Search results
CAPITALISM is often thought of as an economic system in which private actors own and control property in accord with their interests, and de-mand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.
- 456KB
- 2
Mar 1, 2021 · Pdf_module_version 0.0.8 Ppi 360 Rcs_key 24143 Republisher_date 20210301120941 Republisher_operator associate-jessa-lubiano@archive.org Republisher_time 540 Scandate 20210222005903 Scanner station43.cebu.archive.org Scanningcenter
In this book, you find the most important economic theories, hypotheses, and discoveries without a zillion obscure details, outdated examples, or complicated mathematical “proofs.”
- Overview
- History of capitalism
Also known as: free enterprise economy, free market economy, private enterprise economy
Written byRobert L. Heilbroner,
Robert L. Heilbroner
Norman Thomas Professor Emeritus of Economics, New School for Social Research, New York City. Author of The Worldly Philosophers; The Nature and Logic of Capitalism; and others.
Peter J. Boettke
Peter J. Boettke
Although the continuous development of capitalism as a system dates only from the 16th century, antecedents of capitalist institutions existed in the ancient world, and flourishing pockets of capitalism were present in Europe during the later Middle Ages. The development of capitalism was spearheaded by the growth of the English cloth industry during the 16th, 17th, and 18th centuries. The feature of this development that distinguished capitalism from previous systems was the use of accumulated capital to enlarge productive capacity rather than to invest in economically unproductive enterprises, such as pyramids and cathedrals. This characteristic was encouraged by several historical events.
In the ethic fostered by the Protestant Reformation of the 16th century, traditional disdain for acquisitive effort was diminished while hard work and frugality were given a stronger religious sanction. Economic inequality was justified on the grounds that the wealthy were more virtuous than the poor.
Another contributing factor was the increase in Europe’s supply of precious metals and the resulting inflation in prices. Wages did not rise as fast as prices in this period, and the main beneficiaries of the inflation were the capitalists. The early capitalists (1500–1750) also enjoyed the benefits of the rise of strong national states during the mercantilist era. The policies of national power followed by these states succeeded in providing the basic social conditions, such as uniform monetary systems and legal codes, necessary for economic development and eventually made possible the shift from public to private initiative.
Beginning in the 18th century in England, the focus of capitalist development shifted from commerce to industry. The steady capital accumulation of the preceding centuries was invested in the practical application of technical knowledge during the Industrial Revolution. The ideology of classical capitalism was expressed in An Inquiry into the Nature and Causes of the Wealth of Nations (1776), by the Scottish economist and philosopher Adam Smith, which recommended leaving economic decisions to the free play of self-regulating market forces. After the French Revolution and the Napoleonic Wars had swept the remnants of feudalism into oblivion, Smith’s policies were increasingly put into practice. The policies of 19th-century political liberalism included free trade, sound money (the gold standard), balanced budgets, and minimum levels of poor relief. The growth of industrial capitalism and the development of the factory system in the 19th century also created a vast new class of industrial workers whose generally miserable working and living conditions inspired the revolutionary philosophy of Karl Marx (see also Marxism). Marx’s prediction of the inevitable overthrow of capitalism in a proletarian-led class war proved shortsighted, however.
Adam Smith, paste medallion by James Tassie, 1787; in the Scottish National Portrait Gallery, Edinburgh.
Courtesy of the Scottish National Portrait Gallery, Edinburgh
Capitalism? 81 Before we entrust the education of the nation’s roughly 47 million school-aged children to the institutions and processes of capi-talism, it is valuable to review how capitalism works and what distinguishes it from other types of economic systems. The start of the twenty-first century is a good time to reevaluate long-held
- 121KB
- 21
You like learning why as well as what. That is, you want to know why things happen and how they work instead of just memorizing factoids. ×. Economics for Dummies PDF. 664 Pages·2018·4.91 MB·English. by Sean Masaki Flynn. # for dummies # basic economics # economics books # a level economics.
People also ask
What is capitalism in economics?
What are the essential features of capitalism?
How does a capitalist economy work?
Why does capitalism fail?
What is a mixed capitalist economy?
Where did classical capitalism come from?
Apr 11, 2022 · Economics for dummies. by. Antonioni, Peter. Publication date. 2011. Topics. Economics. Publisher. Chichester, England : Wiley.
