What is capitalism? A few essays on the topic of the term

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

Very often we use words whose meaning is not quite clear to us. For example, historians or, say, political scientists, know perfectly well what capitalism is, but not all people without exception. Therefore, in this article we will try to understand this concept, learn something about its origin, as well as its characteristics and impact on society.

On the meaning of this term

Capitalism is a socio-economic system that was formed in Europe (and then throughout the world) after the fall of the feudal system. It is based on the acquisition and growth of private property, and on complete freedom and equality in jurisdiction and commerce. It is worth noting that the mentioned system, in addition to having an impact on the society and economy of any country, is also a powerful political structure. It is believed that capitalism is based on the principles of liberalism. The latter, in turn, implies unhindered trade, the possibility of private enterprise and complete freedom of action.

Whatis capitalism in history

Among the capitalists who lived in past centuries, it is worth highlighting Kant, Hobbes, Montesquieu, Weber and Locke. It was under the slogans and scientific works of these people that this trend was born in its original form. The Protestant ethic, the industriousness that should have been inherent in everyone - these are the principles on which capitalism was to be built.

The definition of this issue was detailed by A. Smith in his famous work “A Study on the Nature and Causes of the We alth of Nations”. It says that only by being industrious, frugal and enterprising, one can succeed. However, this becomes possible under the condition of complete economic freedom. The English and French bourgeois revolutions must also not be overlooked. It was they who became the turning points in history that forced the whole of Europe to change its political system.

What is capitalism these days

For every modern person, the word "capitalism" is primarily associated with private enterprises, market economy, free competition, equality of opportunity. Almost the entire world is currently built exactly according to this economic scheme.

However, in each country, private property and capital are acquired in different ways, which may or may not be prescribed by law. Therefore, the characteristics of capitalism in a particular state depend on the economic apparatus, on the Constitution, and also, importantly, onmentality. Somewhere all citizens are given the opportunity to “rise”, to become a rich person. There would be a desire. People can easily get a loan from a bank and invest the funds received in a business. In Russia, there are no such phenomena - here either pan or gone.

How this system works

To understand what capitalism is, one can proceed from the principles of operation of the mentioned socio-economic system. Its functioning consists in the acquisition of capital by individual elements of society. As a result, the social structure is divided into the ruling elite (we althy people) and everyone else. Such a system was formed over several centuries, experienced crises, upsurges, wars and changes in state regimes in various countries. In the course of all these events, it also became clear that "purely liberal" dogmas for capitalism are not effective. The state and private entrepreneurs cannot be completely isolated from each other and coexist at the same time in peace and harmony. Such a scheme of actions presupposes the development of further, more serious problems that can destroy both the government and capitalism itself.