Capitalism

Capitalism

Introduction

Capitalism is a political, social and economic environment in which a few large companies and wealthy individuals control the property, including capital assets (land, factories, money, stocks and bonds, bonds). Capitalism differs from previous economic system, the feudalism, for the purchase of labor for wages, and not by the direct labor that obtained by the traditional concept, task or duty (close to slavery) in feudalism. It differs from socialism primarily by the predominance of private property, in contrast to the social ownership of production elements. In capitalism, the price mechanism is used as putative signal allocates resources among different uses. The different forms of capitalism depends on, among others, the extent to which they use the price mechanism, the degree of competitiveness of the markets and the level of government involvement in the economy (George, n.d.). This paper focuses mainly on the capitalism.

Discussion

Capitalism is necessary to define its basic principles, as there is no consensus on its definition. Generally, capitalism is considered an economic system in which private property plays a key role. This is the first of the basic tenets of capitalism. Also included within these entrepreneurial freedom and choice, self-interest as dominant motivation, competition, and the importance of system or market prices and reduced government role. On private property, capitalism establishes that resources should be in the hands of companies and individuals. Thus, individuals are provided with the use, occupation and control of the resources they use in their productive activities. Because of this, individuals can use the resources as they see fit.

For nearly four years capitalism has plunged the world into a crisis which is unprecedented in its scope, its comprehensiveness and its multi-dimensionality: economic, financial, social and ecological dimensions reinforcing each other. The socio-economic structures crack because there has been a prevalence of strengthening of a dominant ...