Capitalist economy definition. Basic types of capitalism. Main features of capitalism

Based on the rich historical experience of many countries, four main types of capitalism can be distinguished (Fig. 1.11). Of these, as already noted, the most unsightly initial capitalism - the period of spontaneous formation of the market system and the so-called “initial accumulation of capital” (Smith), during which the funds needed to start a business are concentrated in the hands of a relatively small group of the most energetic people capable of entrepreneurship. This is where the inevitable: redistribution of property, enrichment of some people at the expense of others, sharp stratification of society, a lot of abuses and lawlessness (seizure of someone else’s or common property, deception, inhumanity and violence, actions on the “grab and run” principle, super-exploitation of hired labor, predatory attitude towards the nature of the crime, etc.). No wonder the patriarch of American industrial business Henry Ford (1863–1947) once admitted that he could account for every dollar he earned except first million.

In pioneer countries capitalism (England, Holland, USA, etc.), the initial period lasted many decades (mainly in the 16th–19th centuries), until, finally, the bulk of the property found its owners and production was established, until the people themselves got tired of " lawlessness,” did not calm down and did not develop legislative rules for civilized life.

In Russia This period, through the efforts of the communists, was divided into two harsh “series”. The first began in the middle of the 19th century (especially violently after the abolition of serfdom in 1861). Here, too, the economy was invaded, as Dostoevsky writes, by “maleficent aliens, crazy with their own power,” who shouted in a wild voice to all of Russia: “Get out of the way, I’m coming!”

At the same time, the writer noted with alarm that things had become worse throughout society. “Something is floating in the air full of materialism and skepticism... like some kind of intoxication... the itch of debauchery... the admiration of the people for money, for the power of the golden bag... The adoration of free gain, pleasure without labor has begun; deception, every crime is committed in cold blood; they kill in order to take even a ruble out of their pocket" (15-13:34,35).

Thus, the negative effect of increasing “depravity” in society during the transition to capitalist freedom is a ubiquitous phenomenon. Self-centered and “impudently self-satisfied” businessmen (Dostoevsky) are usually not inclined to philosophical thoughts and do not immediately realize that more rational, safe and productive act not by deception and violence, but on the principles of civilized partnership, mutual benefit and, therefore, within the framework of the law.

“He who obeys the law is wise,” says the Bible. “If you disobey the law, you are with the evil,” and they are insignificant and will certainly be punished (6 Pr 28:7,4; 6:14,15). The second “series” of Russia’s transition to the market at the turn of the 20th–21st centuries clearly confirms this. Predatory capitalists destroy each other instead of fair competition. So God, in the words of Luther, “beats one villain with another” (10-366).

The remaining three types of capitalism are distinguished depending on in whose hands the main levers of economic and political power are concentrated and what form of this power in society is - bureaucracy, oligarchy or democracy (return to Fig. 1.11).

So, bureaucratic capitalism (or state capitalism) assumes that the economy and other spheres of public life are controlled by the state, i.e. first of all him bureaucratic apparatus a large tribe of officials. Hence, excessive interference of government agencies in the activities of citizens is inevitable (strict control, all kinds of checks and registrations, the need to obtain permits for everything, etc.), bureaucratic arbitrariness, corruption, collusion of bureaucrats with criminals, large and/or illegal businesses,

Rice. 1.11.

the flourishing of the “shadow economy” and the high criminalization of society, the low standard of living of the majority of the population against the backdrop of the super-wealth of corrupt officials and business leaders.

In particular, shadow economy - is an economic sector covering such types illegal activities like (1) clandestine production associated with violation of technological, labor protection, environmental and other requirements (for example, “black employment” - hiring an employee without registration on the staff, and therefore without pension contributions, without possible claims, etc.); (2) hidden entrepreneurship (or “self-employment”, without state registration), aimed at evading taxes and “interfering” rules; (3) activities related to prohibited production, drug trafficking, corruption, etc. According to various estimates, the share of such a “malignant” economy in Russia in the late 1990s reached 40-50% of GDP.

A somewhat similar picture is given by oligarchic capitalism. The economy and power here are in the hands of a narrow group of so-called " oligarchs " - the largest bankers, stock speculators, industrial, trading, newspaper and television magnates, etc. At the same time, the top leaders of the state apparatus, political parties, and the media (mass media) can be bought by the oligarchs and work for them. From the criminalized tops, crime circles disagrees in society, for biblical wisdom says correctly: “If vicious people are in power, then sin will be everywhere” (6 Pr 29:16) As for the standard of living, the majority of the population has a low one, while the oligarchs and. those who serve them “fatten” and live happily ever after.

In contrast to this democratic capitalism (it is also called civilized, or popular, capitalism) is possible only in conditions mature and genuine democracy, when the people themselves elect and control power in society and when individual rights and freedoms are guaranteed. Works effectively here diverse, social market economy (free competitive market + social guarantees for all citizens), there is widespread entrepreneurship, a huge number of medium and small businesses operate.

At the same time, there are few poor and super-rich in the country, life is regulated by well-functioning and respected laws, and the state protects owners from bandits and extortion by bureaucrats.

The largest share (60–80%) in such a democratic society is occupied by prosperous middle class - its main intellectual and creative force (hence the term “two-thirds society”). It covers representatives of a wide variety of professions: scientists, writers, artists, priests, teachers, doctors, lawyers, medium and small entrepreneurs, highly skilled workers, etc.

Typically these are people with good education, secure jobs, relatively high incomes and a modern lifestyle. They are professional, work hard, have property (land, houses, cars, securities), which means economically and politically independent. Their life credo: a person’s well-being is determined by his personal efforts - hard work, education, energy, entrepreneurship. It is not for nothing that a representative of the middle class in the West is often called in English self-made man [self-made man] is a self-made man who has succeeded on his own.

Of course, real life is “more cunning” and “rougher” than any smooth schemes. Everything in it can be in a complex interweaving. So, in Russia at the turn of the 20th–21st centuries, elements of initial, bureaucratic, and oligarchic “capitalism” were intricately woven together. People's capitalism, it seems, is still a long way off. Hence the social tension. When there is a lot of poverty and lawlessness in a society, Aristotle noted, it “inevitably becomes overcrowded with hostile people” (29-2,410).

However, what determines this or that specific appearance of society? A number of researchers [in particular, American economists and sociologists Thorstay and Veblen (1857–1929) and John Kenneth Galbraith (born in 1908)1 believe that, first of all, its most important institutions, or institutions. Hence the name of the theoretical direction founded by Vsblen - institutionalism.

Social institutions in general (from lat. institute - establishment, institution) are certain historically established institutions in society (traditions, norms, rules, organizational forms) that regulate the common life of people. For example, love, marriage, family, motherhood ( family institutions); business, market, money, bank, exchange ( economic institutions), state, army, court, parties ( political institutions); science, education, religion, moral standards ( spiritual institutions).

It is social institutions that “create and educate peoples” (Chaadaev), therefore, from their forms and content, from their rooting, legislative and organizational design in a given country ( institutionalization), The progress of society largely depends on the timely replacement of rapidly aging institutions with new ones. The more streamlined and perfect the social institutions, the higher their humane, moral, democratic and legal level, the less conflict and the more successful the society is in its development.

For economy institutions such as family, hard work, property, household, law, taxes, goods, money, market, corporations, trade unions, etc. are of paramount importance, and most importantly, as we will see below, state.

  • Industrial (from Latin industria - diligence, activity) - industrial (industry - the same as industry).
  • Materialism (from the Latin materialis - material) - (1) in philosophy - a worldview that takes matter, objective reality (and not its subjective reflection in human consciousness) as the basis of everything that exists; (2) *narrowly practical attitude to reality, excessive pragmatism.
  • Skepticism (from the Greek skeptikos - considering, exploring) - (1) and philosophy - a position of doubt about the possibility of knowing reality; (2) a critical, distrustful attitude towards something.
  • Civilized (from Latin civilis – civil) – (1) located at the level of a given civilization; (2) legal, cultural, enlightened, humane.
  • Partnership (from English, partner, French partenaire - partner, associate) - cooperation between people in any activity based on mutual understanding and trust, respect for each other's interests and mutual concessions, responsibility and obligation to comply with contractual terms.
  • Bureaucracy (from French bureau - bureau, office + Greek kratos - power, domination; literally: domination of the office) - (1) a form of power with the dominance of officials in society; (2) government officials themselves, especially senior management. Bureaucracy is bureaucracy, red tape, disregard for the essence of the matter and its replacement with formalities (certificates, reports, meetings). Bureaucrat – (1) a representative of the bureaucracy; (2) one who is prone to bureaucracy, to “playing with bureaucratic copying of papers”, “cluttering” (Lenin).
  • Corruption (from Latin corruptio - damage, bribery) - bribery; corruption of officials; bribery, embezzlement and other abuses of official position to obtain unjustified advantages for oneself. Criminalization (from Latin criminalis - criminal) - (1) increased crime in society; (2) the penetration of criminal (criminal) elements somewhere, the subordination of someone or something to the influence of the criminal world.
  • Tycoon (from Latin magnatus - rich, noble person) is a representative of big business, an influential person (in economics, politics, media, etc.).
  • Credo (from Lag. credo - I believe) views, beliefs, foundations of myron views.
  • Corporation (from Latin corporatio – association) – (1) joint-stock company; (2) an association of individuals, organizations or firms based on the commonality of their professional or class interests (for example, a corporation of bankers).


Capitalist system- social and state system that replaced feudalism. The capitalist system is based on private capitalist ownership of the means of production, on the exploitation of wage workers, deprived of the means of production and means of subsistence and, as a result, forced to constantly sell their labor power to the capitalists. The driving force of capitalist production, its main incentive is to make profit by appropriating the surplus value produced by workers.

The main contradiction of developed capitalism is the contradiction between the social nature of production and the private capitalist form of appropriation. The capitalist economy is based on the anarchy of production and is subject to spontaneous laws of development. Hence the inevitability of the emergence of periodic economic crises under capitalism, crises of overproduction, when more goods are produced than the market can absorb, limited by the effective demand of workers, whose standard of living is continuously declining under the capitalist system. The economy of capitalist countries develops cyclically, that is, growth of production due to the antagonistic contradictions of capitalism is replaced by decline, a sharp drop in production, and crisis.

During a crisis, which is the main phase of the capitalist cycle, there is a massive destruction of the productive forces of society, unemployment increases sharply, the impoverishment of the working class and all workers intensifies, and all the contradictions of the capitalist system intensify. With the development of capitalism, the oppression of capital increases, the absolute and relative impoverishment of the working class and working people increases. The more social wealth is concentrated in the hands of a small handful of capitalists, the more the proletarian portion of the masses grows, the more unemployment increases and the working class becomes impoverished. “This is the absolute, universal law of capitalist accumulation.” The most acute class struggle between the bourgeoisie and the proletariat is the main feature characterizing capitalist society.

At the end of the 19th century. capitalism has entered the highest, final stage - the stage of imperialism, which is characterized by the dominance of a handful of monopolists and monopolistic associations in the economy and politics of capitalist states. Due to the uneven political and economic development of capitalist countries in the era of imperialism, the foundations of the capitalist system are increasingly shaken, inevitable conflicts and wars arise between capitalist countries; The struggle of the working class and all working people under its leadership against the capitalist class is reaching extreme severity. The imperialist stage of capitalism is the eve of the socialist revolution. Since the First World War, the capitalist system has entered a state of general crisis, which is based on the ever-increasing disintegration of the world economic system of capitalism. The Great October Socialist Revolution, which marked the beginning of the collapse of the capitalist system, opened a new era in the development of human society. Capitalism has ceased to be the only and all-encompassing system of the world economy.

The world economy has split into two diametrically opposed economic systems: socialist and capitalist. A characteristic feature of the general crisis of capitalism is the extreme aggravation of all the contradictions of capitalist society. The contradictions between the imperialist powers and the colonies and dependent countries, which have taken the path of a national liberation movement that is undermining the foundations of imperialism, have intensified. The decay of capitalism has intensified. Capitalism in the era of its general crisis is characterized by chronic underutilization of the production apparatus of enterprises, the presence of a million-strong army of unemployed people, who have turned from reserve to permanent army of unemployed. Economic crises have become even deeper and more destructive, affecting all sectors of the capitalist economy in bourgeois countries.

The phases of crises in the capitalist cycle are becoming longer and longer, and the periods of temporary recovery are becoming shorter and do not lead to a general rise and prosperity of the economy.

During the Second World War, the second stage of the general crisis of capitalism unfolded. The most important economic result of the Second World War was the collapse of a single all-encompassing world market and the formation of two sides of domination by the largest monopolies throughout the world.
The socialist revolution does not replace the capitalist system with a higher social system - socialism, which is established in a fierce class struggle against capitalism. The dictatorship of parallel markets - capitalist and socialist - opposing each other, which determined the further deepening of the general crisis of the world capitalist system.

As a result of the Second World War and the victory of the Soviet Union in the struggle against Nazi Germany and imperialist Japan, a number of countries in Europe and Asia broke away from the capitalist world and established a system of people's democracy. The world-historical victory of the Chinese people dealt a new crushing blow to imperialism. People's democracies have embarked on the path of socialist construction. The world is divided into two camps: the camp of capitalism and imperialist reaction, led by the United States, seeking to start a new world war and establish its world domination, and the camp of growing and strengthening socialism and democracy, led by the USSR, leading the struggle for peace, against the warmongers. In order to preserve the thoroughly rotten capitalist system, the reactionary bourgeoisie resorts to the last, extreme means - the fascisation of states, the establishment of a fascist dictatorship in bourgeois countries.

Monopoly associations use the bourgeois state apparatus subordinate to them to further enslave the working people, destroy political freedoms and democracy, strangle the revolutionary and national liberation movement of the broad masses of the working people, and unleash wars of conquest. The bourgeois state is an obedient instrument of monopoly capital in its struggle to obtain maximum profits and the established Philosophical Dictionary of the proletariat organizes a new, socialist mode of production and forever puts an end to the exploitation of man by man, destroys the system of slavery and oppression.

At the end of the 15th and beginning of the 16th centuries, the life of Western Europe was marked by such tangible changes - the growth of production, trade, the flourishing of culture and knowledge of the world around man, that some historians of that time began to talk about the beginning of a New era of world history.

Understanding the novelty of life and exploring the causes of this phenomenon, they soon began to divide it into ancient, middle and modern. This periodization underlies world history.

Let's look at the beginning of the development of capitalism and its features.

The Age of Capitalism

New history is the history of the emergence, development and success of a new type of production and social relations - capitalism (Latin capitalis - main), which replaced feudalism with its violence and coercion.

The 16th to 18th centuries saw the rapid growth of new forms of production and trade. Everything indicated that elements of capitalist relations were rapidly developing within feudalism, and feudalism itself was increasingly becoming an obstacle to the economic and social development of society.

From feudalism to capitalism

The transition from feudalism to capitalism lasted for many decades, but the beginning of the crisis of feudalism clearly manifested itself precisely at the beginning of the 16th century. The feudal-monarchical system with its class privileges and complete disregard for the human person hindered the development of society.

Capitalism is a progress compared to feudalism. Capitalism is a system based on private (personal) property and the use of hired labor.

The main figures of society increasingly became the capitalist (bourgeois entrepreneur) and the wage worker (a free man selling his strength).

With their labor they ensured economic growth in both industrial and agricultural production. They did not allow society to find itself in the dead end of stagnation, where feudalism was leading it.

A similar process simultaneously occurred in agricultural production. The layer of nobility that began to orient its farms towards the market became bourgeois.

Wealthy peasant farmers also became bourgeois, turning into commodity producers (agricultural products for sale on the market).

The process of forming the bourgeois intelligentsia (Latin iritelligens - understanding, reasonable) began. Scientists, lawyers, masters of the new art, writers, teachers, doctors, etc. were especially dangerous for feudalism.

From them the ideas of humanism began to spread. They began to speak more and more loudly in their activities about the human right to live and work in conditions worthy of him.

What is the bourgeoisie

The term “bourgeoisie” is of French origin: this is how the inhabitants of the city (burg) were called. Over time, the word “bourgeoisie” began to mean not just city residents (burghers), but those people who, having saved money and hired workers, began to organize the production of any goods (things for sale).

Therefore, in the history of the development of capitalism, its early stage is called the period of “primitive accumulation”, and the production created on its basis began to be called “commodity”, working for the market (market economy).

Capitalism compared to feudalism is, first of all, a much higher level of production. This was achieved on the basis of a new organization of the process of manufacturing goods.

Having accumulated money and used it to make a profit, the bourgeois entrepreneur became a capitalist. Money only becomes “capital” when it generates income; money hidden “under the mattress” is not capital.

A new form of organization of production found its expression in manufacture. The thing (product) here is still created by the manual labor of workers. But the production process is already divided into separate operations (division of labor).

One worker performs one job (cuts sheets of iron into pieces of a certain size). At the same time, another worker gives them a certain shape, a third simultaneously makes blanks from wood, and a fourth processes them. All this goes to the fifth worker, who attaches the iron part to the wooden one, and the result is, for example, a shovel.

Each worker performed only one operation, and in general this made it possible to sharply increase labor productivity (the amount of products created per unit of time, for example, in 1 hour). Many more goods began to enter the market, and the law of competition began to operate.

Conditions for the development of capitalism

In order to be successful in the fight against his competitors, the capitalist-manufacturer is vitally interested in reducing the cost (the labor time required to produce a product, expressed in money) of manufactured products and improving their quality.

This gives him increased profits. Therefore, the owner of the production strives to improve the technical level of the equipment, its efficiency, and use the latest machines.

Those enterprises where all this was successfully carried out prospered, and the profits of their owners grew. The owners of ineffective enterprises went bankrupt. There was a “natural selection” among capitalist entrepreneurs.

Industrial civilization

The development of capitalism contributed to technical progress and growth, which entailed a sharp acceleration in the development of industry.

This was the main sign of the first steps of a new civilization, which historians later called “industrial” -. It replaced the agrarian-craft civilization of the Middle Ages.

The beginning of the process of the collapse of feudalism was accompanied by the ruin of a mass of small producers - peasants and artisans. From them an army of hired workers began to form.

Having gone through a very difficult and no less difficult path, this new social stratum gradually merged into capitalistically organized industries and agriculture.

And at the beginning of modern times, many bankrupt small owners became workers in dispersed (distribution of work from house to house) or centralized (work under one roof) manufactories.

In the 16th-18th centuries. Important changes took place in trade and finance. In the most developed countries of Europe (England, etc.), trade contributed to the disintegration of feudal relations.

It became a source of “primitive accumulation”, that is, a source of enrichment for a new layer of society - the bourgeoisie. A merchant (merchant) often turned into a capitalist-entrepreneur who founded a manufactory.


Cartoon "Capitalism"

The main phenomenon of intra-European trade was the beginning of the formation and development of single national markets, primarily in England and. This was facilitated by the policy of mercantilism (Italian mercante - to trade) - the creation by the state of favorable conditions for its trade.

As a result of the Great Geographical Discoveries, new directions of foreign trade appeared: to America,

The beginning of modern times and the development of capitalism was marked by the emergence of the first banks. These were special financial organizations that provided intermediation in payments and credit. The first banks appeared in the 15th century, first in Italy and then in Germany.

The development of capitalism is an inevitable phase in the development of modern civilization. However, the fruits of capitalism are not always as good as they sound in theory.

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Capitalism is one of the historical social systems. Characterized by an economic system based on the use of hired labor.

General concept of capitalism

There are several scientific definitions of the concept of “capitalism”. But all of them, differing in particular and secondary provisions, have common ground, with the help of which capitalism can be distinguished from other socio-economic formations - feudalism, communism, etc.

  1. The basis of the capitalist system is the provisions on freedom of enterprise and the inviolability of private property.
  2. The owners of the main means of production and the raw material base (factories, factories, mines, mines) are a special class of private owners - capitalists.
  3. The main producers of goods under capitalism are hired workers who perform some work ordered by the employer (capitalist).
  4. Most of the profits from the sale of manufactured goods are appropriated by capitalists (owners of the means of production and raw materials), while the actual producers - hired workers - are paid only wages determined by agreement with the capitalist employer.

Please note that the above definitions are just generalized signs. In fact, capitalism is a rather abstract concept, obtained through theoretical generalization of a wide variety of features.

Any attempts by economists to distinguish “pure” capitalism are always fail, since no state in the world provides entrepreneurs with complete freedom of trade and production, limiting their activities by various laws and regulations. In the same way, the provision on the inviolability of private property can be violated by a decision of state authorities - a court order, in accordance with certain provisions of the law, during a state of emergency and martial law.

The economic essence of the “work” of capitalism

Free enterprise, or free market relations, involves a minimum of government intervention. The authorities under capitalism are given the role of guarantor of the inviolability of market freedoms and private property. The driving mechanism of the capitalist market is the balance of supply and demand.

In a nutshell, this is expressed by the thesis “Demand creates supply.” The main goal for a capitalist is to make a profit by selling goods produced in his factories and factories.

However, if there is no demand for a given group of goods at a given moment, then he will not be able to sell it. Consequently, without selling the goods, the capitalist will not only be able to make a profit, but also to return the money spent on the production of this product. This state of affairs threatens the entrepreneur big losses, and in the future complete ruin - bankruptcy.

In the opposite situation, when the demand for the product being produced is very high, the manufacturer can sell it at inflated prices, and buyers will still be forced to buy it. In this case, the capitalist will receive the so-called “excess profit” - income from sales that is many times greater than the initial costs of producing the goods.

Another one is based on this market law: the higher the demand, the higher the price. This law stems from the natural desire of the capitalist to get as much profit as possible at a minimum of costs.

Pros and cons of the capitalist system

This same desire for enrichment gives rise to a number of social problems, which in the modern world are solved exclusively with the intervention of the state and trade unions. The founders of communism called such excesses "grimaces of capitalism". First of all, this is the desire to optimize costs for hired workers:

  • The desire to reduce wages.
  • Save on various social benefits.
  • Get maximum output from hired workers.
  • Optimize costs when demand for goods decreases, through mass layoffs and lockouts (temporary closure of an enterprise).

In the modern world, such methods of obtaining additional profit are punishable by law in most countries. In addition, capitalists, in order to obtain higher profits, can enter into corporate conspiracies, artificially inflating prices for certain groups of goods. Such methods of enrichment are also prohibited by antimonopoly legislation.

Despite these shortcomings, according to many economists and experts, the capitalist system today is most effective of all socio-economic formations that have ever existed. This is due to the high flexibility of capitalist production, its ability to instantly respond to changes in demand conditions, timely satisfying market needs.

The capitalist is personally interested in selling as much goods as possible at the highest price. Therefore, it is profitable for him to produce exactly the product that the buyer urgently needs at a given moment in time. The well-being of the capitalist himself depends on the speed of response to changes in demand - producers who are slower and unable to quickly adapt simply cannot withstand the competition and go bankrupt.

Thus, in conditions healthy competition natural selection takes place. The most enterprising and economically educated manufacturers remain on the market, capable of establishing efficient production and competently organizing the process of manufacturing and selling goods. And this is best reflected in the general state of the state’s economy.

The origin and development of capitalism

It is quite difficult to name the exact time of the emergence of capitalism due to the vagueness of the concept itself, and due to the difficulty of determining at what time in a particular country wage production became the main one. Undoubtedly, one thing is known - the birth of capitalism took place in Western Europe, approximately in the late Middle Ages. The first signs of capitalism can be observed here back in the 13th-14th centuries: the first commodity exchanges appeared in Italy, Flanders, and Holland, and the banking system was formed.

Then it appears capitalist class– owners of capital who are not members of the aristocracy. They make their fortunes from manufacturing, trading and banking. Even European monarchs often had to turn to the services of bankers-usurers. Further, in the XV-XVII there is a rapid growth in commodity production, profits from trade and investment, due to the Great Geographical Discoveries - the discovery of America and the sea route to China and India.

During these years, the largest enterprises of their time were founded, absolutely capitalist in essence - the Dutch and English East India and West India Companies, whose goal was to develop new colonies and establish trade relations.

The two industrial revolutions that took place one after another finally broke the back of feudalism, making capital the main driving force of the economy. As the author of the monumental work “Capital” K. Marx put it, “the steam engine gave birth to capitalism.”

With the beginning of the mass introduction of machine tools and other highly productive means, huge factories and factories grow, industrial cities and entire regions are created. By the end of the 19th century. The formation of the capitalist system with all its main attributes in most European countries was completed.

Today we are following the capitalist path of development most countries of the world. Even those states that have officially declared socialism or communism as the doctrine of their development cannot completely move away from capitalist foundations. As an example, we can consider countries such as China, Vietnam, Laos. Despite the fact that communist parties are officially in power there, the basis of the economy today is made up of enterprises that are privately owned and based on hired labor.

Capitalism is an economic system based on private ownership of the means of production. The main purpose of this system is to make a profit and accumulate wealth.

In a capitalist system, capitalists own the means of production and distribution. They hire labor, that is, the proletariat. The proletariat receives a salary for its work.

The means of production can be, for example, machines, land, plants and factories. They are needed to make a profit. This profit then forms the wages of workers, production costs and the direct net income of capitalists.

How does the capitalist system work?

There are two classes in capitalism - capitalists And proletariat(workers).

Capitalists are the owners of the means of production. They hire workers to profit from production and accumulate wealth.

The proletariat has only its own labor force. He sells this power to the capitalists and receives a salary.

Products that are produced under the capitalist system are sold in markets. The price for these products is set taking into account the economic law of supply and demand.

Capitalism presupposes free market. That is, one in which the state does not interfere.

In this system, one of the main functions of the state is the guarantee of private property. It is its presence that allows capitalists to use their lands, equipment, and machines to make a profit.

The capitalist system aims to maximize profits and accumulate wealth. Therefore, capitalists try to raise prices and reduce their production costs.

Stages of capitalism

Capitalism originated in the 15th century, when feudalism, the system of building society in the Middle Ages in Western Europe, came to naught.

Since then, capitalism has constantly changed. The study of these changes made it possible to distinguish 4 stages of capitalism.

Now capitalism is in its third stage. Here is a brief description of each of them:

Commercial capitalism (15th–18th centuries)

Also called the pre-capitalist stage. It is characterized by mercantilism, that is, an economic course aimed at selling products.

The state controlled the economy. Countries sought to mine and hoard precious metals.

Industrial capitalism (18th–19th centuries)

This stage began with the Industrial Revolution in England. As a result, factories began to produce instead of manufactories. That is, manual labor was replaced by machines.

And the economy received greater freedom, with little government intervention.

Financial capitalism (from the 20th century)

Capitalism entered this stage after World War II. Trade and industry are controlled by large corporations and financial institutions.

Information capitalism

This stage appeared in response to the development of information technology.

Technology has facilitated the instant exchange of information between partners on different sides of the Earth. And this affected not only social and cultural relations, but also economic ones.

The term information capitalism was coined by Manuel Castells. He mentioned it in his book "The Network Society" (1996). And although the author mentioned it in a different context, since then this is what the fourth stage of capitalism has been called.

There is an opinion that information capitalism is not one of the stages, but only a set of characteristics of today's capitalism.

Judging by all the main parameters, the capitalist system is precisely in its third - financial - stage.

What's good and bad about capitalism?

Capitalism is a method of production with its pros and cons.

Pros of the system are that it has contributed to the development of technology, increased production efficiency and a wider choice of products and services.

A minus- social inequality between workers and capitalists, which is generated by the constant pursuit of wealth. This inequality can be seen in capitalist countries around the world.

To others minus is environmental pollution. Capitalism involves large volumes of consumption. As a result, production increases, which leads to air and water pollution and global warming.

Capitalism and socialism

Socialism is also an economic system and a method of production.

Unlike capitalism, in which there is private ownership of the means of production, socialism presupposes collective property. And the means of production in a socialist system are controlled by the state.

Socialism advocates an egalitarian society without class divisions between workers and capitalists.

Egalitarianism is a theory according to which it is possible to create equal opportunities for everyone in society: in politics, economics, and the legal sphere.

Under a socialist system, human needs are satisfied. And the state provides basic services, such as education and medicine, to citizens free of charge.

Under capitalism, the market determines what to produce, in what quantity, how to market it, and in which sectors of the economy to invest. The state does not interfere in these matters.

While under socialism the state develops plans for investment, production of goods and provision of services.

Capitalism and globalization

Globalization is the result of close cooperation between countries and market participants.

Thanks to information technology, globalization has connected markets and created interdependence among countries.

In a capitalist system, globalization has led to the exchange of knowledge, information, cultural characteristics and the development of technology. But on the other hand, the inequality of people around the world has become more pronounced.