Wednesday, 10 September 2014

CAPITALISM:definition,history,benefit,weakness,and critic



What is capitalism system?
Class division
Capitalism is the social system which now exists in all countries of the world. Under this system, the means for producing and distributing goods (the land, factories, technology, transport system etc) are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of people must sell their ability to work in return for a wage or salary (who we refer to as the working class.

The working class are paid to produce goods and services which are then sold for a profit. The profit is gained by the capitalist class because they can make more money selling what we have produced than we cost to buy on the labour market. In this sense, the working class are exploited by the capitalist class. The capitalists live off the profits they obtain from exploiting the working class whilst reinvesting some of their profits for the further accumulation of wealth.
In capitalism, the motive for producing goods and services is to sell them for a profit, not to satisfy people's needs. The products of capitalist production have to find a buyer, of course, but this is only incidental to the main aim of making a profit, of ending up with more money than was originally invested. This is not a theory that we have thought up but a fact you can easily confirm for yourself by reading the financial press. Production is started not by what consumers are prepared to pay for to satisfy their needs but by what the capitalists calculate can be sold at a profit. Those goods may satisfy human needs but those needs will not be met if people do not have sufficient money.

The profit motive is not just the result of greed on behalf of individual capitalists. They do not have a choice about it. The need to make a profit is imposed on capitalists as a condition for not losing their investments and their position as capitalists. Competition with other capitalists forces them to reinvest as much of their profits as they can afford to keep their means and methods of production up to date.

History of capitalism
When Industry revolution in British after Jamess watt  creat steam engine capitalism start from here, The history of Capitalism can be traced back to early forms of merchant capitalism practiced in Western Europe during the Middle Ages. It began to develop into its modern form during the Early Modern period in the Protestant countries of North-Western Europe, especially the Netherlands and England. Traders in Amsterdam and London created the first chartered joint-stock companies driving up commerce and trade, and the first stock exchanges and banking and insurance institutions were established.
A.Early Capitalism (1500-1750). Capitalism in this phase are still referring to the basic needs are characterized by the presence of the clothing industry in the UK since the sixteenth century until the eighteenth century. And continued in the business of shipping, warehousing, raw materials, finished goods and other forms of property variations. And kemuadian turned into the expansion of production capacity, and talent capitalism which were later claimed banayk. In urban areas, the merchant capitalists sell their goods produced in one trip from one place to another. At first they were selling goods at merchants fellow companion, then evolved into public trading. While in rural areas it was still tend feudalistic. In this case Russell suggests that there are three factors that hinder capitalism in rural and other areas. Contraints it is:
a)      Existing land only used to grow crops, so production is very limited results. Russell proposes to transform the land into something more profitable (profitable). Or in another sense the ground of bias be traded like other goods.
b)      The farmers or farm laborers who are still tied to the economy of subsistence. Russell comments for this is that they are ready fatherly employed with a certain wage.
c)       Production yields obtained by farmers when it is used merely to fulfill kebutuhanpribadi. According to him, the production results of the farmers should be offered to the market and ready to be consumed by the public.
1.       Capitalism Classical (1750-1914). Capitalism in this phase is the shift of public fields for industry trade marked by the Industrial Revolution in England, where many large machines created very supportive of the industry. In this phase the famous figure called the "father of capitalism" with his very tekenal the Wealth Of Nations (1776) where one of the points of laissez faire doctrine with its invisible hand (the market mechanism) and some contemporary figures such as David Ricardo and John Stuart Mills , which is commonly known as neo-classical economic figures. In this phase of capitalism often gets spicy insults from Marx groups.
2.       Advanced Capitalism (1914 - present). Momentum is the main phase of the First World War, capitalism as an important event is characterized by at least three momentum. First, a shift in the dominance of capital from Europe to America. Secondly, raising awareness of the nations in Asia and Africa as the excesses of classical capitalism, the which then manifests awareness of it with resistance. Third, the Russian Bolshevik revolution were desirous devastated the fundamental institutions of capitalism in the form of individual ownership over the control of the means of production, social class structure, the form of government and the religious establishment. From there emerged a rival ideology is Communism

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.Much of the history of the past five hundred years is concerned with the development of capitalism in its various forms.

Benefit of capitalism
1. a lot of research in advancing technology and innovation with unlimited financial support
2.freedom for entrepreneurs and investors without being limited to support increased production of goods and services
4.development of technologies that support the production of food in large quantities, increasing health technology
5.inovation of market
1.Less healthy action in the competition. It is for their win in the competition.
2.Competition in the market may lead to monopoly.
3.The existence of strong competition between individuals led to the gap between the strong and the weak widened. Thus, equitable distribution of income difficult to achieve.

Critic for Capitalism system
1.The freelance market policy makes the poverty is more poor, the rich is more rich, their distance enlarges. And the capitalists can press the workers' rights, this makes the classes' discontent more radical. When the country is very poor, the country may be changed into communism government.
2. Under a capitalist system, the profit motive is far greater than welfare. If people are worried about what’s in their own pocket, they will avoid helping their fellow human beings because they’re concentrating on looking after themselves. People feel the need to put themselves first because they think no-one will be there to help them if they lose all their money.
3. While every individual has a single vote in a democracy, in a capitalist system, they have very little say in the actions of government. Greater influences on government than ideology or public opinion are the wealthy. Governments will listen to big business and banks because they fund their election campaigns. They will listen to big newspaper barons because they know that they can influence public opinion
4. Many of the wars fought in recent years have been over profit. In Iraq, the war was largely funded by oil barons, and it was private firms who handled most of the security after the initial invasion. In Libya, western forces intervened when the civil war caused oil supplies to be cut off. They only sided with the rebels because they thought they were the most likely to win. In Iran, military intervention is being threatened over the blocking of trading routes to transport oil.
5.propaganda, You cannot escape capitalism, it’s everywhere. On every billboard, on every TV program, you have someone telling you to buy something. When this is done by governments in dictatorships we call it propaganda, when companies do it, it’s called advertising. They’are both forms of brainwashing.

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