Capitalism

It is the economic system that emphasizes the right to private property and in which the means of
production are privately owned and operated. In a Capitalist system, the investment of capital and the
production and distribution of various commodities, goods and services are accomplished in an open
and free market.
Prices are just naturally and automatically determined in the free market, and they float in accordance
with the natural laws of supply and demand.
Those who invest capital at their own risk expect to make profit or loss on the investment. Wages or
salary is paid for labor; wages or salary and other on-going expenses reduce profit margins.

Capitalism

A type of economic organisation which is defined by:

Private ownership and control of the economic means of production.

The gearing of economic activity towards making a profit.
A market framework which serves to regulate economic activity.
The appropriation of profit (surplus value) by the owners of the means of production.
The provision of labour by workers.

Capitalism is becoming the dominant economic system in the world, and historically, its increasing
dominance arose from industrialisation. In common usage, as well as the means of production being
mostly privately owned, capitalism also refers to the fact that market forces determine investments,
production, distribution, prices and income. This is known as a free market. Private ownership of the
means of production is in contrast with socialism and communism, where the means of production is
owned and run by the state or a collective. All of the economies in the western world are regarded as
being capitalist or as mixed economies based on capitalist principles. Some economists see the private
ownership of capital as the core of capitalism, whilst others view the free market as a means for the
movement and accumulation of capital.

The most famous critic of capitalism was Karl Marx who believed that private ownership of production
was beneficial and enriching for capitalists (the bourgeoisie) at the expense and exploitation of the
workers (the proletariat), thus a source of social problems. Supporters of capitalism counter this
argument by proposing that private ownership of the means of production gives incentive to owners to
increase productivity, thus enriching workers as well. They also cite examples such as China and other
parts of the developing world as having halved the percentage of people living below $1 per day in the
past twenty years. Nevertheless, critics cite the growing power of transnational organisations which
they view as a worrying trend since heads of such corporations are not answerable to individuals living
within nation states in the same way as are the governments of these states.

Often, TNCs possess more economic power than smaller nation states. In addition, critics argue that the
economic growth of the TNCs has often been achieved at the expense of the environment. Many
environmental activists question whether the world can sustain the growth associated with the
establishment of capitalism on a global scale. In addition, workers within Third World countries are
often exploited and forced to work in appalling conditions.

Global Capitalism is also associated with:

A shift from Fordism (strict division of labour with workers performing low-skill repetitive tasks to
produce standardised goods for undifferentiated markets) to Post-Fordism (the organisation of
production in a flexible manner in order that production can adapt to changing consumer demands).
Ideologies of human rights and social justice.
The economic rights of individual citizens and protection from the arbitrary powers of the state and
also the state's obligation to protect property rights and guarantee the enforcement of commercial
contracts.
Rationality especially within the work of Max Weber who saw capitalism as embodying efficiency.

'The capitalistic economy of the present day is an immense cosmos into which the individual is born,
and which presents itself to him, at least as an individual, as an unalterable order of things in which he
must live. It forces the individual, in so far as he is involved in the system of market relationships, to
conform to capitalistic rules of action. The manufacturer who, in the long run, acts counter to these
norms, will just as inevitably be eliminated from the economic scene as the worker who cannot or will
not adapt himself to them will be thrown into the streets without a job'.

(Weber, Max, The Protestant Ethic and the Spirit of Capitalism, trans. T. Parsons, London, Allen
&Unwin, 1930:54-55)

Ch ngha t bn
Mt loi t chc kinh t c xc nh bi:
S hu t nhn v kim sot ca cc phng tin kinh t ca sn xut.
Cc chun ca hot ng kinh t theo hng to ra li nhun.
Mt khun kh th trng phc v iu chnh hot ng kinh t.
Vic trch li nhun (gi tr thng d) ca ch s hu phng tin sn xut.
Vic cung cp lao ng ngi lao ng.
L ch ngha t bn tr thnh h thng thng tr kinh t trn th gii, v lch s, s thng tr ca
n ngy cng tng pht sinh t cng nghip. Trong s dng thng thng, cng nh cc phng
tin sn xut l ch yu thuc s hu t nhn, ch ngha t bn cng cp n thc t l lc
lng th trng quyt nh u t, sn xut, phn phi, gi c v thu nhp. iu ny c bit
n nh mt th trng t do. S hu t nhn ca cc phng tin sn xut l tri ngc vi ch
ngha x hi v ch ngha cng sn, ni m cc phng tin sn xut c s hu v iu hnh
bi nh nc hay mt tp th. Tt c cc nn kinh t trong th gii phng Ty c coi l t
bn hay nh cc nn kinh t hn hp da trn cc nguyn tc t bn ch ngha. Mt s nh kinh
t s hu t nhn vn l ct li ca ch ngha t bn, trong khi nhng ngi khc xem th trng
t do nh mt phng tin cho s di chuyn v tch t vn.
Cc nh ph bnh ni ting nht ca ch ngha t bn c Karl Marx tin rng quyn s hu
t nhn sn xut mang li li ch v phong ph cho cc nh u t (giai cp t sn) ti cc chi
ph v khai thc ca cng nhn (giai cp v sn), do mt ngun ca cc vn x hi. ng h
ca ch ngha t bn chng li lp lun ny bng cch xut rng quyn s hu ring ca cc
phng tin sn xut cho u i cho ch s hu tng nng sut, do lm phong ph thm
ngi lao ng cng. H cng trch dn v d nh Trung Quc v cc b phn khc ca th gii
ang pht trin nh gim mt na t l ngi sng di 1 mi ngy trong hai mi nm
qua. Tuy nhin, cc nh ph bnh trch dn sc mnh ngy cng tng ca cc t chc xuyn quc
gia m h xem nh l mt xu hng ng lo ngi k t khi ngi ng u ca cc cng ty ny
khng chu cho cc c nhn sng trong cc quc gia quc gia trong cng mt cch nh l cc
chnh ph cc nc ny.
Thng thng, cc cng ty a quc gia c nhiu quyn lc hn kinh t hn so vi cc quc gia dn tc nh hn. Ngoi ra, cc nh ph bnh lp lun rng s tng trng kinh t ca cc cng ty
a quc gia thng c thc hin ti cc chi ph mi trng. Nhiu nh hot ng mi trng
t cu hi liu th gii c th duy tr s tng trng lin quan vi s thnh lp ca ch ngha t
bn trn quy m ton cu. Ngoi ra, cng nhn trong cc nc th gii th ba thng c khai
thc v buc phi lm vic trong iu kin kinh khng.
Ch ngha t bn ton cu cng c lin quan:
Mt s thay i t Fordism (phn cng lao ng cht ch vi cc nhn vin thc hin nhim

v lp i lp li k nng thp sn xut hng tiu chun ha cho th trng khng khc bit)
Fordism-Post (t chc sn xut mt cch linh hot sn xut c th thch ng vi thay i nhu
cu tiu dng).
T tng nhn quyn v cng bng x hi.
Cc quyn kinh t ca c nhn cng dn v bo v quyn lc c on ca nh nc v ngha
v ca nh nc bo v quyn s hu v m bo vic thc hin cc hp ng thng mi.
Tnh hp l - c bit l trong cng vic ca Max Weber, ngi thy ch ngha t bn nh
th hin hiu qu.
"Cc nn kinh t t bn ngy nay l mt v tr bao la vo m c nhn c sinh ra, v trong
trnh by vi anh ta, t nht l mt c nhn, nh l mt th t khng th thay i nhng th
trong ng phi sng. Lc lng cc c nhn, cho n nay khi ng tham gia trong h thng cc
mi quan h th trng, ph hp vi quy tc t bn ca hnh ng. Cc nh sn xut, trong thi
gian di, hnh vi truy cp cc nh mc, cng nh chc chn c loi b khi hin trng kinh
t nh cng nhn khng th hoc s khng thch ng vi mnh h s c nm vo cc ng
ph m khng c mt cng vic ".
(Weber, Max, o c Tin Lnh v Thnh Linh ca ch ngha t bn, xuyn T. Parsons.,
London, Allen & Unwin, 1930:54-55)
Features of Capitalist Economy:
The main features of a capitalist economy are as follows:
(a) Factors of production are owned by the individuals.
(b) Every individual has freedom to start business of his own choice.
(c) All economic activities are guided by the motive of profit.
(d) Individuals are the owners and acquire property and pass it on to next heir after death.
(e) Government has little role to play in the functioning of the economy. (/) Prices of goods and
services are determined by the market forces of demand and supply.

Capitalism

Capitalism - is the economic system based upon private property and the market in which, in
principle, individuals decide how, what and for whom to produce. Under capitalism, individuals
are encouraged to follow their own self-interest, while market forces of supply and demand are
relied upon to coordinate those individuals pursuits. Distribution of goods is to each individual
according to his or her ability, effort, and inherited property.

Reliance upon market forces doesn't mean that political, social and historical forces play no role
in coordinating economic decisions. These other forces do influence how the market works. For
example, for a market to exist, government must allocate and defend private property rights - the
control a private individual or firm has over an asset or a right. The concept of private ownership
must exist and must be accepted by individuals in society.
Markets work through a system of rewards and payments. If you do something you get paid for
doing that something; if you take something, you pay for that something. How much you get is
determined by how much you give. This relationship seems fair to most people. But there are
instances when it doesn't seem fair. Say someone is unable to work. Should that person get
nothing?
In capitalism individuals are encouraged to follow their self-interest. In capitalist economies,
individuals are free to do whatever they want as long as it's legal. The market is relied upon to
see that what people want to get, and want to do, is consistent with what's available. Price is the
mechanism through which peoples desires are coordinated and goods are rationed. If there is not
enough of something to go around, its price goes up; if more of something needs to get done, the
price given to individuals willing to do it goes up. If something isn't wanted or doesn't need to be
done, its price goes down. Under capitalism, fluctuations in prices play a central role in
coordinating individuals wants.
By almost all accounts, capitalism has been an extraordinary successful economic system.