a. What is capitalism?
b. Historical development of capitalism
c. Features of capitalism
d. Merits of capitalism
e. Demerits of capitalism
a. What is communism?
b. Historical background of communism
c. Principels of communism
d. Advantages of communism
e. Disadvantages of communism
3.Comparision of capitalism and communism
a. What is capitalism?
Capitalism is now quite commonly used to describe the social system in which we live. It is also often assumed that it has exited, if not forever then for most of the human history. In fact capitalism is relatively new social system. We defined it as an economic system in which the means of production and distribution are privately owned and development is proportionate to the accumulation and reinvestment of profit gained in a free market. It is the system which how exists in all countries of the world.
There is no consensus about the definition of capitalism among the economists, political economists, and historians the definition which I find from the business dictionary.com is that “economic system based (to a varying degree) on private ownership of the factors of production (capital, land, and labor) employed in generation of profits. It is synonymous with free market system”. According to Minsky capitalism is not just the market economy, but it is also a financial economy. Minsky states that there are two sets of prices, first is the prices of current output, and second consist of the prices of assets. Capitalism is different from many other economic ideas by the fact that capitalism gives individuals freedoms with minimal government interference.
Economists usually put emphasis on the degree that government does not have control over markets (laissez faire) and on property rights while most political economists emphasize private property, power relations, wage labor and class. There is a general that capitalism entomic growth. The extent, to which different markets are “free” as well as the rules determining what may and may not be private property, is a matter of politics and policy and many states have what are termed “mixed economies”.
b. Historical Development of capitalism
Capitalism is a difficult, problematic term; it applies to a diversity of phenomenon spread across disparate historical cultures with substantially variable world views. However, the term is an Enlightenment European term used to describe European practices; so the term “capitalism” means more than just a body of social practices; easily applied across geopolitical and historical distances, it is also a “ way of thinking does not necessarily apply to earlier European origins of capitalism or to capitalism as practiced in other cultures.
The earliest form of capitalism is “mercantilism” which originated in Rome, the early middle Ages. Mercantilism is the period between sixteenth and eighteenth centuries. We defined it as the distribution of Goods in order to realize a profit. Goods are bought at one site for a certain price and moved to another site and sold at a higher price. It is basically a system for profit.
Some scholars see mercantilism as the earliest stage of modern capitalism; others argue that modern capitalism did not emerge until later. For example Karl Polanyi, noted that Mercantilism, with its entire tendency toward commercialization, never attacked the safeguards which protected two basic elements of production labor and land from becoming the elements of commerce; thus mercantilist attitudes towards economic regulation were closer to feudalist attitudes “they disagree only on the methods of regulations”.
As I already write this that mercantilism originated from Rome. It expanded throughout the Europe with the expansion of Roman Empire, most of the European economy became controlled by local feudal powers,...