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Encyclopedia > Capitalism

Capitalism is a social system based on the recognition of inalienable rights in which people are free to produce and trade and thus precondition an economic system in which all property is privately owned[1][2] and operated for profit,[3] and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy. It is usually considered to involve the right of individuals and corporations to trade, using money, in goods, services (including finance), labor and land. Social structure (also referred to as a social system) is a system in which people forming the society are organized by a patterns of prelationships. ... The term inalienable rights (or unalienable rights) refers to a set of human rights that are in some sense fundamental, are not awarded by human power, and cannot be surrendered. ... Economics (deriving from the Greek words οίκω [okos], house, and νέμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... This article or section does not cite any references or sources. ... This article or section does not cite any references or sources. ... Invest redirects here. ... Wikibooks [[wikibooks:|]] has more about this subject: Marketing Distribution (or placement) is one of the four aspects of marketing. ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... This article does not cite any references or sources. ... Good. ... This article is about a term used in economics. ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... For other uses, see Corporation (disambiguation). ... This article is about economic exchange. ... For other uses, see Money (disambiguation). ... The field of finance refers to the concepts of time, money and risk and how they are interelated. ... In classical economics and all micro-economics labour is one of three factors of production, the others being land and capital. ...


Capitalist economic practices became institutionalized in England between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world, and early forms of merchant capitalism flourished during the Middle Ages.[4][5] Capitalism has been dominant in the Western world since the end of feudalism.[4] From England it gradually spread throughout Europe, across political and cultural frontiers. In the 19th and 20th centuries, capitalism provided the main, but not exclusive, means of industrialization throughout much of the world.[6] For other uses, see England (disambiguation). ... Ancient redirects here. ... Merchant capitalism is a term used by economic historians to refer to the earliest phase in the development of capitalism as an economy and social system. ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times, beginning with the Renaissance. ... Roland pledges his fealty to Charlemagne; from a manuscript of a chanson de geste Feudalism, a term first used in the late modern period (17th century), in its most classic sense refers to a Medieval European political system comprised of a set of reciprocal legal and military obligations among the... Industrialisation (or industrialization) or an industrial revolution (in general, with lowercase letters) is a process of social and economic change whereby a human society is transformed from a pre-industrial to an industrial state . ...


The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture, and some feel that the term "mixed economies" more precisely describes most contemporary economies.[7][8] Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation.[6] During the last century capitalism has been contrasted with centrally planned economies, such as Marxist economies. A mixed economy is an economy that contains both private and publically, or state owned (or controlled) enterprises. ... This article refers to an economy controlled by the state. ... Marxism is the political practice and social theory based on the works of Karl Marx, a 19th century philosopher, economist, journalist, and revolutionary, along with Friedrich Engels. ...

Contents

Perspectives

The concept of capitalism has evolved over time, with later thinkers often building on the analysis of earlier thinkers. Moreover, the component concepts used in defining capitalism — such as private ownership, markets and investment — have evolved along with changes in theory, in law, and in practice. This page deals with property as ownership rights. ...


Classical political economy

The "classical" tradition in economic thought emerged in Britain in the late 18th century. The classical political economists Adam Smith, David Ricardo, Jean-Baptiste Say, and John Stuart Mill published analyses of the production, distribution, and exchange of goods in a capitalist economy that have since formed the basis of study for most contemporary economists. Contributions to this tradition are also found in the earlier work of David Hume and the physiocrats like Richard Cantillon. It has been suggested that History of economics be merged into this article or section. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... Jean-Baptiste Say (January 5, 1767 – November 15, 1832) was a French economist and businessman. ... John Stuart Mill (20 May 1806 – 8 May 1873), British philosopher, political economist, civil servant and Member of Parliament, was an influential liberal thinker of the 19th century. ... For other persons named David Hume, see David Hume (disambiguation). ... The Physiocrats were a group of economists who believed that the wealth of nations was derived solely from agriculture. ... Richard Cantillon (1680-1734), acknowledged by many historians as the first great economic theorist, is an obscure character. ...

Adam Smith's attack on mercantilism and his reasoning for "the system of natural liberty" in The Wealth of Nations (1776) are usually taken as the beginning of classical political economy. Smith devised a set of concepts that remain strongly associated with capitalism today, particularly his theory of the "invisible hand" of the market, through which the pursuit of individual self-interest unintentionally produces a collective good for society. He criticized monopolies, tariffs, duties, and other state enforced restrictions of his time and believed that the market is the most fair and efficient arbitrator of resources. This view was shared by David Ricardo, second most important of the classical political economists and one of the most influential economists of modern times.[9] In The Principles of Political Economy and Taxation (1817) he developed the law of comparative advantage, which explains why it is profitable for two parties to trade, even if one of the trading partners is more efficient in every type of economic production. This principle supports the economic case for free trade. Ricardo was a supporter of Say's Law and held the view that full employment is the normal equilibrium for a competitive economy.[10] He also argued that inflation is closely related to changes in quantity of money and credit and was a proponent of the law of diminishing returns, which states that each additional unit of input yields less and less additional output.[11] Adam Smith This image is in the public domain because its copyright has expired in the United States and those countries with a copyright term of life of the author plus 100 years. ... Adam Smith This image is in the public domain because its copyright has expired in the United States and those countries with a copyright term of life of the author plus 100 years. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... A painting of a French seaport from 1638, at the height of mercantilism. ... Adam Smiths first title page An Inquiry into the Nature and Causes of the Wealth of Nations is the magnum opus of the Scottish economist Adam Smith, published on March 9, 1776, during the Scottish Enlightenment. ... For other uses, see Invisible hand (disambiguation). ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... In economics, David Ricardo is credited for the principle of comparative advantage to explain how it can be beneficial for two parties (countries, regions, individuals and so on) to trade if one has a lower relative cost of producing some good. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... In economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832) stating that there can be no demand without supply. ... For other uses, see Money (disambiguation). ... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ... In economics, diminishing returns is the short form of diminishing marginal returns. ...


The values of classical political economy are strongly associated with the classical liberal doctrine of minimal government intervention in the economy. Classical liberal thought has generally assumed a clear division between the economy and other realms of social activity, such as the state.[12] Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam...


Marxian political economy

Main article: Marxian economics

Karl Marx considered capitalism to be a historically specific mode of production (the way in which the productive property is owned and controlled, combined with the corresponding social relations between individuals based on their connection with the process of production) in which capital has become the dominant mode of production.[13] The capitalist stage of development or "bourgeois society," for Marx, represented the most advanced form of social organization to date. Note: Marxian is not restricted to Marxian economics, as it includes those inspired by Marxs works who do not identify with Marxism as a political ideology. ... Image File history File links Karl_Marx. ... Image File history File links Karl_Marx. ... Karl Heinrich Marx (May 5, 1818 – March 14, 1883) was a 19th century philosopher, political economist, and revolutionary. ... Karl Heinrich Marx (May 5, 1818 – March 14, 1883) was a 19th century philosopher, political economist, and revolutionary. ... In the writings of Karl Marx and the Marxist theory of historical materialism, a mode of production (in German: Produktionsweise, meaning the way of producing) is a specific combination of: productive forces: these include human labor-power, tools, equipment, buildings and technologies, materials, and improved land social and technical relations... Relations of production (German: Produktionsverhaltnisse) is a concept frequently used by Karl Marx in his theory of historical materialism. ...


Following Adam Smith, Marx distinguished the use value of commodities from their exchange value in the market. Capital, according to Marx, is created with the purchase of commodities for the purpose of creating new commodities with an exchange value higher than the sum of the original purchases. For Marx, the use of labor power had itself become a commodity under capitalism; the exchange value of labor power, as reflected in the wage, is less than the value it produces for the capitalist. This difference in values, he argues, constitutes surplus value, which the capitalists extract and accumulate. In his book Capital, Marx argues that the capitalist mode of production is distinguished by how the owners of capital extract this surplus from workers — all prior class societies had extracted surplus labor, but capitalism was new in doing so via the sale-value of produced commodities.[14] For other persons named Adam Smith, see Adam Smith (disambiguation). ... In Marxian political economy, any commodity, i. ... In Marxian political economy, exchange value refers to one of three major aspects of a commodity, i. ... Capital has a number of related meanings in economics, finance and accounting. ... Labor power (in German: Arbeitskraft, or labor force) is a crucial concept used by Karl Marx in his critique of political economy. ... Surplus value, according to Marxism, is unpaid labour that is extracted from the worker by the capitalist, and serves as the basis for capitalist accumulation. ... Das Kapital (Capital, in the English translation) is an extensive treatise on political economy written by Karl Marx in German. ... The capitalist mode of production is a concept in Karl Marx’s critique of political economy. ... Surplus labour is a concept used by Karl Marx in his critique of political economy. ...


For Marx, this cycle of the extraction of the surplus value by the owners of capital or the bourgeoisie becomes the basis of class struggle. However, this argument is intertwined with Marx's version of the labor theory of value asserting that labor is the source of all value, and thus of profit. This theory is contested by most current economists, including some contemporary Marxian economists.[6] One line of subsequent Marxian thinking sees the centrally-planned economic systems of existing "communist" societies that were still based on exploitation of labor as "state capitalism."[15] The South African Police Crush Another Demonstration by the Shack dwellers Movement Abahlali baseMjondolo, 28 September, 2007 Class struggle is the active expression of class conflict looked at from any kind of socialist perspective. ... The labor theories of value (LTV) are theories in economics according to which the true values of commodities are related to the labor needed to produce them. ... Alan Greenspan, former chairman, United States Federal Reserve. ... There are multiple definitions of the term state capitalism. ...


Vladimir Lenin, in Imperialism, the Highest Stage of Capitalism (1916), modified classic Marxist theory and argued that capitalism necessarily induced monopoly capitalism - which he also called "imperialism" - in order to find new markets and resources, representing the last and highest stage of capitalism.[16] Lenin redirects here. ... Imperialism, the Highest Stage of Capitalism (1916) by Vladimir Lenin is a classic Marxist theoretical treatise on the relationship between capitalism and imperialism. ... The theory of state monopoly capitalism (Stamocap or Stamokap theory) was initially a Marxist-Leninist doctrine popularised after World War II. Lenin had claimed in 1917 that World War I had transformed monopoly capitalism into state monopoly capitalism, but he did not publish any extensive theory about the topic. ...


In Marxist thought, capitalism is often linked with patriarchal hegemony.[17] Some 20th century Marxian economists consider capitalism to be a social formation where capitalist class processes dominate, but are not exclusive.[18] Capitalist class processes, to these thinkers, are simply those in which surplus labor takes the form of surplus value, usable as capital; other tendencies for utilization of labor nonetheless exist simultaneously in existing societies where capitalist processes are predominant. However, other late Marxian thinkers emphasize that capitalism is the mode by which a surplus is generated — the mode of surplus extraction — in modern societies where an absolute majority of the population is engaged in non-capitalist economic activity.[19] A patriarch (from Greek: patria means father; arché means rule, beginning, origin) is a male head of an extended family exercising autocratic authority, or, by extension, a member of the ruling class or government of a society controlled by senior men. ... Look up hegemony in Wiktionary, the free dictionary. ... Note: Marxian is not restricted to Marxian economics, as it includes those inspired by Marxs works who do not identify with Marxism as a political ideology. ... Surplus labour is a concept used by Karl Marx in his critique of political economy. ... Surplus value, according to Marxism, is unpaid labour that is extracted from the worker by the capitalist, and serves as the basis for capitalist accumulation. ...


Weberian political sociology

Max Weber in 1917
Max Weber in 1917

In some social sciences, the understanding of the defining characteristics of capitalism has been strongly influenced by 19th century German social theorist Max Weber. Weber considered market exchange, rather than production, as the defining feature of capitalism; capitalist enterprises, in contrast to their counterparts in prior modes of economic activity, was their rationalization of production, directed toward maximizing efficiency and productivity. According to Weber, workers in pre-capitalist economic institutions understood work in terms of a personal relationship between master and journeyman in a guild, or between lord and peasant in a manor.[20] Image File history File linksMetadata Max_Weber_1917. ... Image File history File linksMetadata Max_Weber_1917. ... For the politician, see Max Weber (politician). ... The social sciences are groups of academic disciplines that study the human aspects of the world. ... For the politician, see Max Weber (politician). ... Look up Market in Wiktionary, the free dictionary. ... Look up exchange in Wiktionary, the free dictionary. ... Look up efficiency in Wiktionary, the free dictionary. ... --158. ... A master craftsman (sometimes called only master or grandmaster) was a member of a guild. ... For other uses, see Journeyman (disambiguation). ... A guild is an association of craftspeople in a particular trade. ... Lordship redirects here. ... In a detail of Brueghels Land of Cockaigne (1567) a soft-boiled egg has little feet to rush to the luxuriating peasant who catches drops of honey on his tongue, while roast pigs roam wild: in fact, hunger and harsh winters were realities for the average European in the... For the 17th century system in Canada, see Seigneurial system of New France. ...


In his book The Protestant Ethic and the Spirit of Capitalism (1904-1905), Weber sought to trace how capitalism transformed traditional modes of economic activity. For Weber, the 'spirit' of rational calculation eroded traditional restraints on capitalist exchange, and fostered the development of modern capitalism. This 'spirit' was gradually codified by law; rendering wage-laborers legally 'free' to sell work; encouraging the development of technology aimed at the organization of production on the basis of rational principles; and clarifying the separation of the public and private lives of workers, especially between the home and the workplace. Therefore, unlike Marx, Weber did not see capitalism as primarily the consequence of changes in the means of production.[21] Instead, for Weber the origins of capitalism rested chiefly in the rise of a new entrepreneurial 'spirit' in the political and cultural realm. In the Protestant Ethic, Weber suggested that the origin of this 'spirit' (the Protestant work ethic) was related to the rise of Protestantism, particularly Calvinism. The Protestant Ethic and the Spirit of Capitalism is a book written by Max Weber, a German economist and sociologist in 1904 and 1905 that began as a series of essays. ... For the computer game by Peter Molyneux, see The Entrepreneur. ... The Protestant work ethic, or sometimes called the Puritan work ethic, is a Calvinist value emphasizing the necessity of constant labor in a persons calling as a sign of personal salvation. ... Topics in Christianity Movements · Denominations Ecumenism · Relation to other religions Preaching · Prayer Music · Liturgy · Calendar Symbols · Art · Criticism Christianity Portal This box:      Protestantism encompasses the forms of Christian faith and practice that originated with the doctrines of the Reformation. ... Topics in Christianity Movements · Denominations Ecumenism · Relation to other religions Preaching · Prayer Music · Liturgy · Calendar Symbols · Art · Criticism Important figures Apostle Paul · Church Fathers Constantine · Athanasius · Augustine Anselm · Aquinas · Palamas Luther · Calvin · Wesley Arius · Marcion of Sinope Archbishop of Canterbury · Pope Coptic Pope · Ecumenical Patriarch Christianity Portal This box:      Calvinism...


Capitalism, for Weber, is the most advanced economic system ever developed over the course of human history. Weber associated capitalism with the advance of the business corporation, public credit, and the further advance of bureaucracy of the modern world. Although Weber defended capitalism against its socialist critics of the period, he saw its rationalizing tendencies as a possible threat to traditional cultural values and institutions, and a possible 'iron cage' constraining human freedom.[22] For other uses, see Corporation (disambiguation). ... This article is about the sociological concept. ...


German Historical School and Austrian School

From the perspective of the German Historical School, capitalism is primarily identified in terms of the organization of production for markets. Although this perspective shares similar theoretical roots with that of Weber, its emphasis on markets and money lends it different focus.[13] For followers of the German Historical School, the key shift from traditional modes of economic activity to capitalism involved the shift from medieval restrictions on credit and money to the modern monetary economy combined with an emphasis on the profit motive. The Historical school of economics was a mainly German school of economic thought which held that a study of history was the key source of knowledge about human actions and economic matters, since economics would be culture-specific and not generalizable over space and time. ... Look up Market in Wiktionary, the free dictionary. ... For other uses, see Money (disambiguation). ... A monetary system secures the proper functioning of money by regulating economic agents, transaction types, and money supply. ...

In the late 19th century the German historical school of economics diverged with the emerging Austrian School of economics, led at the time by Carl Menger. Later generations of followers of the Austrian School continued to be influential in Western economic thought through much of the 20th century. The Austrian economist Joseph Schumpeter, a forerunner of the Austrian School of economics, emphasized the "creative destruction" of capitalism — the fact that market economies undergo constant change. At any moment of time, posits Schumpeter, there are rising industries and declining industries. Schumpeter, and many contemporary economists influenced by his work, argue that resources should flow from the declining to the expanding industries for an economy to grow, but they recognized that sometimes resources are slow to withdraw from the declining industries because of various forms of institutional resistance to change. Image File history File linksMetadata MisesLibrary. ... Image File history File linksMetadata MisesLibrary. ... Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... The Austrian School, also known as the “Vienna School” or the “Psychological School”, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... Austrian School economist Carl Menger Carl Menger Carl Menger (February 28, 1840 – February 26, 1921) was the founder of the Austrian School of economics. ... Joseph Alois Schumpeter (February 8, 1883 – January 8, 1950) was economist and political scientist born in Moravia. ... Creative destruction, introduced in 1942 by the economist Joseph Schumpeter, describes the process of transformation that accompanies radical innovation. ...


The Austrian economists Ludwig von Mises and Friedrich Hayek were among the leading defenders of market capitalism against 20th century proponents of socialist planned economies. Mises and Hayek argued that only market capitalism could manage a complex, modern economy. Since a modern economy produces such a large array of distinct goods and services, and consists of such a large array of consumers and enterprises, asserted Mises and Hayek, the information problems facing any other form of economic organization other than market capitalism would exceed its capacity to handle information. Thinkers within Supply-side economics built on the work of the Austrian School, and particular emphasize Say's Law: "supply creates its own demand." Capitalism, to this school, is defined by lack of state restraint on the decisions of producers. Ludwig Heinrich Edler von Mises (September 29, 1881 – October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... A market economy (aka free market economy and free enterprise economy) is an economic system in which the production and distribution of goods and services takes place through the mechanism of free markets guided by a free price system rather than by the state in a planned economy. ... A command economy is a political system in which government decisions are made by central state economic managers who determine what sorts of goods and services to produce and how they are to be priced and allocated, and may include state ownership of the means of production. ... Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates. ... In economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832) stating that there can be no demand without supply. ...


Austrian economics has been a major influence on the ideology of libertarianism, which considers laissez-faire capitalism to be the ideal economic system. This article is about the political philosophy based on private property rights. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ...


Keynesian economics

In his 1937 The General Theory of Employment, Interest, and Money, the British economist John Maynard Keynes argued that capitalism suffered a basic problem in its ability to recover from periods of slowdowns in investment. Keynes argued that a capitalist economy could remain in an indefinite equilibrium despite high unemployment. Essentially rejecting Say's law, he argued that some people may have a liquidity preference which would see them rather hold money than buy new goods or services, which therefore raised the prospect that the Great Depression would not end without what he termed in the General Theory "a somewhat comprehensive socialization of investment." File links The following pages link to this file: John Maynard Keynes ... File links The following pages link to this file: John Maynard Keynes ... Keynes redirects here. ... The current version of the article or section reads like an advertisement. ... Keynes redirects here. ... Price of market balance In economics, economic equilibrium is simply a state of the world where economic forces are balanced and in the abscence of external shocks the (equilibrium) values of economic variables will not change. ... CIA figures for world unemployment rates, 2006 Unemployment is the state in which a person is without work, available to work, and is currently seeking work. ... In economics, Say’s Law or Say’s Law of Markets is a principle attributed to French businessman and economist Jean-Baptiste Say (1767-1832) stating that there can be no demand without supply. ... Keynes developed the Liquidity Preference of Interest in The General Theory. ... For other uses, see The Great Depression (disambiguation). ...


Keynesian economics challenged the notion that laissez-faire capitalist economics could operate well on their own, without state intervention used to promote aggregate demand, fighting high unemployment and deflation of the sort seen during the 1930s. He and his followers recommended "pump-priming" the economy to avoid recession: cutting taxes, increasing government borrowing, and spending during an economic down-turn. This was to be accompanied by trying to control wages nationally partly through the use of inflation to cut real wages and to deter people from holding money.[23] The premises of Keynes’s work have, however, since been challenged by neoclassical and supply-side economics and the Austrian School. “Deflation” redirects here. ... This article or section does not cite its references or sources. ... In macroeconomics, a recession is a decline in a countrys real gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. ... Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates. ...


Another challenge to Keynesian thinking came from his colleague Piero Sraffa, and subsequently from the Neo-Ricardian school that followed Sraffa. In Sraffa's highly-technical analysis, capitalism is defined by an entire system of social relations among both producers and consumers, but with a primary emphasis on the demands of production. According to Sraffa, the tendency of capital to seek its highest rate of profit causes a dynamic instability in social and economic relations. Piero Sraffa. ... The neo-Ricardian school is an economic school that derives from the close reading and interpretation of David Ricardo by Piero Sraffa, and from Sraffas critique of Neoclassical economics as presented in his The Production of Commodities by Means of Commodities, and further developed by the neo-Ricardians in...


Neoclassical economics and the Chicago School

Today, most academic research on capitalism in the English-speaking world draws on neoclassical economic thought. It favors extensive market coordination and relatively neutral patterns of governmental market regulation aimed at maintaining property rights, rather than privileging particular social actors; deregulated labor markets; corporate governance dominated by financial owners of firms; and financial systems depending chiefly on capital market-based financing rather than state financing. Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Neoclassical economics refers to a general approach (a metatheory) to economics based on supply and demand which depends on individuals (or any economic agent) operating rationally, each seeking to maximize their individual utility or profit by making choices based on available information. ... Labour economics seeks to understand the functioning of the market for labour. ... The capital market is the market for securities, where companies and the government can raise long-term funds. ...


The Chicago School of economics is best known for its free market advocacy and monetarist ideas. According to Milton Friedman and monetarists, market economies are inherently stable if left to themselves and depressions result only from government intervention.[24] Friedman, for example, argued that the Great Depression was result of a contraction of the money supply, controlled by the Federal Reserve, and not by the lack of investment as Keynes had argued. Ben Bernanke, current Chairman of the Federal Reserve, is among the economists today generally accepting Friedman's analysis of the causes of the Great Depression.[25] The Chicago school of economics is a school of thought favoring free-market economics practiced at and disseminated from the University of Chicago in the middle of the 20th century. ... Monetarism is a set of views concerning the determination of national income and monetary economics. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... The Fed redirects here. ... Ben Shalom Bernanke[1] is an American economist and current Chairman of the Board of Governors of the United States Federal Reserve. ...


Neoclassical economists, which today are the majority of economists,[26] consider value to be subjective, varying from person to person and for the same person at different times, and thus reject the labor theory of value. Marginalism is the theory that economic value results from marginal utility and marginal cost (the marginal concepts). These economists see capitalists as earning profits by forgoing current consumption, by taking risks, and by organizing production. Marginalism is the use of marginal concepts within economics. ... In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit. ... In economics, marginal concepts refer to the effect of producing or consuming one more of a good, i. ...


History

Main article: History of capitalism

Private ownership of some means of production has existed at least in a small degree since the invention of agriculture. Some writers see medieval guilds as forerunners of the modern capitalist concern (especially through using apprentices as a kind of paid laborer); but economic activity was bound by customs and controls which, along with the rule of the aristocracy which would expropriate wealth through arbitrary fines, taxes and enforced loans, meant that profits were difficult to accumulate. By the 18th century, however, these barriers to profit were overcome and capitalism became the dominant economic system of the United Kingdom and by the 19th century Western Europe. Capitalism originated from Western Europe. ... A guild is an association of persons of the same trade or pursuits, formed to protect mutual interests and maintain standards of morality or conduct. ... If youre looking for the TV show, see The Apprentice. ... Aristocrat redirects here. ... This article or section does not cite any references or sources. ...


Some writers trace back the earliest stages of merchant capitalism even further to the Caliphate during the 9th-12th centuries, where a vigorous monetary market economy was created on the basis of the expanding levels of circulation of a stable high-value currency (the dinar) and the integration of monetary areas that were previously independent. Innovative new business techniques and forms of business organization were introduced by economists, merchants and traders during this time. Such innovations included trading companies, bills of exchange, contracts, long-distance trade, big businesses, the first forms of partnership (mufawada in Arabic) such as limited partnerships (mudaraba) (mufawada partnership possessed features similar to those of the early medieval family compagnia in Europe[27]), and the concepts of credit, profit, capital (al-mal) and capital accumulation (nama al-mal). Many of these early capitalist ideas were further advanced in medieval Europe from the 13th century onwards.[5][28][29] Merchant capitalism is a term used by economic historians to refer to the earliest phase in the development of capitalism as an economy and social system. ... A caliphate (from the Arabic خلافة or khilāfah), is the Islamic form of government representing the political unity and leadership of the Muslim world. ... A monetary economy is a societys economy where products and services are traded in exchange for money. ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... A 25,000 Iraqi dinar note printed after the fall of Saddam Hussein. ... Moneys is an agreement within a community, to use something as a medium of exchange, which acts as an intermediary market good. ... In economics, a business (also called firm or enterprise) is a legally recognized organizational entity designed to provide goods and/or services to consumers or corporate entities such as governments, charities or other businesses. ... Business organizations is an area of law that covers the broad array of rules governing the formation and operation of different kinds of entities by which individuals can organize to do business. ... Alan Greenspan, former chairman, United States Federal Reserve. ... A merchant making up the account by Shiatsus Hokusai Merchants function as professionals who deal with trade, dealing in commodities that they do not produce themselves, in order to produce profit. ... The term Trader can refer to: In economics, a merchant, a retail business or one who attempts to generally buy wholesale and sell later at a profit In finance, someone who buys and sells financial instruments such as stocks, bonds and derivatives - see stock trader In marketing, Trader Classified Media... A joint stock company is a special kind of partnership. ... A negotiable instrument is a specialized type of contract for the payment of money which is unconditional and capable of transfer by negotiation. ... A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. ... This article is about economic exchange. ... Big Business or big business is a term used to describe large corporations, individually or collectively. ... A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking in which all have invested. ... Arabic redirects here. ... A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners (GPs), there are one or more limited partners (LPs). ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times, beginning with the Renaissance. ... For other uses, see Europe (disambiguation). ... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ... This article or section does not cite any references or sources. ... Capital has a number of related meanings in economics, finance and accounting. ... Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. ... The Middle Ages formed the middle period in a traditional schematic division of European history into three ages: the classical civilization of Antiquity, the Middle Ages, and modern times, beginning with the Renaissance. ...


Some economic historians (like Peter Temin) argue that the economy of the Early Roman Empire was a market economy and one of the most advanced agricultural economies to have existed (in terms of productivity, urbanization and development of capital markets), comparable to the most advanced economies of the world before the Industrial Revolution, namely the economies of 18th century England and 17th century Netherlands. There were markets for every type of good, for land, for cargo ships; there was even an insurance market.[30] Economic history is the study of how economic phenomena evolved in the past. ... Dr. Peter Temin (born 1937) is a widely cited economist and economic historian, currently Elisha Gray II Professor of Economics, MIT and former head of the Economics Department. ... For other uses, see Roman Empire (disambiguation). ... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ... A Watt steam engine, the steam engine that propelled the Industrial Revolution in Britain and the world. ... For other uses, see England (disambiguation). ...


In the period between the late 15th century and the late 18th century the institution of private property was brought into existence in the full, legal meaning of the term. Important contribution to the theory of property is found in the work of John Locke, who argued that the right to private property is a natural right. During the Industrial Revolution much of Europe underwent a thorough economic transformation associated with the rise of capitalism and levels of wealth and economic output in the Western world have risen dramatically since that period. For other persons named John Locke, see John Locke (disambiguation). ... For other uses, see Universalism (disambiguation). ...


Over the course of the past five hundred years, capital has been accumulated by a variety of different methods, in a variety of scales, and associated with a great deal of variation in the concentration of economic power and wealth.[6] Much of the history of the past five hundred years is concerned with the development of capitalism in its various forms, its defense and its rejection, particularly by socialists. Socialism refers to the goal of a socio-economic system in which property and the distribution of wealth are subject to control by the community. ...


Mercantilism

Main article: Mercantilism
A painting of a French seaport from 1638 at the height of mercantilism.

The economic and political system of the early modern period (16th to 18th centuries) from which capitalism evolved is commonly described as merchant capitalism or mercantilism[13] (EB). This period was associated with geographic discoveries by merchant overseas traders, especially from England and the Low Countries; the European colonization of the Americas; and the rapid growth in overseas trade. The associated rise of a bourgeoisie class eclipsed the prior feudal system. It is mercantilism that Adam Smith refuted in his Wealth of Nations which is a recognized treatise of capitalist theory. A painting of a French seaport from 1638, at the height of mercantilism. ... http://www. ... http://www. ... A painting of a French seaport from 1638, at the height of mercantilism. ... The early modern period is a term initially used by historians to refer mainly to the post Late Middle Ages period in Western Europe (Early modern Europe), its first colonies marked by the rise of strong centralized governments and the beginnings of recognizable nation states that are the direct antecedents... Merchant capitalism is a term used by economic historians to refer to the earliest phase in the development of capitalism as an economy and social system. ... A painting of a French seaport from 1638, at the height of mercantilism. ... Territories in the Americas colonized or claimed by a European great power in 1750. ...


Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist production methods.[6] Noting the various pre-capitalist features of mercantilism, Karl Polanyi argued that capitalism did not emerge until the establishment of free trade in Britain in the 1830s. Karl Paul Polanyi (October 21, 1886 - Pickering, Ontario April 23, 1964) was a Hungarian intellectual known for his opposition to traditional economic thought and his influential book The Great Transformation. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ...


Under mercantilism, European merchants, backed by state controls, subsidies, and monopolies, made most of their profits from the buying and selling of goods. In the words of Francis Bacon, the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of the soil; the regulation of prices…"[31] Similar practices of economic regimentation had begun earlier in the medieval towns. However, under mercantilism, given the contemporaneous rise of absolutism, the state superseded the local guilds as the regulator of the economy. A merchant making up the account by Shiatsus Hokusai Merchants function as professionals who deal with trade, dealing in commodities that they do not produce themselves, in order to produce profit. ... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... This article is about the economic term. ... For other persons named Francis Bacon, see Francis Bacon (disambiguation). ... Absolutism is a historiographical term used to describe a form of monarchical power that is unrestrained by any other institutions, such as churches, legislatures, or social elites. ... A guild is an association of craftspeople in a particular trade. ...


Among the major tenets of mercantilist theory was bullionism, a doctrine stressing the importance of accumulating precious metals. Mercantilists argued that a state should export more goods than it imported so that foreigners would have to pay the difference in precious metals. Mercantilists asserted that only raw materials that could not be extracted at home should be imported; and promoted government subsidies, such as the granting of monopolies and protective tariffs, were necessary to encourage home production of manufactured goods. The Theory & Its Origins Bullionism is an economic theory that defines wealth by the amount of precious metals owned. ... A precious metal is a rare metallic element of high, durable economic value. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        For other uses of this word, see tariff (disambiguation). ...


Proponents of mercantilism emphasized state power and overseas conquest as the principal aim of economic policy. If a state could not supply its own raw materials, according to the mercantilists, it should acquire colonies from which they could be extracted. Colonies constituted not only sources of supply for raw materials but also markets for finished products. Because it was not in the interests of the state to allow competition, held the mercantilists, colonies should be prevented from engaging in manufacturing and trading with foreign powers.


Industrial capitalism and laissez-faire

The Bank of England is one of the oldest central banks. It was founded in 1694 and nationalised in 1946.
The Bank of England is one of the oldest central banks. It was founded in 1694 and nationalised in 1946.

Mercantilism declined in Great Britain in the mid-18th century, when a new group of economic theorists, led by David Hume[32] and Adam Smith, challenged fundamental mercantilist doctrines as the belief that the amount of the world’s wealth remained constant and that a state could only increase its wealth at the expense of another state. However, in more undeveloped economies, such as Prussia and Russia, with their much younger manufacturing bases, mercantilism continued to find favor after other states had turned to newer doctrines. Image File history File linksMetadata Download high resolution version (2288x1712, 781 KB) The Bank of England in Threadneedle Street, London, England. ... Image File history File linksMetadata Download high resolution version (2288x1712, 781 KB) The Bank of England in Threadneedle Street, London, England. ... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ... Nationalization is the act of taking assets into state ownership. ... For other persons named David Hume, see David Hume (disambiguation). ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... For other uses, see Prussia (disambiguation). ... Imperial Russia is the term used to cover the period of history from the expansion of Russia under Peter the Great, through the expansion of the Russian Empire from the Baltic Sea to the Pacific Ocean, to the deposal of Nicholas II of Russia, the last tsar, at the start...


The mid-18th century gave rise to industrial capitalism, made possible by the accumulation of vast amounts of capital under the merchant phase of capitalism and its investment in machinery. Industrial capitalism, which Marx dated from the last third of the 18th century, marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and the routinization of work tasks; and finally established the global domination of the capitalist mode of production.[13] This article or section does not cite any references or sources. ... Division of labour is the breakdown of labour into specific, circumscribed tasks for maximum efficiency of output in the context of manufacturing. ...


During the resulting Industrial Revolution, the industrialist replaced the merchant as a dominant actor in the capitalist system and affected the decline of the traditional handicraft skills of artisans, guilds, and journeymen. Also during this period, capitalism marked the transformation of relations between the British landowning gentry and peasants, giving rise to the production of cash crops for the market rather than for subsistence on a feudal manor. The surplus generated by the rise of commercial agriculture encouraged increased mechanization of agriculture. A Watt steam engine, the steam engine that propelled the Industrial Revolution in Britain and the world. ... An artisan, also called a craftsman,[1] is a skilled manual worker who uses tools and machinery in a particular craft. ... A guild is an association of craftspeople in a particular trade. ... For other uses, see Journeyman (disambiguation). ... In agriculture, a cash crop is a crop which is grown for money. ... Feudalism comes from the Late Latin word feudum, itself borrowed from a Germanic root *fehu, a commonly used term in the Middle Ages which means fief, or land held under certain obligations by feodati. ... For the 17th century system in Canada, see Seigneurial system of New France. ...


The rise of industrial capitalism was also associated with the decline of mercantilism. Mid- to late-nineteenth-century Britain is widely regarded as the classic case of laissez-faire capitalism.[13] Laissez-faire gained favor over mercantilism in Britain in the 1840s with the repeal of the Corn Laws and the Navigation Acts. In line with the teachings of the classical political economists, led by Adam Smith and David Ricardo, Britain embraced liberalism, encouraging competition and the development of a market economy. Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... The Corn Laws, in force between 1815 and 1846, were import tariffs ostensibly designed to protect British farmers and landowners against competition from cheap foreign grain imports. ... Wikisource has original text related to this article: Navigation Acts The English Navigation Acts were a series of laws which restricted the use of foreign shipping in the trade of England (later the Kingdom of Great Britain and its colonies). ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... David Ricardo (18 April 1772–11 September 1823), a political economist, is often credited with systematizing economics, and was one of the most influential of the classical economists, along with Thomas Malthus and Adam Smith. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets (though completley useless to some dumbasses) guided by a free price system. ...


Late 19th and early 20th centuries

In the late 19th century, the control and direction of large areas of industry came into the hands of financiers. This period has been defined as "finance capitalism," characterized by the subordination of processes of production to the accumulation of money profits in a financial system.[6] Major characteristics of capitalism in this period included the establishment of large industrial cartels or monopolies; the ownership and management of industry by financiers divorced from the production process; and the development of a complex system of banking, an equity market, and corporate holdings of capital through stock ownership.[6] Increasingly, large industries and land became the subject of profit and loss by financial speculators. Financial capital, or economic capital, is any liquid medium or mechanism that represents wealth, or other styles of capital. ... For other uses, see Money (disambiguation). ... The Global Financial System refers to those financial institutions and regulations that act on the international level, as opposed to those that act on a national or regional level. ... This article is about the economic term. ... For other uses, see Bank (disambiguation). ... A stock market is a market for the trading of publicly held company stock and associated financial instruments (including stock options, convertibles and stock index futures). ... For other uses, see Stock (disambiguation). ... Speculation is the buying, holding, and selling of stocks, commodities, futures, currencies, collectibles, real estate, or any valuable thing to profit from fluctuations in its price as opposed to buying it for use or for income - dividends, rent etc. ...


Late 19th and early 20th century capitalism has also been described as an era of "monopoly capitalism," marked by movement from laissez-faire ideology and government policies to the concentration of capital into large monopolistic or oligopolistic holdings by banks and financiers, and characterized by the growth of large corporations and a division of labor separating shareholders, owners, and managers.[33] Although the concept of monopoly capitalism originated among Marxist theorists,[34] non-Marxist economic historians have also commented on the rise of monopolies and trusts in the period. Murray Rothbard, asserting that the large cartels of the late 19th century could not arise on the free market, argued that the "state monopoly capitalism" of the period was the result of interventionist policies adopted by governments, such as tariffs, quotas, licenses, and partnership between state and big business.[35] The theory of state monopoly capitalism (Stamocap or Stamokap theory) was initially a Marxist-Leninist doctrine popularised after World War II. Lenin had claimed in 1917 that World War I had transformed monopoly capitalism into state monopoly capitalism, but he did not publish any extensive theory about the topic. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... This article does not cite any references or sources. ... For other uses, see Corporation (disambiguation). ... A shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. ... Murray Newton Rothbard (March 2, 1926 – January 7, 1995) was an influential American economist, historian and natural law theorist belonging to the Austrian School of Economics who helped define modern libertarianism. ...


By the last quarter of the 19th century, the emergence of large industrial trusts had provoked legislation in the U.S. to reduce the monopolistic tendencies of the period. Gradually, the U.S. federal government played a larger and larger role in passing antitrust laws and regulation of industrial standards for key industries of special public concern. However, some economic historians believe these new laws were in fact designed to aid large corporations at the expense of smaller competitors.[36] By the end of the 19th century, economic depressions and boom and bust business cycles had become a recurring problem, although such problems were most likely caused by government intervention, not failures in free markets (Rand 1967, Friedman 1962, Bernstein 2005). In particular, the Long Depression of the 1870s and 1880s and the Great Depression of the 1930s affected almost the entire capitalist world, and generated discussion about capitalism’s long-term survival prospects. During the 1930s, Marxist commentators often posited the possibility of capitalism's decline or demise, often in alleged contrast to the ability of the Soviet Union to avoid suffering the effects of the global depression.[37] The Department of Justice building in Washington, D.C. is home to the United States antitrust enforcers United States antitrust law is the body of laws which prohibit anti-competitive behavior (monopoly) and unfair business practices. ... In economics, a depression is a term commonly used for a sustained downturn in the economy. ... In economics, the term boom and bust refers to the movement of an economy through economic cycles. ... The business cycle or economic cycle refers to the fluctuations of economic activity about its long term growth trend. ... The Long Depression (1873 – 1896) affected much of the world from the early 1870s until the mid-1890s and was contemporary with the Second Industrial Revolution. ... For other uses, see The Great Depression (disambiguation). ...


After the Great Depression

The economic recovery of the world's leading capitalist economies in the period following the end of the Great Depression and the Second World War — a period of unusually rapid growth by historical standards — eased discussion of capitalism's eventual decline or demise (Engerman 2001). Combatants Allied powers: China France Great Britain Soviet Union United States and others Axis powers: Germany Italy Japan and others Commanders Chiang Kai-shek Charles de Gaulle Winston Churchill Joseph Stalin Franklin Roosevelt Adolf Hitler Benito Mussolini Hideki Tōjō Casualties Military dead: 17,000,000 Civilian dead: 33,000...


In the period following the global depression of the 1930s, the state played an increasingly prominent role in the capitalistic system throughout much of the world. In 1929, for example, total U.S. government expenditures (federal, state, and local) amounted to less than one-tenth of GNP; from the 1970s they amounted to around one-third (EB). Similar increases were seen in all industrialized capitalist economies, some of which, such as France, have reached even higher ratios of government expenditures to GNP than the United States. These economies have since been widely described as "mixed economies." Measures of national income and output are used in economics to estimate the value of goods and services produced in an economy. ... A mixed economy is an economic system that incorporates aspects of more than one economic system. ...

The New York stock exchange traders' floor (1963)
The New York stock exchange traders' floor (1963)

During the postwar boom, a broad array of new analytical tools in the social sciences were developed to explain the social and economic trends of the period, including the concepts of post-industrial society and the welfare state.[13] The phase of capitalism from the beginning of the postwar period through the 1970s has sometimes been described as “state capitalism”, especially by Marxian thinkers.[15] Image File history File links Download high-resolution version (1024x682, 139 KB) Historic American Building Survey New York Stock Exchange File links The following pages on the English Wikipedia link to this file (pages on other projects are not listed): New York Stock Exchange ... Image File history File links Download high-resolution version (1024x682, 139 KB) Historic American Building Survey New York Stock Exchange File links The following pages on the English Wikipedia link to this file (pages on other projects are not listed): New York Stock Exchange ... Trades on the floor of the New York Stock Exchange always involve a face-to-face interaction. ... A post-industrial society is a society in which an economic transition has occurred from a manufacturing based economy to a service based economy, a diffusion of national and global capital, and mass privatization. ... There are three main interpretations of the idea of a welfare state: the provision of welfare services by the state. ... There are multiple definitions of the term state capitalism. ...


The long postwar boom ended in the late 1960s and early 1970s, and the situation was worsened by the rise of stagflation.[38] Exceptionally high inflation combined with slow output growth, rising unemployment, and eventually recession caused loss of credibility of Keynesian welfare-statist mode of regulation. Under the influence of Friedrich Hayek and Milton Friedman, Western states embraced policy prescriptions inspired by the laissez-faire capitalism and classical liberalism. In particular, monetarism, a theoretical alternative to Keynesianism that is more compatible with laissez-faire, gained increasing prominence in the capitalist world, especially under the leadership of Ronald Reagan in the U.S. and Margaret Thatcher in the UK in the 1980s. In the eyes of many economic and political commentators, collapse of the Soviet Union brought further evidence of superiority of market capitalism over state-centered economic systems. Stagflation, a portmanteau of the words stagnation and inflation, is a term in general use within modern macroeconomics used to describe a period of out-of-control price inflation combined with slow-to-no output growth, rising unemployment, and eventually recession. ... In macroeconomics, a recession is a decline in a countrys real gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. ... Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Classical liberalism (also known as traditional liberalism[1] and laissez-faire liberalism[2]) is a doctrine stressing the importance of human rationality, individual property rights, natural rights, the protection of civil liberties, constitutional limitations of government, free markets, and individual freedom from restraint as exemplified in the writings of Adam... Monetarism is a set of views concerning the determination of national income and monetary economics. ... Reagan redirects here. ... Margaret Hilda Thatcher, Baroness Thatcher, LG, OM, PC, FRS (née Roberts; born 13 October 1925) served as British Prime Minister from 1979 to 1990 and leader of the Conservative Party from 1975 until 1990, being the first and only woman to hold either post. ...


Globalization

Main article: Globalization

Although overseas trade has been associated with the development of capitalism for over five hundred years, some thinkers argue that a number of trends associated with globalization have acted to increase the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development. Today, these trends have bolstered the argument that capitalism should now be viewed as a truly world system.[13] However, other thinkers argue that globalization, even in its quantitative degree, is no greater now than during earlier periods of capitalist trade.[39] Economic globalization has had an impact on the worldwide integration of different cultures. ... Economic globalization has had an impact on the worldwide integration of different cultures. ... World order can refer to several different concepts: The international system comprised of international law, the United Nations, World Trade Organization, World Bank, International Monetary Fund, other international organizations and non-governmental organizations, as well as traditional international relations between states. ...


After the abandonment of the Bretton Woods system and the strict state control of foreign exchange rates, the total value of transactions in foreign exchange was estimated to be at least twenty times greater than that of all foreign movements of goods and services (EB). The internationalization of finance, which some see as beyond the reach of state control, combined with the growing ease with which large corporations have been able to relocate their operations to low-wage states, has posed the question of the 'eclipse' of state sovereignty, arising from the growing 'globalization' of capital.[40] Wikipedia does not have an article with this exact name. ...


Economic growth in the last half-century has been consistently strong. Life expectancy has almost doubled in the developing world since the postwar years and is starting to close the gap on the developed world where the improvement has been smaller. Infant mortality has decreased in every developing region of the world.[41] While scientists generally agree about the size of global income inequality, there is a general disagreement about the recent direction of change of it.[42] However, it is growing within particular nations such as China.[43] The book The Improving State of the World argues that economic growth since the industrial revolution has been very strong and that factors such as adequate nutrition, life expectancy, infant mortality, literacy, prevalence of child labor, education, and available free time have improved greatly. This article is about the measure of remaining life. ... is the death of infants in the first year of life. ... Income inequality metrics or income distribution metrics are techniques used by economists to measure the distribution of income among members of a society. ... The Improving State of the World: Why Were Living Longer, Healthier, More Comfortable Lives On a Cleaner Planet is a 2007 book by Indur M. Goklany. ... The Nutrition Facts table indicates the amounts of nutrients which experts recommend you limit or consume in adequate amounts. ... This article is about the measure of remaining life. ... is the death of infants in the first year of life. ... Children reading. ... A twelve year old American uneducated child laborer, Furman Owens, who stated Yes I want to learn but cant when I work all the time. ...


Political advocacy

Support

World's GDP per capita shows exponential acceleration since the beginning of the industrial revolution.
World's GDP per capita shows exponential acceleration since the beginning of the industrial revolution.[44]

Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price, and allocate resources. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system.[45][46] While the measurements are not identical, proponents argue that increasing GDP (per capita) is empirically shown to bring about improved standards of living, such as better availability of food, housing, clothing, and health care.[47] The decrease in the number of hours worked per week and the decreased participation of children and the elderly in the workforce have been attributed to capitalism.[48][49][50][51] Proponents also believe that a capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. To their thinking, this potential is much greater than in either traditional feudal or tribal societies or in socialist societies. Image File history File links Gdp_chart. ... Image File history File links Gdp_chart. ... GDP is an acronym which can stand for more than one thing: (in economics) an abbreviation for Gross Domestic Product. ... GDP redirects here. ... Capacity utilization is a concept in Economics which refers to the extent to which an enterprise or a nation actually uses its installed productive capacity. ... The standard of living refers to the quality and quantity of goods and services available to people and the way these services and goods are distributed within a population. ... For other persons named Adam Smith, see Adam Smith (disambiguation). ... Feudalism comes from the Late Latin word feudum, itself borrowed from a Germanic root *fehu, a commonly used term in the Middle Ages which means fief, or land held under certain obligations by feodati. ... http://www. ...


Milton Friedman has argued that the economic freedom of competitive capitalism is a requisite of political freedom. Friedman argued that centralized control of economic activity is always accompanied by political repression. In his view, transactions in a market economy are voluntary, and the wide diversity that voluntary activity permits is a fundamental threat to repressive political leaders and greatly diminish power to coerce. Friedman's view was also shared by Friedrich Hayek and John Maynard Keynes, both of whom believed that capitalism is vital for freedom to survive and thrive.[52][53] Milton Friedman (July 31, 1912 – November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... Freedom is the right, or the capacity, of self-determination, as an expression of the individual will. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Keynes redirects here. ...


Austrian School economists have argued that capitalism can organize itself into a complex system without an external guidance or planning mechanism. Friedrich Hayek coined the term "catallaxy" to describe what he considered the phenomenon of self-organization underpinning capitalism. From this perspective, in process of self-organization, the profit motive has an important role. From transactions between buyers and sellers price systems emerge, and prices serve as a signal as to the urgent and unfilled wants of people. The promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Thus the activities of millions of people, each seeking his own interest, are coordinated.[54] Catallactics is the praxeological theory of the way the market economy reaches exchange ratios and prices. ... Self-organization refers to a process in which the internal organization of a system, normally an open system, increases automatically without being guided or managed by an outside source. ... This article or section does not cite any references or sources. ...


This decentralized system of coordination is viewed by some supporters of capitalism as one of its greatest strengths. They argue that it permits many solutions to be tried, and that real-world competition generally finds a good solution to emerging challenges. In contrast, they argue, central planning often selects inappropriate solutions as a result of faulty forecasting. However, in all existing modern economies, the state conducts some degree of centralized economic planning (using such tools as allowing the country's central bank to set base interest rates), ostensibly as an attempt to improve efficiency, attenuate cyclical volatility, and further particular social goals. Proponents who follow the Austrian School argue that even this limited control creates inefficiencies because we cannot predict the long-term activity of the economy. Milton Friedman, for example, has argued that the Great Depression was caused by the erroneous policy of the Federal Reserve.[25] A planned economy is an economic system in which decisions about the production, allocation and consumption of goods and services are planned ahead of time, usually in a centralized fashion, though some proposed systems favour decentralized planning. ... This article refers to an economy controlled by the state. ... An interest rate is the rental price of money. ... For other uses, see The Great Depression (disambiguation). ... The Fed redirects here. ...


Ayn Rand was a prominent philosophical supporter of laissez-faire capitalism; her novel Atlas Shrugged was one of the most influential publications ever written on the subject of business.[55] The first person to endow capitalism with a new code of morality (Rational Selfishness),[56] she did not justify capitalism on the grounds of pure "practicality" (that it is the best wealth-creating system), or the supernatural (that God or religion supports capitalism), or because it benefits the most people, but maintained that it is the only morally valid socio-political system because it allows people to be free to act in their rational self-interest.[57] Ayn Rand (IPA: , February 2 [O.S. January 20] 1905 – March 6, 1982), born Alisa Zinovyevna Rosenbaum (Russian: ), was a Russian-born American novelist and philosopher. ... Laissez-faire capitalism is, roughly stated, the doctrine that the free market functions to the greatest good when left unfettered and unregulated by government. ... For the film, see Atlas Shrugged (film). ... For other uses, see Supernatural (disambiguation). ... This article is about the term God in the context of monotheism and henotheism. ... For other uses, see Politics (disambiguation). ...


Criticism

Main articles: Criticisms of capitalism and Anti-capitalism

Capitalism has met with strong opposition throughout its history. Most of the criticism came from the left, but some from the right, and some from religious elements. Many 19th century conservatives were among the most strident critics of capitalism, seeing market exchange and commodity production as threats to cultural and religious traditions. Some critics of capitalism consider economic regulation necessary in order to reduce corruption, negligence, and numerous of other problems caused by free markets. To meet Wikipedias quality standards, this article or section may require cleanup. ... This article lists ideologies opposed to capitalism and describes them briefly. ...


Prominent leftist critics have included socialists like Karl Marx, Frantz Fanon, Vladimir Lenin, Mao Zedong, Leon Trotsky, Antonio Gramsci and Rosa Luxemburg, and anarchists including Benjamin Tucker, Lysander Spooner, Pierre-Joseph Proudhon, Mikhail Bakunin, Peter Kropotkin, Emma Goldman, Murray Bookchin, Rudolf Rocker, Noam Chomsky, and others. Movements like the Luddites, Narodniks, Shakers, Utopian Socialists and others have opposed capitalism for various reasons. Marxism advocated a revolutionary overthrow of capitalism that would lead eventually to communism. Marxism also influenced social democratic and labour parties, which seek change through existing democratic channels instead of revolution, and believe that capitalism should be heavily regulated rather than abolished. Many aspects of capitalism have come under attack from the relatively recent anti-globalization movement. Socialism refers to the goal of a socio-economic system in which property and the distribution of wealth are subject to control by the community. ... Karl Heinrich Marx (May 5, 1818 – March 14, 1883) was a 19th century philosopher, political economist, and revolutionary. ... Frantz Fanon (July 20, 1925 – December 6, 1961) was an author from Martinique, essayist, psychoanalyst, and revolutionary. ... Lenin redirects here. ... Mao redirects here. ... Leon Trotsky (Russian:  , Lev Davidovich Trotsky, also transliterated Leo, Lyev, Trotskii, Trotski, Trotskij, Trockij and Trotzky) (November 7 [O.S. October 26] 1879 – August 21, 1940), born Lev Davidovich Bronstein (), was a Ukrainian-born Bolshevik revolutionary and Marxist theorist. ... Antonio Gramsci (IPA: ) (January 22, 1891 – April 27, 1937) was an Italian writer, politician and political theorist. ... Rosa Luxemburg Rosa Luxemburg (March 5, 1870 or 1871 – January 15, 1919, in Polish Róża Luksemburg) was a Jewish Polish-born Marxist political theorist, socialist philosopher, and revolutionary. ... Anarchist redirects here. ... Benjamin Ricketson Tucker Benjamin Ricketson Tucker (April 17, 1854 – June 22, 1939) was the leading proponent of American individualist anarchism in the 19th century. ... Lysander Spooner (January 19, 1808 – May 14, 1887) was an American individualist anarchist political philosopher, abolitionist, and legal theorist of the 19th century. ... Theory and practice Issues History Culture By region Lists Related Anarchism Portal Politics Portal ·        Pierre-Joseph Proudhon (pronounced [ˈpruːd É’n] in British English, [pʁu dɔ̃] in French) (January 15, 1809 – January 19, 1865) was a French mutualist political philosopher of the socialist tradition. ... Mikhail Alexandrovich Bakunin (Russian: Михаил Александрович Бакунин, Michel Bakunin on the grave in Bern), (May 18 (30 N.S.), 1814 – June 19 (July 1 N.S.), 1876) was a well-known Russian revolutionary, and often considered one of the “fathers of modern anarchism. Born in the Russian Empire to a family of Russian... Prince Peter (Pyotr) Alexeyevich Kropotkin (Russian: ) (December 9, 1842–February 8, 1921) was one of Russias foremost anarchists and one of the first advocates of anarchist communism: the model of society he advocated for most of his life was that of a communalist society free from central government. ... Emma Goldman, circa 1910 Emma Goldman (June 27, 1869 – May 14, 1940) was an anarchist known for her political activism, writing, and speeches. ... Murray Bookchin[1] (born January 14, 1921) is an American libertarian socialist speaker and writer, and founder of the Social Ecology school of anarchist and ecological thought. ... Rudolf Rocker (1873-1958) Rudolf Rocker (March 25, 1873 - September 19, 1958) was an anarcho-syndicalist writer, historian and prominent activist. ... Avram Noam Chomsky (born December 7, 1928) is an American linguist, philosopher, political activist, author, and lecturer. ... The Luddites were a social movement of English textile artisans in the early nineteenth century who protested — often by destroying textile machines — against the changes produced by the Industrial Revolution, which they felt threatened their livelihood. ... Narodniks was the name for Russian revolutionaries of the 1860s and 1870s. ... This article or section does not adequately cite its references or sources. ... Utopian socialism is a term used to define the first currents of modern Socialist thought. ... This article is about the form of society and political movement. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... The Labour Party has been, since its founding in the early 20th century, the principal political party of the left in the United Kingdom. ... Wikipedia does not have an article with this exact name. ...


Some religions criticize or outright oppose specific elements of capitalism. Some traditions of Judaism, Christianity, and Islam forbid lending money at interest, although methods of Islamic banking have been developed. Christianity has been a source of both praise and criticism for capitalism, particularly its materialist aspects.[58] The first socialists drew many of their principles from Christian values (see Christian socialism), against "bourgeois" values of profiteering, greed, selfishness, and hoarding. Christian critics of capitalism may not oppose capitalism entirely, but support a mixed economy in order to ensure adequate labor standards and relations, as well as economic justice. There are many Protestant denominations (particularly in the United States) who have reconciled with — or are ardently in favor of — capitalism, particularly in opposition to secular socialism. However, in the U.S. and around the world there are many Protestant Christian traditions which are critical of, or even oppose, capitalism. Another critic is the Indian philosopher P.R. Sarkar, founder of the Ananda Marga movement, who developed the Social Cycle Theory and proposed a solution called the Progressive Utilization Theory (PROUT).[59][60] This article or section does not cite its references or sources. ... Topics in Christianity Movements · Denominations Ecumenism · Relation to other religions Preaching · Prayer Music · Liturgy · Calendar Symbols · Art · Criticism Christianity Portal This box:      Christianity is a monotheistic[1] religion centered on the life and teachings of Jesus of Nazareth as presented in the New Testament. ... For people named Islam, see Islam (name). ... Of Usury, from Brants Stultifera Navis (the Ship of Fools); woodcut attributed to Albrecht Dürer Usury (//,comes from the Medieval Latin usuria, interest or excessive interest, from the Latin usura interest) originally meant the charging of interest on loans. ... Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. ... Materialism refers to how a person or group chooses to spend their resources, particularly money and time. ... Religious socialism Key Issues People and organizations Related subjects Christian socialism generally refers to those on the Christian left whose politics are both Christian and socialist and who see these two things as being interconnected. ... Protestantism is a general grouping of denominations within Christianity. ... Prabhat Rainjan Sarkar was born in Bihar, India on a full moon day in May of 1921 to a family belonging to the intellectual caste of Brahmins. ... Ananda Marga, officially known as Ananda Marga Pracharaka Samgha (AMPS) meaning the organization for the propagation of the path of bliss is a spiritual movement, founded in Jamalpur, Bihar, India in 1955 by Prabhat Ranjan Sarkar (1921-1990), known by his spiritual name of Shrii Shrii Anandamurti. ... The Social Cycle Theory, also known as the Law of Social Cycle is a theory of social motivity propounded by the Indian philosopher and religious leader P.R. Sarkar. ... Progressive Utilization Theory or PROUT is a socio-economic theory developed in 1959 by Indian philosopher and spiritual leader Prabhat Rainjan Sarkar (1921-1990). ...


Some problems said to be associated with capitalism include: unfair and inefficient distribution of wealth and power; a tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism and various forms of economic and cultural exploitation; and phenomena such as social alienation, inequality, unemployment, and economic instability. Critics have maintained that there is an inherent tendency towards oligolopolistic structures when laissez-faire is combined with capitalist private property. Because of this tendency either laissez-faire, or private property, or both, have drawn fire from critics who believe an essential aspect of economic freedom is the extension of the freedom to have meaningful decision-making control over productive resources to everyone. Economist Branko Horvat explains, "it is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom."[61] Differences in national income equality around the world as measured by the national Gini coefficient. ... This article is about the economic term. ... This article does not cite any references or sources. ... Look up Oligarchy in Wiktionary, the free dictionary. ... For the computer game, see Imperialism (computer game). ... Exploitation means many different things. ... This article does not cite any references or sources. ... This article is about inequalities in mathematics. ... CIA figures for world unemployment rates, 2006 Unemployment is the state in which a person is without work, available to work, and is currently seeking work. ...


Near the start of the 20th century, Vladimir Lenin claimed that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism.[62] This concept of political economy concerning the relationship between economic and political power among and within states includes critics of capitalism who assign to it responsibility for not only economic exploitation, but imperialist, colonialist and counter-revolutionary wars, repressions of workers and trade unionists, genocides, massacres, and so on. The Politics series Politics Portal This box:      Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... Exploitation means many different things. ... For the computer game, see Imperialism (computer game). ... Colonialism is a system in which a state claims sovereignty over territory and people outside its own boundaries, often to facilitate economic domination over their resources, labor, and often markets. ... A counterrevolutionary is anyone who opposes a revolution, particularly those who act after a revolution to try to overturn or reverse it, in full or in part. ... Genocide has been defined as the deliberate killing of people based on their ethnicity, nationality, race, religion, or (sometimes) politics, as well as other deliberate actions leading to the physical elimination of any of the above categories. ... Massacres are individual events of deliberate mass killing, especially of noncombatant civilians or other innocents. ...


Some environmentalists claim that capitalism requires continual economic growth, and will inevitably deplete the finite natural resources of the earth, and other broadly utilized resources. Such thinkers, including Murray Bookchin, have argued that capitalist production passes on environmental costs to all of society, and is unable to adequately mitigate its impact upon ecosystems and the biosphere at large. Murray Bookchin[1] (born January 14, 1921) is an American libertarian socialist speaker and writer, and founder of the Social Ecology school of anarchist and ecological thought. ...


Some labor historians and scholars, such as Immanuel Wallerstein, Tom Brass and, latterly Marcel van der Linden, have also argued that unfree labor — the use of a labor force comprised of slaves, indentured servants, criminal convicts, political prisoners, and/or other coerced persons — is compatible with capitalist relations.[63] til the development of wage labour. ... Immanuel Maurice Wallerstein (born 28 September 1930, New York City) is a U.S. sociologist by credentials, but a historical social scientist, or world-systems analyst by trade. ... Unfree labour is a generic or collective term for those work relations, especially in modern or early modern history, in which people are employed against their will by the threat of destitution, detention, violence (including death), or other extreme hardship to themselves, or to members of their families. ... Slave redirects here. ... An indentured servant (also called a bonded laborer) is a labourer unde from the employer in exchange for an extension to the period of their indenture, which could thereby continue indefinitely. ...


Democracy, the state, and legal frameworks

The relationship between the state, its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in a formal property system where ownership and transactions are clearly recorded.[64] According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the Enclosure Acts in England, and similar legislation elsewhere, were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to the development of capitalism.[65][66] The theory of capitalism describes the essential features of capitalism and how it functions. ... For other uses, see State (disambiguation). ... For the Spanish conquistador, see Hernando de Soto (explorer). ... The enclosure acts were a series of agricultural laws passed by Parliament in 19th century England. ... For other uses, see England (disambiguation). ... See primitive accumulation of capital ...


New institutional economics, a field pioneered by Douglass North, stresses the need of capitalism for a legal framework to function optimally, and focuses on the relationship between the historical development of capitalism and the creation and maintenance of political and economic institutions.[67] In new institutional economics and other fields focusing on public policy, economists seek to judge when and whether governmental intervention (such as taxes, welfare, and government regulation) can result in potential gains in efficiency. According to Gregory Mankiw, a New Keynesian economist, governmental intervention can improve on market outcomes under conditions of "market failure," or situations in which the market on its own does not allocate resources efficiently.[68] The idea of market failure is that markets fail to realize all potential gains from trade. This means that markets fail to deliver perfect economic results. Critics of market failure theory, like Ronald Coase, Harold Demsetz, and James M. Buchanan argue that government programs and policies also fall short of absolute perfection. Market failures are often small, and government failures are sometimes large. It is therefore the case that imperfect markets are often better than imperfect governmental alternatives. While all nations currently have some kind of market regulations, the desirable degree of regulation is disputed. New institutional economics (NIE) may be characterized as a new perspective in economics. ... Douglass Cecil North (born November 5, 1920) is co-recipient of the 1993 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. ... Taxes redirects here. ... This article is about financial assistance paid by government organizations. ... Regulatory economics is the economics of regulation, in the sense of the application of law by government that is used for various purposes, such as centrally-planning an economy, remedying market failure, enriching well-connected firms, or benefiting politicians. ... Categories: Stub | 1958 births | Economists ... New Keynesian economics developed partly in response to new classical economics. ... Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. ... Ronald Harry Coase (b. ... Harold Demsetz (born 1930, Chicago, Illinois) is a professor emeritus of economics at UCLA. // Demsetz (1988) contains an autobiographical essay. ... For other persons named James Buchanan, see James Buchanan (disambiguation). ...


The relationship between democracy and capitalism is a contentious area in theory and popular political movements. The extension of universal adult male suffrage in 19th century Britain occurred along with the development of industrial capitalism, and democracy became widespread at the same time as capitalism, leading many theorists to posit a causal relationship between them, or that each affects the other. However, in the 20th century, according to some authors, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, monarchies, and single-party states,[13] while it has been observed[who?] that some ostensibly democratic regimes such as the Bolivarian Republic of Venezuela and Anarchist Catalonia have been expressly anti-capitalist.[69] While some thinkers argue that capitalist development more-or-less inevitably eventually leads to the emergence of democracy, others dispute this claim. Research on the democratic peace theory further argue that capitalist democracies rarely make war with one another and have little internal violence.[70][71] However critics of the democratic peace theory note that democratic capitalist states may fight infrequently or never with other democratic capitalist states because of Political similarity or political stability rather than because they are democratic (or capitalist). Fascism is a term used to describe authoritarian nationalist political ideologies or mass movements that are concerned with notions of cultural decline or decadence. ... Anarchist Catalonia (July 21, 1936 - February 10, 1939) was the stateless territory and anarchist society in part of the territory of modern Catalonia during the Spanish Civil War, eventually headed by Buenaventura Durruti. ... The democratic peace theory, liberal peace theory,[1] or simply the democratic peace is a theory and related empirical research in international relations, political science, and philosophy which holds that democracies — usually, liberal democracies — never or almost never go to war with one another. ...


Some commentators argue that though economic growth under capitalism has led to democratization in the past, it may not do so in the future. Under this line of thinking, authoritarian regimes have been able to manage economic growth without making concessions to greater political freedom.[72][73]


In response to criticism of the system, some proponents of capitalism have argued that its advantages are supported by empirical research. For example, advocates of different Index of Economic Freedom point to a statistical correlation between nations with more economic freedom (as defined by the Indices) and higher scores on variables such as income and life expectancy, including the poor in these nations. Some peer-reviewed studies find evidence for causation. Map of Economic Freedom released by the Heritage Foundation. ...


Related articles

Capitalism Portal

Image File history File links Portal. ... An anti-capitalist poster printed by the Industrial Workers of the World in 1911. ... Capitalism has a variety of different and competing definitions. ... An economic ideology discerns itself from a pure economic theory because it is normative rather than just explanatory in its approach. ... This article is about the philosophy of Ayn Rand. ...

Forms of capitalism

Anarcho-capitalism refers to an anti-statist philosophy that embraces capitalism as one of its foundational principles. ... Crony capitalism is a pejorative term describing an allegedly capitalist economy in which success in business depends on an extremely close relationship between the businessman and the state institutions of politics and government, rather than by the espoused equitable concepts of the free market, open competition, and economic liberalism. ... Late capitalism is a term sometimes used to refer to capitalism of the late 20th century. ... The liberal theory of economics is the theory of economics developed in the Enlightenment, and believed to be first fully formulated by Adam Smith. ... Post-capitalism or postcapitalism is a hypothetical future economic system in which economy is so radically changed as to be no longer unambiguously called capitalism by our current definition. ... Technocapitalism is a term used by some to describe the changes in capitalism brought about by the emergence of the high technology sector of the economy. ...

Notes

  1. ^ Private ownership is sometimes used as a synonym for individual ownership, however the term "private" may also be used to refer to collective ownership of individuals in the form of corporate ownership. Therefore, "privately owned" in the context of this definition means not owned or controlled by the state.
  2. ^ Screms, John (2004). Understanding Principles of Politics and the State. PageFree Publishing, 234. 
  3. ^ Obrinsky, Mark (1983). Profit Theory and Capitalism. University of Pennsylvania Press, 1. 
  4. ^ a b (2006) Capitalism. Encyclopedia Britannica. 
  5. ^ a b Banaji, Jairus (2007). "Islam, the Mediterranean and the rise of capitalism". Journal Historical Materialism 15: 47-74. Brill Publishers. 
  6. ^ a b c d e f g Scott, John (2005). Industrialism: A Dictionary of Sociology. Oxford University Press. 
  7. ^ Tucker, Irvin B. (1997). Macroeconomics for Today, 553. 
  8. ^ Case, Karl E. (2004). Principles of Macroeconomics. Prentice Hall. 
  9. ^ Hunt, E.K. (2002). History of Economic Thought: A Critical Perspective. M.E. Sharpe, 92. 
  10. ^ (1991) Blackwell Encyclopedia of Political Thought. Blackwell Publishing, 91. 
  11. ^ Skousen, Mark (2001). The Making of Modern Economics: The Lives and Ideas of the Great Thinkers. M.E. Sharpe, 98-102. 
  12. ^ Calhoun, Craig (2002). Capitalism: Dictionary of the Social Sciences. Oxford University Press. 
  13. ^ a b c d e f g h Burnham, Peter (2003). Capitalism: The Concise Oxford Dictionary of Politics. Oxford University Press. 
  14. ^ Karl Marx. Capital. v. 3. Chapter 47: Genesis of capitalist ground rent. Marxists. Retrieved on 2008-02-26.
  15. ^ a b Early proponents of the term "state capitalism" include, for example, Tony Cliff, Raya Dunayevskaya, CLR James and Paul Mattick. Ernest Mandel has been a particularly prominent advocate of the analysis of post-WWII conditions as state capitalism. (See, for example, Mandel's The Theory of “State Capitalism”.Ernest Mandel (1951-06-01). The Theory of “State Capitalism”. Archived from the original on 2006-10-02. Retrieved on 2008-02-26.
  16. ^ Imperialism, the Highest Stage of Capitalism. Marxists (1916). Retrieved on 2008-02-26.
  17. ^ Lewis, Herbert S. (1998). "The Misrepresentation of Anthropology and its Consequences". American Anthropologist 100: 716-731. 
  18. ^ See, for example, the works of Stephen Resnick and Richard Wolff.
  19. ^ Ste. Croix, G. E. M. de (1982). The Class Struggle in the Ancient Greek World. 
  20. ^ Kilcullen, John (1996). MAX WEBER: ON CAPITALISM. Macquarie University. Retrieved on 2008-02-26.
  21. ^ The Spirit of Capitalism. University of Virginia. Retrieved on 2008-02-26.
  22. ^ [www.economyandsociety.com/events/Ethic&SpiritCapsm_Conf_Agenda2.pdf Conference Agenda]. Economy and Society. Retrieved on 2008-02-26.
  23. ^ Paul Mattick. Marx and Keynes: the limits of the mixed economy. Marxists. Retrieved on 2008-02-26.
  24. ^ Felderer, Bernhard. Macroeconomics and New Macroeconomics. 
  25. ^ a b Ben Bernanke (2002-11-08). Remarks by Governor Ben S. Bernanke. The Federal Reserve Board. Retrieved on 2008-02-26.
  26. ^ Yonary, Yuval P. (1998). The Struggle Over the Soul of Economics. Princeton University Press, 29. ISBN 0691034192. 
  27. ^ Partnership and Profit in Medieval Islam by Abraham L. Udovitch
  28. ^ Shatzmiller, Maya (1994). Labour in the Medieval Islamic World. Brill Publishers, 402-403. ISBN 9004098968. 
  29. ^ Labib, Subhi Y. (1969). "Capitalism in Medieval Islam". The Journal of Economic History 29: 79-96. 
  30. ^ A Market Economy in the Early Roman Empire
  31. ^ Clark, Sir George (1961). The Seventeenth Century. New York: Oxford University Press, 24. 
  32. ^ Hume, David (1752). Political Discourses. Edinburgh: A. Kincaid & A. Donaldson. 
  33. ^ Scott, John (2005). A Dictionary of Sociology. Oxford University Press. 
  34. ^ Charlene Gannage (1980). "E.S. Varga and the Theory of State Monopoly Capitalism". Review of Radical Political Economics 12 (3): 36-49. doi:10.1177/048661348001200304. 
  35. ^ Stromberg, Joseph R. (2001). "The Role of State Monopoly Capitalism in the American Empire". Journal of Libertarian Studies 15 (3): 74-75. 
  36. ^ Rothbard, Murray. A History of Money and Banking in the United States: The Colonial Era to World War II, 185-186. 
  37. ^ Engerman, Stanley L. (2001). The Oxford Companion to United States History. Oxford University Press. 
  38. ^ Barnes, Trevor J.. Reading economic geography. Blackwell Publishing, 127. ISBN 063123554X. 
  39. ^ Henwood, Doug (2003-10-01). After the New Economy. New Press. ISBN 1-56584-770-9. 
  40. ^ Evans, Peter (1997-10-01). "The Eclipse of the State? Reflections on Stateness in an Era of Globalization". World Politics 50 (1): 62-87. 
  41. ^ Pfefferman, Guy (2002-04-19). The Eight Losers of Globalization. Retrieved on 2008-02-26.
  42. ^ Milanovic, Branko (2006-08-01). "Global Income Inequality: What It Is And Why It Matters?". DESA Working Paper 26: 9. 
  43. ^ Brooks, David (2004-11-27). Good News about Poverty. Retrieved on 2008-02-26.
  44. ^ Angus Maddison (2001). The World Economy: A Millennial Perspective. Paris: OECD. ISBN 92-64-18998-X. 
  45. ^ Robert E. Lucas Jr.. The Industrial Revolution: Past and Future. Federal Reserve Bank of Minneapolis 2003 Annual Report. Retrieved on 2008-02-26.
  46. ^ J. Bradford DeLong. Estimating World GDP, One Million B.C. – Present. Retrieved on 2008-02-26.
  47. ^ Clark Nardinelli. Industrial Revolution and the Standard of Living. Retrieved on 2008-02-26.
  48. ^ Barro, Robert J. (1997). Macroeconomics. MIT Press. ISBN 0262024365. 
  49. ^ Labor and Minimum Wages. Capitalism.org. Retrieved on 2008-02-26.
  50. ^ Woods, Thomas E. (2004-04-05). Morality and Economic Law: Toward a Reconciliation. Ludwig von Mises Institute. Retrieved on 2008-02-26.
  51. ^ Norberg, Johan. Three Cheers for Global Capitalism. The American Enterprise. Retrieved on 2008-02-26.
  52. ^ Friedrich Hayek (1944). The Road to Serfdom. University Of Chicago Press. ISBN 0-226-32061-8. 
  53. ^ Bellamy, Richard (2003). The Cambridge History of Twentieth-Century Political Thought. Cambridge University Press, 60. ISBN 0-521-56354-2. 
  54. ^ Walberg, Herbert (2001). Education and Capitalism. Hoover Institution Press, 87-89. ISBN 0-8179-3972-5. 
  55. ^ Ayn Rand's Literature of Capitalism, The New York Times
  56. ^ The Virtue of Selfishness
  57. ^ Capitalism: The Unknown Ideal
  58. ^ III. The Social Doctrine of the Church. The Vatican. Retrieved on 2008-02-26.
  59. ^ Dada Maheshvarananda. After Capitalism. Retrieved on 2008-02-26.
  60. ^ proutworld. ProutWorld. Retrieved on 2008-02-26.
  61. ^ Horvat, B.. The Political Economy of Socialism. Armonk, NY: M.E.Sharpe Inc., 11. 
  62. ^ Vladimir Lenin. Imperialism: The Highest Stage of Capitalism. Retrieved on 2008-02-26.
  63. ^ That unfree labor is acceptable to capital was argued during the 1980s by Tom Brass. See Towards a Comparative Political Economy of Unfree Labor (Cass, 1999). Marcel van der Linden. "Labour History as the History of Multitudes", Labour/Le Travail, 52, Fall 2003, p. 235-244. Retrieved on 2008-02-26.
  64. ^ Hernando de Soto. The mystery of capital. Retrieved on 2008-02-26.
  65. ^ Karl Marx. Capital, v. 1. Part VIII: primitive accumulation. Retrieved on 2008-02-26.
  66. ^ N. F. R. Crafts (April 1978). "Enclosure and labor supply revisited". Explorations in economic history (15): 172–183. .
  67. ^ North, Douglass C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press. 
  68. ^ (1997) Principles of Economics. Harvard University, 10. 
  69. ^ On the democratic nature of the Venezuelan state, see [1]. On the current government's rejection of capitalism in favor of socialism, see[2] and[3]
  70. ^ James Lee Ray. Does democracy cause peace. Retrieved on 2008-02-26.
  71. ^ Hegre, Håvard. Towards a democratic civil peace? : opportunity, grievance, and civil war 1816-1992. Retrieved on 2008-02-26.
  72. ^ Mesquita, Bruce Bueno de (2005-09). Development and Democracy. Foreign Affairs. Retrieved on 2008-02-26.
  73. ^ Single, Joseph T. (2004-09). Why Democracies Excel. New York Times. Retrieved on 2008-02-26.

2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... Tony Cliff (May 20, 1917 – May 9, 2000) was a Trotskyist revolutionary activist. ... Raya Dunayevskaya (1910 – 1987) was a Ukrainian born immigrant to the United States of America who was a member of the Socialist Workers Party (SWP). ... Cyril Lionel Robert James (4 January 1901–19 May 1989) was a journalist, and a prominent socialist theorist and writer. ... Paul Mattick (13. ... Ernest Mandel Ernest Ezra Mandel, also known by various pseudonyms such as Ernest Germain, Pierre Gousset, Henri Vallin, Walter etc. ... There are multiple definitions of the term state capitalism. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 275th day of the year (276th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... Also see: 2002 (number). ... is the 312th day of the year (313th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... A digital object identifier (or DOI) is a standard for persistently identifying a piece of intellectual property on a digital network and associating it with related data, the metadata, in a structured extensible way. ... Also see: 2002 (number). ... is the 109th day of the year (110th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 331st day of the year (332nd in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 95th day of the year (96th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... The Virtue of Selfishness: A New Concept of Egoism is a 1964 collection of essays and papers by Ayn Rand and Nathaniel Branden. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Anno Domini (or common era), in accordance to the Gregorian calendar. ... is the 57th day of the year in the Gregorian calendar. ...

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External links

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