what is capitalism? O capitalism it is an economic system that works on the basis of the production of wealth with to profit. In addition, in this system, private property and capital accumulation, being the predominant economic system throughout the world.
Added to this, capitalism is not restricted to the economic sphere and is intrinsically linked to the political, cultural, ethical, etc. environment.
Index
- how did it come about
- How Capitalism Works
- Main characteristics of capitalism
-
phases of capitalism
- commercial capitalism
- Industrial Capitalism
- Financial Capitalism
how did it come about
Capitalism began between the 13th and 15th centuries, in low middle age. However, its insertion as predominant economic model it didn't happen quickly, but rather slowly and gradually.
It began with the formation of burgos, small centers destined for commerce. However, there was great difficulty to prosper because they were opposed to the great economic system of the time, the Feudalism, and had the Catholic church as an opponent, as this condemned usury, that is, interest charged on a loan.
However, even with these oppositions, this trading system began to grow and bourgeoisie, the owners and active people in the villages, started to gain power with possession of wealth. This system grew and created a strong culture of capital accumulation.
Added to this, the urbanization of Europe was another favorable factor for the propagation and evolution of the capitalist system.
It is concluded that capitalism emerged due to changes in the feudal system, such as the rise of the bourgeoisie, the increased urbanization, the emergence of new techniques for manufacturing goods and the improvement of means of transport.
However, it is noteworthy that capitalism went through several modifications to reach the way we see it today, but throughout its history the main objective has always been to make a profit.
How Capitalism Works
Capitalism is divided into two basic classes, the one that owns all the profits and the means of production, called capitalists, and the one that offers its workforce, called the class of proletarians.
Thus, the system works in such a way that the proletarians offer their workforce, selling it to the capitalists in exchange for wage. The products that are produced in this system are sold on the market and their price is determined by the Supply and Demand Law.
In addition, capitalism puts the free market, that is, without State interference.
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Main characteristics of capitalism
- Private ownership of the means of production;
- Accumulation of capital / wealth;
- Profit;
- Salaried work;
- Control of the production system;
- Market economy;
- Social classes.
phases of capitalism
Capitalism is divided into three phases with different approaches, namely: o commercial capitalism, O industrial it's the financial.
commercial capitalism
This phase of capitalism is also called “Pre-Capitalism”, or “Commercial Phase”. The period that this phase was in force was from the 15th to the 18th century, comprised by the transition from feudalism to capitalism.
It was at this moment that the vision of wealth changed from a greater accumulation of raw materials and spices to obtaining and accumulating capital through trade and the conquest of colonies.
Industrial Capitalism
This phase came together with Industrial Revolution and the French Revolution, occurred in the 18th century. The great change in this phase was the transformation of the means of production, with the change in the way of manufacturing manufactured products and a great increase in production scales.
Furthermore, the French Revolution allowed the stabilization of power in the hands of the bourgeoisie, together with industrialization and the great growth of cities.
Financial Capitalism
This phase is also called monopolist, being based on the laws of banks, in large corporations through industrial and financial monopoly. It began with the large investment of banks in the industrial sector, holding a large part of the power in this area.
Thus, the economy started to turn to speculative and financial practices, with the emergence of shares traded as commodities and this phase extends to the present day.
See too:
- Capitalist Countries
- phases of capitalism
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