Difference between revisions of "Capitalism"
Jump to navigation
Jump to search
| Line 1: | Line 1: | ||
'''Capitalism''' refers to several schools of thought and models in regard to Economics. First emerging in the 18th century with roots stemming to John Lock and Adam Smith, capitalism is based around private ownership of industry, said privately owned industries are organized towards making as much [[Currency|money]] as possible. Economic development in a capitalist society is governed by market forces such as those of Supply and Demand. | '''Capitalism''' refers to several schools of thought and models in regard to Economics. First emerging in the 18th century with roots stemming to John Lock and Adam Smith, capitalism is based around private ownership of industry, said privately owned industries are organized towards making as much [[Currency|money]] as possible, thus driving them to expand the scope of their operations and develop new methods to make themselves more efficient and productive as well as causing them to invest in new technologies. Economic development in a capitalist society is governed by market forces such as those of Supply and Demand. | ||
== Flaws of Capitalism == | == Flaws of Capitalism == | ||
While capitalism was sucessful as a driving force behind the industrial revolution, their are numerous shortcommings of the system. | While capitalism was sucessful as a driving force behind the industrial revolution, their are numerous shortcommings of the system. | ||
*Wealthy Corperations can become powerful forces in their own right. | *Wealthy Corperations can become powerful forces in their own right due to the resources that they have at their command. | ||
*Private Industries are driven to obtain as much profit as possible. If obtaining a greater profit margin can be done by paying its employees bare subsistance rates, producing unsafe products or disposing of toxic wastes by simply dumping it into the ecosystem, many of them will do it. | *Private Industries are driven to obtain as much profit as possible. If obtaining a greater profit margin can be done by paying its employees bare subsistance rates, producing unsafe products or disposing of toxic wastes by simply dumping it into the ecosystem, many of them will do it. | ||
*These problems are magnified if a Corperation becomes a monopoly in a specific field and when they | *These problems are magnified if a Corperation becomes a monopoly in a specific field and when they achieve said status, they can hold on by crushing any upstart that might arise through market saturation and buying them out. This inevitably leads to stagnation. | ||
For these reasons, the affairs of private industry are generally regulated to prevent abuses of power. | For these reasons, the affairs of private industry are generally regulated to prevent abuses of power. | ||
{{Stub}} | {{Stub}} | ||
[[Category: Politics]] | [[Category: Politics]] | ||
Revision as of 12:20, 18 June 2012
Capitalism refers to several schools of thought and models in regard to Economics. First emerging in the 18th century with roots stemming to John Lock and Adam Smith, capitalism is based around private ownership of industry, said privately owned industries are organized towards making as much money as possible, thus driving them to expand the scope of their operations and develop new methods to make themselves more efficient and productive as well as causing them to invest in new technologies. Economic development in a capitalist society is governed by market forces such as those of Supply and Demand.
Flaws of Capitalism
While capitalism was sucessful as a driving force behind the industrial revolution, their are numerous shortcommings of the system.
- Wealthy Corperations can become powerful forces in their own right due to the resources that they have at their command.
- Private Industries are driven to obtain as much profit as possible. If obtaining a greater profit margin can be done by paying its employees bare subsistance rates, producing unsafe products or disposing of toxic wastes by simply dumping it into the ecosystem, many of them will do it.
- These problems are magnified if a Corperation becomes a monopoly in a specific field and when they achieve said status, they can hold on by crushing any upstart that might arise through market saturation and buying them out. This inevitably leads to stagnation.
For these reasons, the affairs of private industry are generally regulated to prevent abuses of power.
This article is a stub and needs to be completed. You can help by editing this article.