CAPITALISM

Capitalism

Capitalism

Capitalism introduction

The economic system which is based on private ownership through which one can gain profit by the means of capital investment and labor employment is capitalism. It is the system which now exists in almost every country. Initially capitalism had existed in a limited form in the society, it included factories, mills, workshops and but gradually, it has expanded to multinational firms. Capitalism has two divisions of classes, those who own the means of production and those who work for them.

Capitalism is grounded on free endeavor and believes that there should be restricted government intervention. It argues that free market should be based only on supply and demand, which will eventually maximize consumers' benefits. Capitalism promotes the freedom of individual venture however the government is required to take action against its abuses like slavery and financial fraud.

It can still exist while under military dictatorship like the Scandinavian democratic socialism states, South Korea's rapid state-sponsored industrialized growth, and Japan's consent politics all coexist with capitalism. However, since the 1930s Great Depression, considerable government involvement has existed in spite of the capitalist principle of "hands-off" government, in most of the capitalist nations. It also exists in the form of taxes, incentives, grants and other exemption in some countries.

Requirements for capitalism to thrive

Although global dealing has been linked with the thriving of capitalism for many years, some scholars feel that since last quarter of the century, the trends that link with globalization increased the flow of people as well as capital. Now these trends boost that capitalism should be viewed as a truly global system. However, other thinkers argue that globalization, even at its quantitative extent, is no greater now than during earlier periods of capitalist trade.

While some scholars feel that the thriving of capitalism eventually leads to the materialization of democracy, ...