Capitalism
Capitalism is an economic system characterized by private ownership of the means of production and the pursuit of profit. In a capitalist system, the market largely determines prices, production, and distribution of goods and services. Competition and the profit motive are key drivers, and the role of government is typically limited to regulating the market and enforcing contracts.
5 Key excerpts on "Capitalism"
eBook - ePubPhilosophy of Education
An Encyclopedia
- J.J. Chambliss(Author)
- 2013(Publication Date)
- Routledge(Publisher)
...Capitalism Tibor R. Machan DOI: 10.4324/9780203054253-31 Capitalism is the political economic system in which the institution of the right to private property—that is, to own anything of value (not, of course, other human beings, who are themselves owners)—is fully respected. There is dispute about the label, of course, mostly because its definition is often a precondition of having either a favorable or unfavorable view of the system. By itself, Capitalism is an economic arrangement of an organized human community or policy. Often, however, entire societies are called capitalist, mainly to stress their thriving commerce and industry. More rigorously understood, however, Capitalism presupposes a type of legal order governed by the rule of law in which the principle of private property rights plays a central role. Such a system of laws is usually grounded on classical liberal ideals in political thinking. These ideals may incorporate positivism, utilitarianism, natural rights theory and individualism, as well as notions about the merits of laissez-faire (no government interference in commerce), the “invisible hand “(as a principle of spontaneous social organization), prudence and industriousness (as significant virtues), the price system as distinct from central planning (for registering supply and demand), and so forth. Put a bit differently, Capitalism is the term used to mean that feature of a human community whereby citizens are understood to have the basic right to make their own (more or less wise or prudent) decisions concerning what they will do with their labor and property, whether they will engage in trade with one another involving nearly anything they may value. Thus Capitalism includes freedom of trade and contract, the free movement of labor, and protection of property rights against both criminal and official intrusiveness. The concept of freedom plays a central role in the understanding of Capitalism...
eBook - ePub- Gregory Claeys(Author)
- 2013(Publication Date)
- CQ Press(Publisher)
...Jason N. Brock Jason N. Brock Capitalism Capitalism 112 115 Capitalism Capitalism is currently the world’s predominant economic system and, in the most basic terms, can be defined as the process of investing money in the expectation of making a profit. There is, however, no single model of Capitalism, and a number of forms presently exist or have historically existed. This diversity creates some difficulties when it comes to defining the limits of Capitalism, although there are common features. Of particular note are the use of the market as a mechanism, which may be free or regulated, and the existence of private property rights of some kind. Both market regulation and property rights can be affected by political considerations in different countries. Capitalism has particularly been associated with liberalism, especially the variants advocating little or no regulation of markets. Other ideologies, including some versions of socialism, also engage with Capitalism and capitalist principles, albeit often within a different intellectual framework. The principle of economic freedom is generally linked to Capitalism and some commentators, most notably Milton Friedman, have argued the case for considering Capitalism as a prerequisite of political and personal freedom. Conversely, other political ideologies, such as Marxism and libertarian socialism, are heavily critical of Capitalism and consider it to lead to exploitation, reduction of freedom for the majority, and inequitable outcomes. History of Capitalism The earliest incarnation of Capitalism that is readily recognizable by modern standards is mercantilism. Historical attention around mercantilism has gravitated toward the experience of British, Dutch, Spanish, and Portuguese activities, as these were the dominant seafaring powers between the sixteenth and eighteenth centuries...
eBook - ePubBusiness for Communicators
The Essential Guide to Success in Corporate and Public Affairs
- Sandra Duhé(Author)
- 2021(Publication Date)
- Routledge(Publisher)
...Chapter 2 Capitalism: Its Benefits and Discontents DOI: 10.4324/9781003000600-3 To understand Capitalism, you need to first understand its origins. As a corporate communicator, you also need to understand how the principles and outcomes of Capitalism attract both vehement supporters and antagonistic opponents. The larger your firm, the more likely you will encounter both ends of this spectrum in your corporate career, as each group places significant change pressures on companies. We’re going to trace the roots, priorities, and varieties of Capitalism through the lens of political economy in this chapter. Origins of Political Economy The term “political economy” dates back to the 18th century and Adam Smith’s (1776) publication of An Inquiry into the Nature and Causes of the Wealth of Nations, more commonly referred to as Wealth of Nations. This point in history is significant for a number of reasons, including a fundamental shift in want satisfaction (Gilpin, 2001 ; see also Duhé & Sriramesh, 2009). Specifically, the means to satisfy one’s wants (e.g., food, clothing, shelter, livelihood) was becoming an increasingly political process. Think of the early colonists in what would become the United States of America. They left England for a new life in a new settlement, with increasing dependence on others outside of their families to get by. Similar shifts were taking place globally. Major political and economic changes were underway as nations defined their sovereignty and expanded commerce beyond their borders. This time in history was ripe for Smith’s observations and insights. The “political” in political economy refers to the public role of the state, or government. The role of the state was debated in these early settlements, asking how much or how little government should be involved in the lives of citizens...
eBook - ePub- Robert Heilbroner(Author)
- 1993(Publication Date)
- House of Anansi Press(Publisher)
...III THE POLITICS OF Capitalism I O UR LAST CHAPTER WAS about Capitalism as an economic system; this one will be about Capitalism as a political order. The difference between the two is not as great as we might think — we have already seen that the life process of capital expansion has political as well as economic consequences, generating inequalities alongside material well-being. Marx, who was surely a searching diagnostician of its political as well as economic system, thought that the economics of Capitalism arose from the “contradictions” generated by its drive for production, and that its politics arose from the “class struggles” stemming from its mode of distribution. The idea of class struggle sounds stilted today, the vocabulary of another era. But Marx’s perception should not be written off too quickly. Although it may lie in the background, out of sight, a tension between those who occupy the favoured positions, and those who do not, informs the politics of all stratified social orders. That is only to say that the fundamental political issue of Capitalism, as of every stratified society, concerns its class relations. We will return to this issue at the end of our inquiry. But meanwhile, if we ask what is the immediate central political issue in Capitalism, the issue that takes on an often obsessive prominence in every capitalist nation, there is no question where to look. It is the relationship between business and government, or from a somewhat more distant perspective, between the economy and the state. We often fail to realize how remarkable this aspect of capitalist political life is, probably because we are not generally aware of one of the system’s unique features: the separation of overall governance in any social order into two independent and legally divorced realms, which are at the same time mutually dependent and married for life...
eBook - ePubEncyclopedia of Political Economy
2-volume set
- Phillip O'Hara(Author)
- 1999(Publication Date)
- Routledge(Publisher)
...However, the contradictions of expanding the power of labor led to a backlash, the rise of conservative governments and a sustained drop in effective demand. During the 1970s–1990s, capital and the state have been trying to find a new set of institutional relationships to enhance accumulation. This has not yet been successful, despite various changes such as deregulation, privatization, internationalization and the like. Capitalism does not exist in a single configuration. There is much variety in the current forms of Capitalism. What makes each capitalist regime unique is the degree of separation of powers between the public and private realms. Even today, as we look around the globe, what separates Japanese Capitalism from European Capitalism is not the differences in markets, accumulation or wage labor, but rather the degree of cooperation between the public and private sectors. American Capitalism has a greater separation of power than many other capitalist systems. This stems directly from the individualist ideology inherent in the American system. Joint cooperatives such as the European Airbus would be very difficult to construct within the American capitalist system. A future without Capitalism? Any configuration that Capitalism may take in the future will depend on the interaction of the four defining characteristics associated with markets, accumulation, wage labor and the separation of power. Will Capitalism be the dominant order for the next thousand years? This seems unlikely. The simple truth is that civilizations fall. Several possibilities exist for the demise of or transformation beyond Capitalism (see Harvey 1982; Block 1990; Dowd 1993), as follows. • Some believe the demise of Capitalism will be related to the FALLING RATE OF PROFIT TENDENCY. Capitalists simply will not have sufficient profits to expand...
