Thursday, January 13, 2011

What is capitalism?

Before starting to use the word capitalism I will try to define it first. According to Merriam-Webster's dictionary, capitalism is defined as:  "An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market
Now let's slice this definition into pieces and elaborate its fundamentel elements. It is an economic system by private or corporate ownership of capital goods meaning that possession of said goods play a key role in capitalism which reminds me of a quote of John Locke on the role of a government which will be important later on when I discuss the role of the government in capitalism. He said the following : "Government has no other end than the preservation of property."This property includes but is not limited to capital goods. Capitalism is also characterized by investments that are determined by private decision and by prices, production and the distribution of goods. Again, it is relevant to note the importance of the role of the government because this leads to the several questions e.g. which economical policy is more fruitful, the regulated market or the deregulated market and what are the social and global consequences that companies have in the distribution of they products and/or services. The last part of the definition speaks of the role of the free market in capitalism and its potential to provide economic growth and profits and its potential to enlarge poverty. 


I hope the first part of my blog was clear and gave a sketch of the general rationale of my blog 'Capitalism and democracy'. 



12 comments:

  1. That's definately mind blowing.
    Follower

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  2. Interesting, I look forward to more

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  3. I bet good debates are to be had here in the future.

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  4. awesome stuff man, keep it up! following now.

    Follow me back at: http://linkisnotdead.blogspot.com/

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  5. Interesting opinion. Honestly a bit over my head, but it seems like you know what youre talking about. Great blog, by the way. It seems really interesting. I'll definitely follow. Check out my random poem blog if you have time. Peace!

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  6. I think you would make a great president.

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  7. Cool post, capitalism is a love-hate thing isn't it? If it benefits you great, if it doesn't, life sucks! Following and supporting :D

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  8. Good job in including Locke in there, I would put some more "founding" scholars when it comes to classical liberalism, etc.

    follow me brahs!

    http://politicalskies.blogspot.com/

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  9. capitalism is a fuckin beast u should fear.

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