisms of the materials necessary (in the form of food to support Life expectancy is the average number of years of life remaining at a given age Infant mortality is defined as the number of deaths of Infants (one year of age or younger per 1000 live births traditional definition of literacy is considered to be the ability to read and write or the ability to use Language to read, write, listen, Child labor is the employment of Children at regular and sustained labour Education encompasses both the Teaching and Learning of Knowledge, proper conduct, and technical competency
Political advocacy
Support
Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living. Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities such as factories and machinery The standard of living refers to the quality and quantity of goods and services available to people and the way these goods and services are distributed within a population This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price, and allocate resources. Adam Smith ( baptised 16 June 1723 – 17 July 1790) was a Scottish moral philosopher and a pioneer of Political economy. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system. [44][45] While the measurements are not identical, proponents argue that increasing GDP (per capita) is empirically shown to bring about improved standards of living, such as better availability of food, housing, clothing, and health care. [46] The decrease in the number of hours worked per week and the decreased participation of children and the elderly in the workforce have been attributed to capitalism. [47][48][49][50] Proponents also believe that a capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. To their thinking, this potential is much greater than in either traditional feudal or tribal societies or in socialist societies. Feudalism, a term first used in the early modern period (17th century in its most classic sense refers to a Medieval Europe Political system composed A tribe, viewed historically or developmentally consists of a Social group existing before the development of or outside of States Many anthropologists use
Milton Friedman has argued that the economic freedom of competitive capitalism is a requisite of political freedom. Milton Friedman (July 31 1912 November 16 2006 was an American Nobel Laureate Economist and Public intellectual. Economic freedom is freedom to produce trade and consume any goods and services acquired without the use of force fraud or theft Political freedom is the absence of interference with the sovereignty of an individual by the use of coercion or aggression Friedman argued that centralized control of economic activity is always accompanied by political repression. In his view, transactions in a market economy are voluntary, and the wide diversity that voluntary activity permits is a fundamental threat to repressive political leaders and greatly diminish power to coerce. Friedman's view was also shared by Friedrich Hayek and John Maynard Keynes, both of whom believed that capitalism is vital for freedom to survive and thrive. Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist John Maynard Keynes 1st Baron Keynes CB (ˈkeɪnz "cains" (5 June 1883 &ndash 21 April 1946 was a British Economist whose ideas [51][52]
Austrian School economists have argued that capitalism can organize itself into a complex system without an external guidance or planning mechanism. Friedrich Hayek coined the term "catallaxy" to describe what he considered the phenomenon of self-organization underpinning capitalism. Catallactics is the praxeological theory of the way the Free market system reaches Exchange ratios and Prices It aims to analyse all actions Self-organization is a process of Attraction and repulsion in which the internal organization of a System, normally an open system, increases From this perspective, in process of self-organization, the profit motive has an important role. From transactions between buyers and sellers price systems emerge, and prices serve as a signal as to the urgent and unfilled wants of people. The promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Thus the activities of millions of people, each seeking his own interest, are coordinated. [53]
This decentralized system of coordination is viewed by some supporters of capitalism as one of its greatest strengths. They argue that it permits many solutions to be tried, and that real-world competition generally finds a good solution to emerging challenges. In contrast, they argue, central planning often selects inappropriate solutions as a result of faulty forecasting. A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. However, in all existing modern economies, the state conducts some degree of centralized economic planning (using such tools as allowing the country's central bank to set base interest rates), ostensibly as an attempt to improve efficiency, attenuate cyclical volatility, and further particular social goals. A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets Proponents who follow the Austrian School argue that even this limited control creates inefficiencies because we cannot predict the long-term activity of the economy. Milton Friedman, for example, has argued that the Great Depression was caused by the erroneous policy of the Federal Reserve. [24]
Ayn Rand was a prominent philosophical supporter of laissez-faire capitalism; her novel Atlas Shrugged was one of the most influential publications ever written on the subject of business. Ayn Rand (ˈaɪn ˈrænd &ndash March 6 1982 born Alisa Zinov'yevna Rosenbaum (Алиса Зиновьевна Розенбаум was a Russian born American Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” Atlas Shrugged is a novel by Ayn Rand, first published in 1957 in the United States [54] The first person to endow capitalism with a new code of morality (Rational Selfishness),[55] she did not justify capitalism on the grounds of pure "practicality" (that it is the best wealth-creating system), or the supernatural (that God or religion supports capitalism), or because it benefits the most people, but maintained that it is the only morally valid socio-political system because it allows people to be free to act in their rational self-interest. Selfishness denotes the precedence given in thought or deed to the Self, i The term supernatural or supranatural ( Latin: super, supra "above" + natura "nature" pertains to entities events God is the principal or sole Deity in Religions and other belief systems that worship one deity. A religion is a set of Tenets and practices often centered upon specific Supernatural and moral claims about Reality, the Cosmos Political sociology is the study of power and the intersection of personality social structure and Politics. [56]
Criticism
Capitalism has met with strong opposition throughout its history. Capitalism has been critiqued from many perspectives during its history Anti-capitalism describes a wide variety of movements ideas and attitudes which oppose Capitalism. Most of the criticism came from the left, but some from the right, and some from religious elements. Many 19th century conservatives were among the most strident critics of capitalism, seeing market exchange and commodity production as threats to cultural and religious traditions. Some critics of capitalism consider economic regulation necessary in order to reduce corruption, negligence, and numerous of other problems caused by free markets.
Prominent leftist critics have included socialists like Karl Marx, Frantz Fanon, Vladimir Lenin, Mao Zedong, Leon Trotsky, Antonio Gramsci and Rosa Luxemburg, and anarchists including Benjamin Tucker, Lysander Spooner, Pierre-Joseph Proudhon, Mikhail Bakunin, Peter Kropotkin, Emma Goldman, Murray Bookchin, Rudolf Rocker, Noam Chomsky, and others. Socialism refers to a broad set of economic theories of social organization advocating state or collective ownership and administration of the Means of production and distribution Frantz Fanon ( July 20, 1925 – December 6, 1961) was a Psychiatrist, philosopher, revolutionary and author from Mao Zedong ( 26 December 1893 – 9 September 1976) was a Chinese Military and political leader who led Leon Trotsky ( Russian:, Lev Davidovich Trotsky, also transliterated Leo, Lyev, Trotskii, Trotski, Trotskij Antonio Gramsci ('ɡramʃi ( January 23, 1891 &ndash April 27, 1937) was an Italian Philosopher, Writer, Rosa Luxemburg (Róża Luksemburg 5 March 1870 or 1871 15 January 1919 was a Polish-born Jewish German Marxist theorist, socialist Anarchism is a Political philosophy encompassing theories and attitudes which support the elimination of all compulsory Government, i Benjamin Ricketson Tucker ( April 17, 1854 &ndash June 22, 1939) was a leading proponent of American Individualist anarchism Pierre-Joseph Proudhon (ˈpruːd ɒn in British English, dɔ̃ in French) ( 15 January 1809 – 19 January 1865) was Mikhail Alexandrovich Bakunin ( - July 1 1876) was a well-known Russian Revolutionary and theorist of Collectivist anarchism. Emma Goldman (June 27 1869 – May 14 1940 was an anarchist known for her political activism writing and speeches Murray Bookchin ( January 14, 1921 – July 30, 2006) was an American libertarian socialist, political and social Johann Rudolf Rocker ( March 25, 1873 September 19, 1958) was an anarcho-syndicalist writer and activist Avram Noam Chomsky (noʊm ˈtʃɑmski born December 7 1928 is an American linguist, Philosopher, cognitive scientist, Political Movements like the Luddites, Narodniks, Shakers, Utopian Socialists and others have opposed capitalism for various reasons. The Luddites were a Social movement of British Textile artisans in the early Nineteenth century who protested&mdashoften by destroying mechanized Narodniks (Народничество was the name for Russian revolutionaries of the 1860s and 1870s The United Society of Believers in Christ’s Second Appearing, known as the Shakers, was a Protestant religious denomination that originated in Manchester Utopian socialism is a term used to define the first currents of modern socialist thought Marxism advocated a revolutionary overthrow of capitalism that would lead eventually to communism. Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based Marxism also influenced social democratic and labour parties, which seek change through existing democratic channels instead of revolution, and believe that capitalism should be heavily regulated rather than abolished. Social democracy is a Political ideology of the left and centre-left Many aspects of capitalism have come under attack from the relatively recent anti-globalization movement. " Anti-globalization " is a term that encompasses a number of related ideas
Some religions criticize or outright oppose specific elements of capitalism. Some traditions of Judaism, Christianity, and Islam forbid lending money at interest, although methods of Islamic banking have been developed. Judaism (from the Greek Ioudaïsmos, derived from the Hebrew יהודה Yehudah, " Judah " in Hebrew יַהֲדוּת Yahedut Christianity ( Greek Χριστιανισμός from the word Xριστός ( Christ)is a monotheistic Religion centered on the life and teachings For other meanings including people named 'Islam' see Islam (disambiguation. Usury (ˈjuːʒəri comes from the Medieval Latin usuria, "interest" or "excessive interest" from the Latin usura "interest" Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law ( Sharia) principles and guided by Islamic economics Christianity has been a source of both praise and criticism for capitalism, particularly its materialist aspects. This article addresses materialism in the economic sense of the word [57] The first socialists drew many of their principles from Christian values (see Christian socialism), against "bourgeois" values of profiteering, greed, selfishness, and hoarding. Christian socialism generally refers to those on the Christian left whose politics are both Christian and Socialist and who see these two philosophies as Christian critics of capitalism may not oppose capitalism entirely, but support a mixed economy in order to ensure adequate labor standards and relations, as well as economic justice. There are many Protestant denominations (particularly in the United States) who have reconciled with — or are ardently in favor of — capitalism, particularly in opposition to secular socialism. Protestantism refers to the forms of Christian faith and practice that originated in the 16th century Protestant Reformation. However, in the U. S. and around the world there are many Protestant Christian traditions which are critical of, or even oppose, capitalism. Another critic is the Indian philosopher P.R. Sarkar, founder of the Ananda Marga movement, who developed the Social Cycle Theory and proposed a solution called the Progressive Utilization Theory (PROUT). Prabhat Ranjan Sarkar (May 21 1921 &ndash October 21 1990 also known by his spiritual name Shrii Shrii Anandamurti, was an Indian philosopher author social Ananda Marga, officially known as Ananda Marga Pracharaka Samgha (AMPS meaning "the organization for the propagation of the path of bliss " is Prabhat Ranjan Sarkar (May 21 1921 &ndash October 21 1990 also known by his spiritual name Shrii Shrii Anandamurti, was an Indian philosopher author social Prabhat Ranjan Sarkar (May 21 1921 &ndash October 21 1990 also known by his spiritual name Shrii Shrii Anandamurti, was an Indian philosopher author social [58][59]
Some problems said to be associated with capitalism include: unfair and inefficient distribution of wealth and power; a tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism and various forms of economic and cultural exploitation; and phenomena such as social alienation, inequality, unemployment, and economic instability. Distribution of wealth is a comparison of the Wealth of various members or groups in a Society, and is one aspect of the Economy and Social structure In Economics, a monopoly (from Greek monos, alone or single + polein, to sell exists when a specific individual or enterprise has sufficient An oligopoly is a Market form in which a Market or Industry is dominated by a small number of sellers (oligopolists Oligarchy' ( Greek, Oligarkhía) is a Form of government where Political power effectively rests with a small elite segment Imperialism has two meanings one describing an action and the other describing an attitude The term " exploitation " may carry two distinct meanings The act of utilizing something for any purpose In Sociology and Critical social theory, alienation refers to an individual's estrangement from traditional community and others in general In Mathematics, an inequality is a statement about the relative size or order of two objects or about whether they are the same or not (See also equality Unemployment occurs when a person is available to work and currently seeking work but the person is without work. Critics have maintained that there is an inherent tendency towards oligolopolistic structures when laissez-faire is combined with capitalist private property. Because of this tendency either laissez-faire, or private property, or both, have drawn fire from critics who believe an essential aspect of economic freedom is the extension of the freedom to have meaningful decision-making control over productive resources to everyone. Economist Branko Horvat explains, "it is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom. "[60]
Near the start of the 20th century, Vladimir Lenin claimed that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism. [61] This concept of political economy concerning the relationship between economic and political power among and within states includes critics of capitalism who assign to it responsibility for not only economic exploitation, but imperialist, colonialist and counter-revolutionary wars, repressions of workers and trade unionists, genocides, massacres, and so on. Political economy originally was the term for studying production buying and selling and their relations with law custom and government The term " exploitation " may carry two distinct meanings The act of utilizing something for any purpose Imperialism has two meanings one describing an action and the other describing an attitude See Colony and Colonization for examples of colonialism which do not refer to Western colonialism A counter-revolutionary is anyone who opposes a Revolution, particularly those who act after a revolution to try to overturn or reverse it in full or in part Genocide is the deliberate and systematic destruction in whole or in part of an ethnic racial religious or national group
Some environmentalists claim that capitalism requires continual economic growth, and will inevitably deplete the finite natural resources of the earth, and other broadly utilized resources. Such thinkers, including Murray Bookchin, have argued that capitalist production passes on environmental costs to all of society, and is unable to adequately mitigate its impact upon ecosystems and the biosphere at large. Murray Bookchin ( January 14, 1921 – July 30, 2006) was an American libertarian socialist, political and social
Some labor historians and scholars, such as Immanuel Wallerstein, Tom Brass and, latterly Marcel van der Linden, have also argued that unfree labor — the use of a labor force comprised of slaves, indentured servants, criminal convicts, political prisoners, and/or other coerced persons — is compatible with capitalist relations. Immanuel Maurice Wallerstein (born 28 September 1930, New York City) is a U Unfree labour is a generic or collective term for those work relations especially in modern or early modern history in which people are employed against their will As a social-economic system slavery is a legal institution under which a Person (called "a slave" is compelled to work for another An indentured servant is a form of Debt bondage worker The Laborer is under Contract of an Employer for some period of time usually three to [62]
Democracy, the state, and legal frameworks
The relationship between the state, its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. A state is a political association with effective Sovereignty over a geographic Area and representing a Population. Hernando de Soto is a contemporary economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in a formal property system where ownership and transactions are clearly recorded. Hernando de Soto (born 1941 - 06-02) is a Peruvian Economist known for his work on the Informal economy and on the importance of [63] According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the Enclosure Acts in England, and similar legislation elsewhere, were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to the development of capitalism. The Inclosure Acts were a series of United Kingdom Acts of Parliament which enclosed open fields and Common land in the country England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland Primitive Accumulation of capital is a concept introduced by Karl Marx in part 8 of the first volume of Das Kapital (in German ursprüngliche Akkumulation [64][65]
New institutional economics, a field pioneered by Douglass North, stresses the need of capitalism for a legal framework to function optimally, and focuses on the relationship between the historical development of capitalism and the creation and maintenance of political and economic institutions. New institutional economics (NIE is an Economic perspective that attempts to extend economics by focusing on the social and Legal norms and Douglass Cecil North (born November 5, 1920) was the co-recipient (with Robert William Fogel) of the 1993 Nobel Memorial Prize in Economic Sciences [66] In new institutional economics and other fields focusing on public policy, economists seek to judge when and whether governmental intervention (such as taxes, welfare, and government regulation) can result in potential gains in efficiency. Welfare is financial assistance paid to people by governments Regulatory economics is the Economics of Regulation, in the sense of the application of Law by Government According to Gregory Mankiw, a New Keynesian economist, governmental intervention can improve on market outcomes under conditions of "market failure," or situations in which the market on its own does not allocate resources efficiently. Nicholas Gregory "Greg" Mankiw (mæŋˈkjuː (born February 3, 1958) is an American macroeconomist. New Keynesian economics is a school of contemporary Macroeconomics that strives to provide microeconomic foundations for Keynesian economics. Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. [67] The idea of market failure is that markets fail to realize all potential gains from trade. This means that markets fail to deliver perfect economic results. Critics of market failure theory, like Ronald Coase, Harold Demsetz, and James M. Buchanan argue that government programs and policies also fall short of absolute perfection. Ronald Harry Coase (born December 29, 1910) is a British Economist and the Clifton R Harold Demsetz (born 1930 Chicago Illinois) is a professor Emeritus of Economics at the University of California at Los Angeles (UCLA James McGill Buchanan Jr (born October 3 1919 is an American Economist renowned for his work on Public choice theory, for which he won the 1986 Market failures are often small, and government failures are sometimes large. It is therefore the case that imperfect markets are often better than imperfect governmental alternatives. While all nations currently have some kind of market regulations, the desirable degree of regulation is disputed.
The relationship between democracy and capitalism is a contentious area in theory and popular political movements. Democracy is a form of government in which the supreme power is held completely by the people under a free electoral system The extension of universal adult male suffrage in 19th century Britain occurred along with the development of industrial capitalism, and democracy became widespread at the same time as capitalism, leading many theorists to posit a causal relationship between them, or that each affects the other. Suffrage (from the Latin suffragium, meaning "voting tablet" and figuratively "right to vote" probably from suffrago "hough" and originally However, in the 20th century, according to some authors, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, monarchies, and single-party states,[12] while it has been observed that some ostensibly democratic regimes such as the Bolivarian Republic of Venezuela and Anarchist Catalonia have been expressly anti-capitalist. Fascism is a totalitarian nationalist and corporatist ideology Venezuela (ˌvɛnəˈzweɪlə) officially the Bolivarian Republic of Venezuela (Spanish República Bolivariana de Venezuela) is a country on the Anarchist Catalonia ( July 21, 1936 – February 10, 1939) was the self-proclaimed Stateless territory and Anarchist [68] While some thinkers argue that capitalist development more-or-less inevitably eventually leads to the emergence of democracy, others dispute this claim. Research on the democratic peace theory further argue that capitalist democracies rarely make war with one another and have little internal violence. The democratic peace theory (or liberal peace theory or simply the democratic peace) holds that democracies &mdash usually liberal democracies [69][70] However critics of the democratic peace theory note that democratic capitalist states may fight infrequently or never with other democratic capitalist states because of Political similarity or political stability rather than because they are democratic (or capitalist).
Some commentators argue that though economic growth under capitalism has led to democratization in the past, it may not do so in the future. Under this line of thinking, authoritarian regimes have been able to manage economic growth without making concessions to greater political freedom. [71][72]
In response to criticism of the system, some proponents of capitalism have argued that its advantages are supported by empirical research. For example, advocates of different Index of Economic Freedom point to a statistical correlation between nations with more economic freedom (as defined by the Indices) and higher scores on variables such as income and life expectancy, including the poor in these nations. The Index of Economic Freedom is a series of 10 economic measurements created by the Wall Street Journal and The Heritage Foundation to measure the degree of Economic freedom Some peer-reviewed studies find evidence for causation.
Related articles
- Anarcho-capitalism
- Crony capitalism
- Definitions of capitalism
- Economic ideology
- Late capitalism
- Liberal capitalism
- Objectivism (Ayn Rand)
- Post-capitalism
- Technocapitalism
- State capitalism
Notes
- ^ Screms, John (2004). Anarcho-capitalism (also known as Free-market anarchism) is an individualist anarchist Political philosophy that advocates the elimination Crony capitalism is a pejorative term describing an allegedly capitalist economy in which success in business depends on close relationships between businessmen and government Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where An economic ideology discerns itself from a pure Economic theory because it is normative rather than just explanatory in its approach In his work Late Capitalism Ernest Mandel argues for three periods in the development of Capitalism. Economic liberalism is the Economic component of Classical liberalism. Objectivism is a Philosophy developed by Ayn Rand in the 20th century that encompasses positions on Metaphysics, Epistemology, Post-capitalism refers to any hypothetical future Economic system which are proposed to replace Capitalism as the dominant economic system Technocapitalism (a Portmanteau word combining " Technology " and " Capitalism," two of the most commonly used words in the Social State capitalism, in its classic meaning is a private capitalist economy under State control Understanding Principles of Politics and the State. PageFree Publishing, 234.
- ^ Obrinsky, Mark (1983). Profit Theory and Capitalism. University of Pennsylvania Press, 1.
- ^ a b (2006) Capitalism. Encyclopedia Britannica.
- ^ a b Banaji, Jairus (2007). "Islam, the Mediterranean and the rise of capitalism". Journal Historical Materialism 15: 47-74. Brill Publishers.
- ^ a b c d e f g Scott, John (2005). Industrialism: A Dictionary of Sociology. Oxford University Press.
- ^ Tucker, Irvin B. (1997). Macroeconomics for Today, 553.
- ^ Case, Karl E. (2004). Principles of Macroeconomics. Prentice Hall.
- ^ Hunt, E. K. (2002). History of Economic Thought: A Critical Perspective. M. E. Sharpe, 92.
- ^ (1991) Blackwell Encyclopedia of Political Thought. Blackwell Publishing, 91.
- ^ Skousen, Mark (2001). The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M. E. Sharpe, 98-102.
- ^ Calhoun, Craig (2002). Capitalism: Dictionary of the Social Sciences. Oxford University Press.
- ^ a b c d e f g h Burnham, Peter (2003). Capitalism: The Concise Oxford Dictionary of Politics. Oxford University Press.
- ^ Karl Marx. Capital. v. 3. Chapter 47: Genesis of capitalist ground rent. Marxists. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ a b Early proponents of the term "state capitalism" include, for example, Tony Cliff, Raya Dunayevskaya, CLR James and Paul Mattick. Tony Cliff ( May 20, 1917 – May 9, 2000) was a Trotskyist Revolutionary Activist. Raya Dunayevskaya ( 1 May 1910 &ndash 9 June 1987) was the founder of the Philosophy of Marxist Humanism in the United Cyril Lionel Robert James ( 4 January 1901 &ndash 19 May 1989) was an Afro- Trinidadian Journalist Paul Mattick ( 13 March 1904 – 7 February 1981) was a Marxist political writer and activist Ernest Mandel has been a particularly prominent advocate of the analysis of post-WWII conditions as state capitalism. Ernest Ezra Mandel, also known by various pseudonyms such as Ernest Germain, Pierre Gousset, Henri Vallin, Walter etc State capitalism, in its classic meaning is a private capitalist economy under State control (See, for example, Mandel's The Theory of “State Capitalism”. Ernest Mandel (1951-06-01). The Theory of “State Capitalism”. Archived from the original on 2006-10-02. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Events 1187 - Siege of Jerusalem: Saladin captures Jerusalem after 88 years of Crusader rule Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Imperialism, the Highest Stage of Capitalism. Marxists (1916). Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Lewis, Herbert S. (1998). "The Misrepresentation of Anthropology and its Consequences". American Anthropologist 100: 716-731.
- ^ See, for example, the works of Stephen Resnick and Richard Wolff.
- ^ Ste. Croix, G. E. M. de (1982). The Class Struggle in the Ancient Greek World.
- ^ Kilcullen, John (1996). MAX WEBER: ON CAPITALISM. Macquarie University. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ The Spirit of Capitalism. University of Virginia. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ [www. economyandsociety. com/events/Ethic&SpiritCapsm_Conf_Agenda2. pdf Conference Agenda]. Economy and Society. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Paul Mattick. Marx and Keynes: the limits of the mixed economy. Marxists. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Felderer, Bernhard. Macroeconomics and New Macroeconomics.
- ^ a b Ben Bernanke (2002-11-08). See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. Events 1519 - Hernán Cortés enters Tenochtitlán and Aztec ruler Moctezuma welcomes him with great a Celebration Remarks by Governor Ben S. Bernanke. The Federal Reserve Board. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Yonary, Yuval P. (1998). The Struggle Over the Soul of Economics. Princeton University Press, 29. ISBN 0691034192.
- ^ Partnership and Profit in Medieval Islam by Abraham L. Udovitch
- ^ Shatzmiller, Maya (1994). Labour in the Medieval Islamic World. Brill Publishers, 402-403. ISBN 9004098968.
- ^ Labib, Subhi Y. (1969). "Capitalism in Medieval Islam". The Journal of Economic History 29: 79-96.
- ^ A Market Economy in the Early Roman Empire
- ^ Clark, Sir George (1961). The Seventeenth Century. New York: Oxford University Press, 24.
- ^ Hume, David (1752). Political Discourses. Edinburgh: A. Kincaid & A. Donaldson.
- ^ Scott, John (2005). A Dictionary of Sociology. Oxford University Press.
- ^ Charlene Gannage (1980). "E. S. Varga and the Theory of State Monopoly Capitalism". Review of Radical Political Economics 12 (3): 36-49. doi:. A digital object identifier ( DOI) is a permanent identifier given to an Electronic document.
- ^ Stromberg, Joseph R. (2001). "The Role of State Monopoly Capitalism in the American Empire". Journal of Libertarian Studies 15 (3): 74-75.
- ^ Rothbard, Murray. A History of Money and Banking in the United States: The Colonial Era to World War II, 185-186.
- ^ Engerman, Stanley L. (2001). The Oxford Companion to United States History. Oxford University Press.
- ^ Barnes, Trevor J. . Reading economic geography. Blackwell Publishing, 127. ISBN 063123554X.
- ^ Henwood, Doug (2003-10-01). After the New Economy. New Press. ISBN 1-56584-770-9.
- ^ Evans, Peter (1997-10-01). "The Eclipse of the State? Reflections on Stateness in an Era of Globalization". World Politics 50 (1): 62-87.
- ^ Pfefferman, Guy (2002-04-19). See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. Events 1012 - Martyrdom of Alphege in Greenwich London. 1529 - At the Second Diet of Speyer The Eight Losers of Globalization. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Milanovic, Branko (2006-08-01). "Global Income Inequality: What It Is And Why It Matters?". DESA Working Paper 26: 9.
- ^ Brooks, David (2004-11-27). "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Events 1095 - Pope Urban II declares the First Crusade at the Council of Clermont Good News about Poverty. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Angus Maddison (2001). The World Economy: A Millennial Perspective. Paris: OECD. ISBN 92-64-18998-X.
- ^ Robert E. Lucas Jr. . The Industrial Revolution: Past and Future. Federal Reserve Bank of Minneapolis 2003 Annual Report. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ J. Bradford DeLong. Estimating World GDP, One Million B.C. – Present. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Clark Nardinelli. Industrial Revolution and the Standard of Living. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Barro, Robert J. (1997). Macroeconomics. MIT Press. ISBN 0262024365.
- ^ Labor and Minimum Wages. Capitalism. org. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Woods, Thomas E. (2004-04-05). "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Events 456 - St Patrick returns to Ireland as a missionary bishop Morality and Economic Law: Toward a Reconciliation. Ludwig von Mises Institute. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Norberg, Johan. Three Cheers for Global Capitalism. The American Enterprise. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Friedrich Hayek (1944). The Road to Serfdom. University Of Chicago Press. ISBN 0-226-32061-8.
- ^ Bellamy, Richard (2003). The Cambridge History of Twentieth-Century Political Thought. Cambridge University Press, 60. ISBN 0-521-56354-2.
- ^ Walberg, Herbert (2001). Education and Capitalism. Hoover Institution Press, 87-89. ISBN 0-8179-3972-5.
- ^ Ayn Rand's Literature of Capitalism, The New York Times
- ^ The Virtue of Selfishness
- ^ Capitalism: The Unknown Ideal
- ^ III. The Social Doctrine of the Church. The Virtue of Selfishness A New Concept of Egoism is a 1964 collection of Essays and papers by Ayn Rand and Nathaniel Branden. Capitalism The Unknown Ideal is one of Ayn Rand 's Non-fiction work a collection of essays regarding the moral nature of Laissez-faire The Vatican. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Dada Maheshvarananda. After Capitalism. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ proutworld. ProutWorld. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Horvat, B. . The Political Economy of Socialism. Armonk, NY: M. E. Sharpe Inc. , 11.
- ^ Vladimir Lenin. Imperialism: The Highest Stage of Capitalism. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ That unfree labor is acceptable to capital was argued during the 1980s by Tom Brass. See Towards a Comparative Political Economy of Unfree Labor (Cass, 1999). Marcel van der Linden. "Labour History as the History of Multitudes", Labour/Le Travail, 52, Fall 2003, p. 235-244. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Hernando de Soto. The mystery of capital. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Karl Marx. Capital, v. 1. Part VIII: primitive accumulation. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ N. F. R. Crafts (April 1978). "Enclosure and labor supply revisited". Explorations in economic history (15): 172–183. .
- ^ North, Douglass C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
- ^ (1997) Principles of Economics. Harvard University, 10.
- ^ On the democratic nature of the Venezuelan state, see [1]. On the current government's rejection of capitalism in favor of socialism, see[2] and[3]
- ^ James Lee Ray. Does democracy cause peace. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Hegre, Håvard. Towards a democratic civil peace? : opportunity, grievance, and civil war 1816-1992. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Mesquita, Bruce Bueno de (2005-09). Development and Democracy. Foreign Affairs. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
- ^ Single, Joseph T. (2004-09). Why Democracies Excel. New York Times. Retrieved on 2008-02-26. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 747 BC - Epoch (origin of Ptolemy 's Nabonassar Era 364 - Valentinian I is proclaimed
Further Reading
- Ackerman, Frank; Lisa Heinzerling (August 24, 2005). Priceless: On Knowing the Price of Everything and the Value of Nothing. New Press, 277. ISBN 1565849817.
- Buchanan, James M. . Politics Without Romance.
- Braudel, Fernand. Civilization and Capitalism: 15th - 18 Century.
- Bottomore, Tom (1985). Theories of Modern Capitalism.
- H. Doucouliagos and M. Ulubasoglu (2006). "Democracy and Economic Growth: A meta-analysis". School of Accounting, Economics and Finance Deakin University Australia.
- Coase, Ronald (1974). The Lighthouse in Economics.
- Demsetz, Harold (1969). Information and Efficiency.
- Fulcher, James (2004). Capitalism.
- Friedman, Milton (1952). Capitalism and Freedom.
- Galbraith, J. K. (1952). American Capitalism.
- Böhm-Bawerk, Eugen von (1890). Capital and Interest: A Critical History of Economical Theory. London: Macmillan and Co. .
- Harvey, David (1990). The Political-Economic Transformation of Late Twentieth Century Capitalism. . Cambridge, MA: Blackwell Publishers. ISBN 0-631-16294-1.
- Hayek, Friedrich A. (1975). The Pure Theory of Capital. Chicago: University of Chicago Press. ISBN 0-226-32081-2.
- Hayek, Friedrich A. (1963). Capitalism and the Historians. Chicago: University of Chicago Press.
- Heilbroner, Robert L. (1966). The Limits of American Capitalism.
- Heilbroner, Robert L. (1985). The Nature and Logic of Capitalism.
- Heilbroner, Robert L. (1987). Economics Explained.
- Marx, Karl (1886). Capital: A Critical Analysis of Capitalist Production.
- Mises, Ludwig von (1998). Human Action: A Treatise on Economics. Scholars Edition.
- Rand, Ayn (1986). Capitalism: The Unknown Ideal. Signet.
- Reisman, George (1996). Capitalism: A Treatise on Economics. Ottawa, Illinois: Jameson Books. ISBN 0-915463-73-3.
- Resnick, Stephen (1987). Knowledge & Class: a Marxian critique of political economy. Chicago: University of Chicago Press.
- Rostow, W. W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press.
- Schumpeter, J. A. (1983). Capitalism, Socialism, and Democracy.
- Scott, John (1997). Corporate Business and Capitalist Classes.
- seldon, Arthur (2007). Capitalism: A Condensed Version. London: Institute of Economic Affairs.
- Sennett, Richard (2006). The Culture of the New Capitalism.
- Smith, Adam (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.
- De Soto, Hernando (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books. ISBN 0-465-01614-6.
- Strange, Susan (1986). Casino Capitalism.
- Wallerstein, Immanuel. The Modern World System.
- Weber, Max (1926). The Protestant Ethic and the Spirit of Capitalism.
- Norberg, Johan (2001). In Defense of Global Capitalism. ISBN 978-1-93-086547-1.
External links
Dictionary
capitalism
-noun
- (politics, uncountable) a socio-economic system based on private property rights, including the private ownership of resources or capital, with economic decisions made largely through the operation of a free market rather than by state control.
- (economics, uncountable) a socio-economic system based on the abstraction of resources into the form of capital, whether privately or state owned and regulated.
- (countable) a specific variation or implementation of either such socio-economic system
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