A society is capitalist if most production is carried on by employees working with means of production (equipment and materials) belonging to their employer, producing commodities which belong to the employer. (Employees: those whose services are treated as commodities. 'Labour is a commodity like any other', 'an article of trade' - Edmund Burke, Thoughts on Scarcity, 1795.) Capitalism is an economic system in which the means of production are privately owned and operated for a private profit; decisions regarding supply, demand, price, distribution, and investments are made by private actors in the free market; profit is distributed to owners who invest in businesses, and wages are paid to workers employed by businesses and companies. This is what we mean by the system of Capitalism. Thinking about Capitalism, one directly is taken to the period of Marx and Engels where a distinction between Capitalist and Labour class was firstly and soundly made. Until then a capitalist continued to dominate the class hierarchy. Simple words suggest that a capitalist is a person in whose hands the entire power to production and the decision regarding the consumption vests. For ages capitalist class ruled the large part of the society. Even today, in several fields capitalists dominate other classes. Capitalism, as a deliberate economic system, developed incrementally from the 16th century in Europe, although proto-capitalist organizations existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages. Capitalism became dominant in the Western world following the demise of feudalism. Capitalism gradually spread throughout Europe, and in the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world. Today the capitalist system is the world's most dominant form of economic model. The term capitalist refers to an owner of capital rather than an economic system, but shows earlier recorded use than the term capitalism, dating back to the mid-seventeenth century. The Hollandische Mercurius uses it in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, six years before its first recorded English usage by Arthur Young in his work Travels in France (1792). David Ricardo, in his Principles of Political Economy and Taxation (1817), referred to "the capitalist" many times. Karl Marx and Friedrich Engels, the great scholars of 18th century have continuously used the term ‘Bourgeois’ while talking about capitalist class. They raised points concerning the exploitation of Proletariats by the Bourgeois and asked the proletariats to fight for their rights. The Communist manifesto given by these scholars shows the distinction they have made between the two classes and the domination of powerful capitalist class in the society.
Marx on Capitalism; How explain the possibility of Capitalism? Capital is money used to make money - by buying commodities which are then to be sold to get an increased amount of money. How can money be used in this way? One answer is: by buying cheap and selling dear as prices fluctuate. This may explain how this or that individual makes money for a while, but since every gain made this way is someone else's loss, if those who gain that way now have an even chance of losing later, then it cannot explain the existence of a definite class of people who regularly make money. The explanation for the existence of such a class (capitalists) is that a limited set of people are in a position to buy a commodity which regularly yields an increase when they sell. This commodity is the service of the worker, which may produce commodities which exceed that service in exchange value (and only when when it does will the worker's services be bought). The service of a worker is a commodity which has the special use of producing other commodities, which may have more exchange value than it...
Bibliography: and reference.
* Essays and articles of Anthony Giddens on Capitalism.
* Karl Kautsky and social science of classical Marxism, 2003 Pg. 93, 127.
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