Definition of Financial Capitalism (What it is, Concept and Definition)

Financial capitalism, also called monopoly capitalism, corresponds to a type of economy in which big commerce and big industry are controlled by the economic power of commercial banks and other financial institutions.

This capitalist model lasted from the end of the 19th century until the 1929 crisis, directly linked to the strong economic growth that was registered in this period of Industrial Revolution.

Financial capitalism was the result of the transport revolution, which led to profound changes in economic life, such as technological innovations, expansion of markets, among others, and required many investments that were only within reach of large companies.

Financial capitalism was made possible by the influence of liberalism, which led to the disappearance of state tutelage over the economy.

Find out more about the meaning of Liberalism.

One of the most important consequences of the accelerated growth of the capitalist economy was the process of concentration and centralization of capital.

Several companies emerged and grew rapidly, such as industries, banks, stockbrokers, commercial houses etc. This period was marked by the practice of monopoly, which is when a single company dominates the entire market, in addition to oligopolies, which correspond to the union of some companies retaining control of prices and raw materials in their hands, thus preventing the development of other companies.

Learn more about Characteristics of Capitalism.

Industrial Capitalism

Along with financial capitalism came industrial capitalism, which is when companies evolved from manufacturing to mechanized.

Another type was the informational capitalism, which has information technology as the paradigm of social changes that restructured the capitalist mode of production.

Learn more about the meaning of:

  • Capitalism
  • Capitalist
  • capital in economy
  • Industrial Capitalism

Meaning of Garbage (What it is, Concept and Definition)

Garbage is everything that is no longer useful and is thrown away. It is any solid material origi...

read more

Meaning of theocratic state (What it is, Concept and Definition)

theocratic state is a country or nation that has a system of government that submit to the norms ...

read more

Meaning of Logical Reasoning (What it is, Concept and Definition)

Logical reasoning it is a process of thought structuring according to the norms of logic that all...

read more