The years 1870-1920 are known as a period called “capitalism takes command.” Capitalism is an economic system where trades and industries are controlled by private owners. Command economy is an economy in which production, investment, prices, and incomes are determined centrally by a government. Capitalism and command are two different economies. What makes them different is the amount in which the government is involved.
In the capitalist economy people are free to own property which is known as ‘capital’ and they get to choose what they want to do with their property and they also get to choose how to employ labor for their property. According to unit 3 there are two frontiers for this. The two frontiers are free labor and slave labor. Both types of labors are the same in that neither receives any type of payment. The key difference in the two is that in free labor the worker has liberty to leave the workplace if they please whenever they want. In slave labor the slave has no say in where or how they work.
In general people choose to buy as much capital as they can. In Unit 3 we learned about the market revolution. The market revolution is a big factor in why one might want to buy lots of capital. The market revolution is the process that took place in nineteenth-century America in which an economy dominated by small farms and workshops was transformed into an economy in which farmers and manufacturers produced items for cash. In unit 4 we learned that labor is a commodity. So people would not only buy capital but also investing their capitals for example, bank accounts, shares and real estate. In capitalism CCPMS needs to be regulated, Capitalist, private property, market system. One way capitalism was regulated was through labor unions, and the social security upheld minimum wage laws, as we can see from unit 4.
In a command economy people are less free to own property and are also commanded to perform jobs the government wants them to do....