RISE ON CAPITALISM

Rise on Capitalism

Rise on Capitalism

Introduction

Capitalism is the social order resulting from the free economy in the provision and enjoyment of private property in the capital as a production tool. In capitalism, individuals and companies carry out production and exchange of goods or services freely in the division of labor necessary for the purpose of monetary benefit to obtain resources in function of any order for within the framework of cooperation mediated by the market. The distribution, production and prices of goods and services are determined by the free market, supply and demand between producers and consumers (Douglass, 1994, pp.103-109).

The etymology of the word capitalism comes from the idea of capital and its use for private ownership of the means of production, but is related primarily to capitalism as a concept to the exchange within a market economy is its necessary condition, and bourgeois property which is its corollary previous as the most complete and coherent private property (Speth, 2008, pp.34-47). The capitalist order of society is made ??up of classes instead of statements as are those of feudalism and other pre-modern orders. It differs from this and other social forms of social mobility of individuals, social stratification by economic type expressed in a continuous exponential income and income distribution that depends almost entirely on the functionality of the different positions acquired social structure of production (Williams, 1998, pp.66-73).

Characteristics of Capitalism

Throughout its history, but especially during its peak in the second half of the nineteenth century, capitalism had a number of basic features.

First, the means of production-land and capital-are privately owned. Capital in this context refers to buildings, machinery and other tools used to produce goods and services for consumption. Second, economic activity appears organized and coordinated by the interaction between buyers and sellers (or producers) that occurs in markets (Williams, 1998, pp.66-73). Third, both the owners of land and capital as workers, are free and looking to maximize their welfare, so try to make the most of their resources and labor used to produce, consumers can spend as and when they want their income to obtain the greatest possible satisfaction (Douglass, 1994, pp.103-109).

This principle, called sovereignty of the consumer, reflects that in a capitalist system, producers will be forced, due to competition; to use their resources so they can meet consumer demand, the interest staff and the search benefits leads them to follow this strategy. Fourth, under the capitalist system controlling the private sector by the public sector should be minimal, it is considered that if there is competition, economic activity is controlled itself, the activity of government is only required to manage the national defense, to respect private property and enforce contracts.

Rise of Capitalism

The remnants of feudalism gave way to capitalism, for it lays the groundwork for a fundamental difference between the two: the first is a political-economic system based on the acquisition of honor and service while the second political-economic system the base is the acquisition of wealth. Same characteristics prevented a new kind of wealth, ...