Capitalism- a socio-economic formation in which private ownership of the factors of production is widespread, and the distribution of the produced product, goods and services is carried out through market mechanisms. Capitalism is characterized by |: free enterprise, competition, the desire of producers and sellers of goods to make a profit. Capitalism, being a socio-economic system, is closely related to the socio-political system of the state and, in many ways, predetermines the latter. Capitalism replaced the feudal-serf system at the end of the Middle Ages, while changing its original appearance. At the initial stage, capitalism was characterized by tough exploitation of labor, the desire to get maximum profit. At the present stage of development of civilization, capitalism is oriented towards social goals, the achievement of scientific and technological progress, and is based on the achievement of producers' interest in the results of labor. In modern political economy, the main features of capitalism are: private ownership of the means of production; wage labor system; freedom of enterprise and choice; free competition; profit; limiting the role of the state
In a capitalist system of free competition, material production resources and significant monetary assets are owned by capitalists and capitalist enterprises. Private property allows capitalists to acquire, control and dispose of material and financial resources at their own discretion. The system of hired labor is a key element of the capitalist economic system and involves the involvement of a wide category of the population in the process of capitalist production of goods and services, which does not own the means of production and financial resources sufficient to organize their own business. Freedom of enterprise and freedom of choice is closely related to private property. Free enterprise means that under capitalism, private enterprises can freely buy resources (labor, means of production, land) and organize the production and sale of goods or services at their own discretion. Free competition means a type of competition between economic agents, in which commodity producers do not have a decisive influence on the market price, and the additional income received from the sale of each additional unit is the market price.
82. The economic system of monopoly capitalism: features of formation and structuring
The modern stage of capitalism is called monopoly capitalism. Monopoly capitalism- this is capitalism in which large enterprises and their unions occupy a dominant position in the markets in order to obtain monopoly profits. Under the conditions of monopoly capitalism, free competition between tens and hundreds of relatively equivalent enterprises is giving way to the dominance of a few enterprises and their various associations, unions or contracts, which make it possible to concentrate a significant part of social wealth and production resources. The desire of the capitalists to obtain maximum profit in conditions of free competition leads to the concentration and centralization of capital, and an increase in the size of enterprises.
Monopoly profit- the profit obtained due to the seller's monopoly position in the market, which is characterized by a high rate of profit.
The main ideologue of monopoly capitalism is Karl Marx, who proved that capitalism is focused on creating monopolies and preserving empires. He called this stage in the development of capitalism imperialism. The concentration of capital in the hands of large enterprises expands the possibilities of applying the achievements of science and technology in production. In real life, monopoly is power over the market. The seller has monopoly power if he can increase the price of his products by limiting the volume of output, produced goods or services. In monopoly markets, there are barriers to entry that make it impossible for a new subject to penetrate its limits. In the process of transition to the formation of large enterprises and their associations, a large role belongs to the active use of the joint-stock form of capital organization and capitalist management. A joint-stock company is formed by combining many individual capitals and personal savings of households by issuing shares.
Cartel- the union of several enterprises of the same industry, the participants of which retain ownership of the means of production and the manufactured product, production and commercial activities.
Syndicate- the unification of several enterprises of one industry, the participants of which retain ownership of the means of production, but do not have ownership of the product being produced. Syndicate sales are handled by a general sales company.
Trust- an association of enterprises, firms, whose members lose production and trade independence and carry out their activities taking into account the decisions of the management center.
Concern- a large association of enterprises linked by a common interest, agreement, capital, participation in joint activities. International concerns are called transnational corporations. Banks and other lending institutions actively provide loans on favorable terms, assist corporations in the distribution of new issues of securities. All these trends are evidence of the formation of financial and monopoly capital.
Capitalism is only one of the socio-economic formations that existed in the world. The history of its formation is associated with such phenomena as colonial expansion and exploitation of workers, for whom the 80-hour work week became the norm. T&P publishes an excerpt from Cambridge economist Ha-Joon Chang, How Does the Economy Work? , which was recently published by the publishing house "MYTH".
The economy of Western Europe is indeed
grew slowly ...
Capitalism originates in Western Europe, in particular in Great Britain and the Benelux countries (which today include Belgium, the Netherlands and Luxembourg), in the 16th-17th centuries. Why it originated there, and not, say, in China or India, which at that time were comparable to Western Europe in terms of economic development, is a subject of intensive and lengthy discussions. Everything has been offered as an explanation, from the contempt of the Chinese elite for practical pursuits (such as trade and industry), to the map of Britain's coal deposits and the discovery of America. We will not speculate about this discussion for a long time. Let's take it for granted that capitalism began to develop in Western Europe.
Before its appearance, Western European societies, like all others in the pre-capitalist era, changed very slowly. Humans were largely organized around agriculture, which used virtually the same technology for centuries with a limited degree of commerce and handicraft production.
Between the 10th and 15th centuries, that is, during the Middle Ages, per capita income increased by 0.12 percent per year. Hence, incomes in 1500 were only 82 percent higher than in 1000. By comparison, this is the amount that China, with its 11 percent annual growth rate, achieved in six years between 2002 and 2008. It follows that from the point of view of material progress, one year in China today is equivalent to 83 years in medieval Western Europe (during this time three people could be born and die - in the Middle Ages, the average life expectancy was only 24 years).
 ... but still faster than the economy
any other country in the world
Notwithstanding the above, economic growth in Western Europe was still well ahead of that in Asia and Eastern Europe (including Russia), which were estimated to have grown three times slower (0.04 percent). This means that over 500 years, the income of the local population has increased by only 22 percent. If Western Europe moved like a turtle, then other countries looked more like snails.
Capitalism appeared "in slow motion"
Capitalism appeared in the 16th century. But its spread was so slow that it is impossible to pinpoint the exact date of his birth. Between 1500 and 1820, the rate of per capita income growth in Western Europe was still 0.14 percent — essentially the same as in the Middle Ages (0.12 percent). In the UK and the Netherlands, growth accelerated in the late 18th century, especially in the cotton and ferrous metals sectors. As a result, from 1500 to 1820 the United Kingdom and the Netherlands achieved economic growth rates per capita of 0.27 and 0.28 percent, respectively. Although these figures are very small by modern standards, they were twice the average Western European figure. This led to a number of changes.
Colonial expansion begins
From the beginning of the 15th century, the countries of Western Europe began to expand rapidly. Called for decency the era of the Great Geographical Discoveries, this expansion included the expropriation of land and resources and the enslavement of the indigenous population through the establishment of a colonial regime.
Beginning with Portugal in Asia and Spain in the Americas, from the late 15th century, Western European peoples began to ruthlessly conquer new lands. By the middle of the 18th century, North America was divided between England, France and Spain. Most of the countries of South America were ruled by Spain and Portugal until the 1810s and 1820s. Parts of India were ruled by the British (mainly Bengal and Bihar), the French (the southeast coast) and the Portuguese (various coastal regions, in particular Goa). Around this time, the settlement of Australia begins (the first penal colony appeared there in 1788). Africa at that time was not "mastered" so well, there were only small settlements of the Portuguese (previously uninhabited islands of Cape Verde, Sao Tome and Principe) and the Dutch (Cape Town, founded in the 17th century).
Francis Hayman. Robert Clive meets Mir Jafar after the Battle of Plessis. 1757
Colonialism was based on capitalist principles. It is symbolic that until 1858 British rule in India was exercised by a corporation (East India Company) and not by the government. These colonies brought new resources to Europe. At first, the expansion was motivated by the search for precious metals for use as money (gold and silver), as well as spices (especially black pepper). Over time, plantations were established in the new colonies - especially in the United States, Brazil and the Caribbean - where slave labor, mostly exported from Africa, was used. The plantations were established to grow and supply new crops to Europe, such as cane sugar, rubber, cotton and tobacco. It is impossible to imagine a time when there were no traditional chips in Britain, tomatoes and polenta (made from corn) in Italy, and in India, Thailand and Korea, they did not know what chili was.
Colonialism leaves deep scars
For years, there has been a debate about whether capitalism would have developed in the 16th and 18th centuries without colonial resources: precious metals used as money, new foods such as potatoes and sugar, and raw materials for industrial production such as cotton. While there is no doubt that the colonialists benefited greatly from their sale, it is likely that capitalism would have developed in European countries without them. In doing so, colonialism undoubtedly ruined colonized societies.
The indigenous population was exterminated or brought to the brink of extinction, and its land with all its resources was taken away. The marginalization of local peoples has been so deep that Evo Morales, the current president of Bolivia, elected in 2006, is only the second head of state on the American continent - a native of the indigenous population, who came to power since the Europeans arrived there in 1492 (the first was Benito Juarez, President of Mexico in 1858-1872).
Many Africans - an estimated 12 million - were taken into slavery and taken to Europe and Arab countries. This not only became a tragedy for those who lost their freedom (even if they managed to survive the difficult journey), but also drained many African societies and destroyed their social fabric. Territories acquired arbitrary borders - this fact affects the domestic and international policy of a number of countries to this day. The fact that so many interstate borders in Africa are straight lines is a clear confirmation of this, since natural boundaries are never straight, they usually run along rivers, mountain ranges and other geographical features.
Colonialism often implied the deliberate cessation of existing production activities in economically developed regions. For example, in 1700, Great Britain banned the import of Indian calico (we mentioned this in Chapter 2) to promote its own production, thereby dealing a heavy blow to the Indian cotton industry. This industry was completely destroyed in the middle of the 19th century by the flow of imported fabrics, at that time already being produced in Britain in a mechanized way. As a colony, India was unable to enforce tariffs or other policies to protect its producers from British imports. In 1835 Lord Bentinck, Governor General of the East India Company, uttered the famous phrase: "The plains of India are white with the bones of weavers."
Start of the industrial revolution
Capitalism did take off around 1820 throughout Western Europe and later in the European colonies in North America and Oceania. The acceleration of economic growth was so sharp that the next half century after 1820 was called the industrial revolution. Over these fifty years, per capita income in Western Europe has grown by 1 percent, which is very small by modern standards (in Japan, there was such an increase in income during the so-called lost decade of the 1990s), and compared with a growth rate of 0, The 14 percent seen between 1500 and 1820 was real turbojet acceleration.
80-hour workweek: the suffering of some
people only got stronger
However, this acceleration in per capita income growth was initially accompanied by a decline in living standards for many. Many people whose skills were outdated - for example, textile artisans - lost their jobs because they were replaced by machines operated by cheaper unskilled workers, among whom were many children. Some cars were even designed for the height of a child. People who were hired in factories or in small workshops supplying raw materials for them worked very hard: 70-80 hours a week was considered the norm, some worked more than 100 hours a week, and usually only half a day on Sunday was allocated for rest.
The working conditions were extremely dangerous. Many British cotton workers died of lung disease due to the dust generated during the manufacturing process. The urban working class lived very cramped, sometimes with 15–20 people in a room. It was considered quite normal for hundreds of people to use one toilet. People were dying like flies. In poor areas of Manchester, life expectancy was 17 years, which is 30 percent less than in the whole of Great Britain before the Norman conquest in 1066 (then life expectancy was 24 years).
The Myth of Free Market and Free Trade:
how capitalism actually developed
The development of capitalism in Western European countries and their colonies in the 19th century is often associated with the spread of free trade and the free market. It is generally accepted that the governments of these states did not tax or restrict international trade (called free trade) and did not interfere with the functioning of the market (free market) at all. This state of affairs led to the fact that these countries were able to develop capitalism. It is also generally accepted that the United Kingdom and the United States were leaders among other states because they were the first to adopt the free market and free trade.
Free trade spreads mainly through non-freedom means
Although free trade was not the cause of the rise of capitalism, it did spread throughout the 19th century. In part, it manifested itself in the very heart of the capitalist world of the 1860s, when Britain adopted this principle and signed bilateral free trade agreements (FTAs), in which both sides lifted import restrictions and export customs duties for each other, with a number of states Western Europe. However, it spread most strongly on the periphery of capitalism - in the countries of Latin America and Asia, moreover, as a result of what no one usually associates with the word "free" - the use of force, or at least the threat of its use.
Colonization was the most obvious route for the spread of "unfree free trade", but even those many countries that were lucky enough not to become colonies had to accept it too. By means of "gunboat diplomacy" they were forced to sign unequal treaties that deprived them, among other things, of tariff autonomy (the right to set their own tariffs). They were allowed to use only a low flat rate (3-5 percent) - enough to boost some government revenues, but too low to protect fragile industries. The most shameful of such facts is the Nanking Treaty, which China had to sign in 1842 after the defeat in the First Opium War. But unequal treaties also began to be signed with Latin American countries, until they gained independence in the 1810s and 1820s. Between 1820 and 1850, a number of other states were also forced to sign similar treaties: the Ottoman Empire (the predecessor of Turkey), Persia (today's Iran), Siam (today's Thailand) and even Japan. The unequal Latin American treaties expired in the 1870s and 1880s, while treaties with Asian countries were in effect in the 20th century.
This statement is too far from the truth. The government played a leading role in the initial stage of the development of capitalism both in Great Britain and in the USA and other countries of Western Europe.
The inability to defend and defend their young industries, whether as a result of direct colonial rule or unequal treaties, significantly contributed to the economic regression of the countries of Asia and Latin America during that period: there was a negative growth in per capita income (at a rate of -0.1 and - 0.04 percent per year, respectively).
Capitalism Shifts to a Higher Gear: The Beginning of Mass Production
The development of capitalism began to accelerate around 1870. Between 1860 and 1910, clusters of new technological innovations appeared, as a result of which the so-called heavy and chemical industries began to rise: the production of electrical equipment, internal combustion engines, synthetic dyes, artificial fertilizers and other products. Unlike the technologies of the industrial revolution, invented by practical men with good intuition, new technologies were developed through the systematic application of scientific and engineering principles. Thus, any invention could be reproduced and improved very quickly.
In addition, the organization of the production process in many industries has been revolutionized by the invention of the mass production system. With the introduction of a moving assembly line (belt conveyor) and interchangeable parts, costs have dropped dramatically. In our time, this is the main (almost universally used) system, despite the frequent statements about its death, sounding since 1908.
New economic institutions have emerged to manage the growing scale of production
At its peak, capitalism acquired the basic institutional structure that still exists today; it includes limited liability companies, bankruptcy law, the central bank, the social security system, labor law, and more. These institutional shifts were mainly due to changes in basic technologies and policies.
Due to the growing need for large-scale investments, the principle of limited liability, which was previously only applied in privileged companies, has become widespread. Therefore, it could now be used by any company that meets certain minimum conditions. With access to unprecedented levels of investment, limited liability companies have become the most powerful vehicle for the development of capitalism. Karl Marx, who recognized their enormous potential before any ardent supporter of capitalism, called them "capitalist production in its highest development."
Before the British Reform of 1849, the essence of the bankruptcy law was to punish an insolvent businessman in the worst case with a debt prison. New laws, introduced in the second half of the 19th century, gave failed entrepreneurs a second chance by allowing creditors to avoid paying interest during business reorganizations (under Chapter 11 of the US Federal Bankruptcy Act, introduced in 1898) and forcing them to write off some of their debts. Now doing business has become less risky.
The rhodes colossusStriding from Cape Town to Cairo, 1892
As companies grew in size, banks also began to grow larger. At the time, there was a danger that the bankruptcy of one bank could destabilize the entire financial system, so central banks were created as lender of last resort to combat this problem - and the Bank of England became the first in 1844.
Due to widespread socialist agitation and increased pressure on the government by reformists regarding the position of the working class, a number of social security and labor laws were introduced since the 1870s: accident insurance, health insurance, old-age pensions and insurance for case of unemployment. Many countries have banned the work of young children (usually between the ages of 10 and 12) and limited the number of hours worked for older children (initially only 12 hours). New laws also regulated working conditions and working hours for women. Unfortunately, this was not done out of knightly motives, but because of an arrogant attitude towards the weaker sex. It was believed that, unlike men, women lacked mental abilities, so they could sign an employment contract that was unfavorable for them - in other words, women needed to be protected from themselves. These social security and labor laws have smoothed out the rough edges of capitalism and made the lives of many poor people better — albeit just a little at first.
Institutional changes have fueled economic growth. Limited liability companies and debtor-loyal bankruptcy laws have reduced the risk associated with business activities, thereby encouraging wealth creation. The central bank on the one hand, and the social security and labor laws on the other, also fueled growth by increasing economic and political stability, respectively, which allowed for increased investment and, therefore, accelerated further economic recovery. The growth rate of per capita income in Western Europe increased from 1 per cent per year during the peak of 1820-1870 to 1.3 per cent during 1870-1913.
CAPITALISM is a socio-economic and socio-political system that replaced feudalism, initially in Western countries, and during the 20th century. spread across the globe. Capitalism, like any other socio-political system, is characterized by its own political institutions, property and other relations, socio-class composition, economic infrastructure, etc. Accordingly, capitalism is based on a certain ideological paradigm that includes the most important components of liberalism, conservatism, social democracy, etc.
Capitalism (Reisberg)
CAPITALISM is an economic system in which private ownership of the factors of production is widespread, and the distribution of the produced product, goods, goods, services is carried out mainly through the market. Capitalism is characterized by free enterprise, competition, and the desire of producers and sellers of goods to make a profit. As a socio-economic system, it is closely connected with the socio-political system of the country, and sometimes largely predetermines the latter.
Capitalism (Lopukhov)
CAPITALISM is a socio-political system, a formation based on private ownership of the means of production, on mass industrial commodity production, market economic ties, competition and free enterprise. In social terms, capitalism is characterized by the presence of powerful strata of bourgeois property owners and hired workers who sell their specific commodity on the labor market - labor power (ability to work).
Capitalism (KPS, 1988)
CAPITALISM is a socio-economic formation based on private ownership of the means of production and the exploitation of wage labor by capitalists. Kazakhstan is the last exploiting formation in history, which is being replaced by socialism, the first phase of communism. Kazakhstan arose during the decay of feudalism and was established as a result of the bourgeois revolutions of the 16th and 19th centuries. The basic law of capitalism is the production and appropriation of surplus value. The essence of capitalist exploitation lies in the fact that capitalists gratuitously appropriate the surplus value that is produced by the labor of hired workers in the process of capitalist production in excess of the value of their labor power. The pursuit of profit intensifies the competition between the capitalists, compels them to expand and improve production, develop technology, and leads to increased exploitation of the working class ...
Capitalism (Orlov)
CAPITALISM is a system of economic and social relations based on private ownership of the means of production (factories, plants, land) and other means of earning profit (income), as well as on the use of civilian labor.
Orlov A.S., Georgieva N.G., Georgiev V.A. Historical Dictionary. 2nd ed. M., 2012, p. 214.
State capitalism
STATE CAPITALISM is a specific socio-economic system aimed at developing the economy. In post-reform Russia - the method (path) of the accelerated development of capitalism. It arose in conditions, on the one hand, of a lack of private capital (due to the protracted process of initial accumulation) necessary for investment in construction (enterprises, railways, etc.), and on the other hand, the possibility of private entrepreneurs relying on government loans, subsidies and government orders for state financial and customs policy.
State-monopoly capitalism
STATE-MONOPOLISTIC CAPITALISM (SMC) - a stage of development of monopoly capitalism, characterized by: the combination of the power of capitalist monopolies with the power of the bourgeois state into a single socio-economic and political mechanism that affects all aspects of social life. In Russia at the beginning of the XX century.
Capitalism (Frolov)
CAPITALISM (French capital - main property or amount) is a socio-economic formation based on private ownership of the means of production and exploitation of hired labor. K. goes through various stages of its development. Free competition, characteristic of the first stage of capitalism, as a result of the development of productive forces, the improvement of technology, and the concentration and socialization of production, gradually leads to the formation of monopolies and imperialism, when the preconditions for the transition to socialism are created.
Capitalism is based on private property, free enterprise, exploitation of labor, and legal equality.
This social formation, which is characterized by the advantage of commodity-money relations, has become widespread throughout the world in different variations.
The advantages and disadvantages that are inherent in a capitalist society
Capitalism, which gradually replaced feudalism, emerged in Western Europe in the 17th century. In Russia, it did not last long, being replaced by the communist system for decades. Unlike other economies, capitalism is based on free commerce. The means of production of goods and services are privately owned. Other key features of this socio-economic formation include:- striving to maximize income, profit;
- the basis of the economy is the production of goods and services;
- widening the gap between the rich and the poor;
- the ability to adequately respond to changing market conditions;
- freedom of entrepreneurial activity;
- the form of government is mainly democracy;
- non-interference in the affairs of other states.
- irrational distribution of labor;
- uneven distribution of wealth in society;
- voluminous debt obligations (loans, borrowings, mortgages);
- big capitalists, based on their interests, influence the government;
- there is no powerful system to resist corruption schemes;
- workers receive less than their labor is actually worth;
- increased profits due to monopolies in some industries.
Features of capitalist society
The task of capitalism is to use the labor of the population for the efficient distribution and exploitation of resources. The position of a person in society under such a system is not determined only by his social position and religious views. Any person has the right to realize himself using his abilities and capabilities. Especially now, when globalization and technological progress affect every citizen of a developed and developing country. The size of the middle class is steadily increasing, as is its importance.Capitalism in Russia
This economic system took root on the territory of modern Russia gradually, after serfdom was abolished. For several decades, there has been an increase in industrial production and agriculture. During these years, almost no foreign products were imported into the country on a massive scale. Oil, machinery and equipment were exported. This situation developed until the October Revolution of 1917, when capitalism with its free enterprise and private property was a thing of the past.In 1991, the government announced the transition to the capitalist market. Hyperinflation, default, collapse of the national currency, denomination - all these terrible events and radical changes Russia went through in the 90s. last century. The modern country lives under the conditions of a new capitalism, built taking into account the mistakes of the past.
type of society based on private property and market economy. In various currents of social thought it is defined as a system of free enterprise, a stage of development of an industrial society, and the modern stage of capitalism is defined as a "mixed economy", "post-industrial society", "information society", etc .; in Marxism, capitalism is a socio-economic formation based on private ownership of the means of production and the exploitation of hired labor by capital.
Excellent definition
Incomplete definition ↓
CAPITALISM
from lat. capitale - interest-bearing money) is a type of society based on private property and a market economy.
The word "capitalism" was introduced into the public consciousness by K. Marx, the author of the famous "Capital". Marxists define capitalism as a social and economic formation that, having reached maturity, will create the preconditions for the emergence of communism. M. Weber sees in capitalism the embodiment in practice of the ethical ideas of German and English Protestants. Many researchers characterize capitalism as "open society", "industrial society", "post-industrial", "informational", "post-informational" ...
If for the communists capitalism is just the prehistory of mankind, for the liberal F. Fukuyama it is its end. In the countries of the "third world", living according to completely capitalist economic laws, capitalism, however, is perceived as an absolute evil and synonymous with neo-colonialism. They still argue about what capitalism really is? A society of class inequality and merciless exploitation, or, on the contrary, a society of general prosperity and equal opportunities? A historically transient stage in world history or just a way of thinking (“capitalist spirit”) and life?
The variety of points of view on the nature of this specific model of the world order does not negate what is its generic feature: capitalism is total commodity production, where a commodity is defined as a product of labor, produced not for one's own consumption, but for sale. This determines all the other attributes and characteristics of capitalism: both the domination of private property (and its sacralization), and the mechanism for obtaining surplus value described in detail by K. Marx in Capital, and the exploitation of hired labor, and the associated alienation of man from the results of his labor , and a democratic state that consolidates this order, and an ideology that justifies the existing state of affairs.
The production of goods and profit is the main goal of the capitalist economy, the raison d'être of its existence. Under capitalism, literally everything is a commodity - up to those who produce them and who consume them: people, ideas, social institutions, and moral foundations. Even formed over millennia, long before the emergence of the bourgeois world order, religious canons in a market society were auctioned off and "capitalized" - as, for example, Protestants did. Their relationship with God (as well as the Jews) is formalized in the form of a trade agreement, where the parties have mutual obligations.
This nature of capitalism was convincingly revealed by K. Marx and F. Engels: “The need for constantly increasing sales of products drives the bourgeoisie across the globe. It should take root everywhere, settle everywhere, establish connections everywhere. " Nowhere before the emergence of capitalism - neither in ancient times, nor in the Middle Ages in Europe, nor in the economies of Eastern civilizations (India, China, the Islamic world) - production was not exclusively of a commodity nature, characteristic of capitalism. And it manifested itself already from the moment of the birth of a new economic order, when in the XIII-XIV centuries. In the city-communes of Northern Italy (Lombardy - hence the name of the now widespread financial institution), the first institutions of a market economy arose - the prototypes of modern banks.
Due to the riskiness of their trade, numerous merchants had a need for other methods of payment when conducting trade operations, rather than cash or by natural exchange (goods for goods). In those days, a wide variety of coins were in circulation, and without a special class of people who were able to quickly navigate the exchange rate, trading would simply be impossible.
It was the money changers and usurers, who lent money to merchants for the purchase of goods, and became the first bankers. They not only issued loans, but took money for safekeeping, transferred clients' funds to other cities and countries through their agents. Then there were written promissory notes - bills, and there was a kind of securities market.
All this was of enormous importance for the development of the economy. Firstly, the creation of a financial structure based on non-cash payments significantly reduced the risks of merchants and made them less dependent on the arbitrariness of kings, feudal lords, robbers and pirates. This, naturally, contributed to the expansion of the geography of trade. Secondly, money itself began to gradually turn into a commodity, and finance emerged as a special, independent type of economic activity.
Many merchants, money changers, usurers have accumulated significant funds, which, in modern terms, have been invested in production. But the shop system that existed at that time with its strict regulation was clearly not adapted to this. It came into conflict with the interests of the growing financial and usurious capital and was actually doomed.
Enterprising businessmen bought raw materials from peasants and distributed them to artisans for processing. This was how the foundations of the future manufacture were laid, which at the first stage of its formation was dispersed: manufacturers lived in different cities and villages, and the owner had to travel and collect the manufactured products. This method of cooperation did not yet have the character of mass production characteristic of capitalism, since there was no division of labor. But a start was made: artisans gradually began to turn into hired workers, which required the abolition of serfdom and other forms of feudal dependence.
The merchants themselves also changed significantly. The economic interests of the class also demanded new forms of its self-organization. Guilds, built on a guild principle, gave way to trading companies. Initially, they were few and often consisted exclusively of relatives.
But with the beginning of the era of great geographical discoveries, the situation changed radically, and the role of trading companies increased dramatically. They became the main engine of world trade and, in turn, initiated the process of discovering new lands and funded expeditions to the New World, Africa, South and Southeast Asia. It is no coincidence that it was in England, where, starting from the 16th century. the largest and richest companies operated - the East India, Guinea, Levantine, Moscow - capitalism began to develop rapidly. These companies provided ideal conditions for the export of British goods around the world, which provided a powerful incentive for the development of industrial production in the country.
The archaic shop structure was unable to provide sufficient volume for export supplies. A manufactory appeared, the main feature of which was the division of labor. Now each employee was no longer engaged in the production of a product from start to finish, but performed part of the work or only one labor operation. This has dramatically increased labor productivity. The products of individual artisans were of higher quality and bore the imprint of the individual craftsmanship of the master. But, of course, more expensive, because their production took a lot of time. Manufacturing, on the other hand, made it possible to produce, albeit of lower quality, but much cheaper goods and, most importantly, in large quantities to satisfy the growing demand. But it was not able to meet the ever-increasing needs of the external and internal markets, since the same primitive technical means of the times of the guilds were used.
A truly revolutionary change began with the beginning of the industrial revolution in the 18th century. A number of inventions: the creation of a steam engine, combing and multi-spindle spinning machines, as well as the use of coal instead of wood in metallurgy, the emergence of new vehicles - a steam engine, a steamer, etc., made it possible to increase production efficiency many times over. It was at this time that the foundations of the economic and social order were formed, which with significant changes, in a modified form, exists today, determining the development of the entire world economy.
The industrial revolution, which completed the formation of the capitalist system, led to serious changes not only in the economy, but also in the social-class structure of society. The bourgeoisie finally took shape, clearly realizing its interests and defending them in the struggle against the nobility. A class of hired workers also arose. Its formation in the country of classical capitalism - England - proceeded dramatically.
The final formation of capitalism was preceded by a period of initial capital accumulation. Indeed, for the organization of machine production, it is necessary, in addition to significant material resources (which the British bourgeois, who had grown rich in trade with the colonies, had at their disposal), and the availability of free hands.
In the XVI-XVII centuries. in England landlords everywhere drove peasants tenants from the land. It became more profitable for landlords to raise sheep, because the demand for wool for textile manufactories has sharply increased. Homeless, landless, possessing nothing but their own hands, yesterday's peasants went to manufactories and factories, turning into proletarians.
In the era of early capitalism, they, like the ancient slaves or serfs, were subjected to merciless exploitation, and their standard of living was just as low.
The bourgeois state with all its might defended the "freedom" of even the last tramp, enshrined it in laws; it is ready to defend the rights and freedoms of all citizens without exception by any means, even to fight for them. Because only a free person can freely sell his labor. The owner and the worker are equally equal and free. But the latter cannot offer any other product on the market except his own labor. And since the worker does not possess the means of production - technology, equipment, his labor itself is too cheap to feed him. He can live only by offering his labor power to the owner of the tools. Naturally, the terms of the deal are dictated to him by the capitalist. The worker may or may not accept them - he is a free man. The same as the owner, who has the right to purchase his services or refuse them.
The difference between the proletarian and the slave is that, as F. Engels wrote, “the slave is sold once and for all, the proletarian must sell himself daily and hourly. Each individual slave is the property of a certain master, and, already due to the interest of the latter, the existence of the slave is secure, no matter how pitiful it may be. The individual proletarian is the property of the entire bourgeois class. The slave stands out of competition, the proletarian is in conditions of competition and feels all its fluctuations on himself. "
In modern conditions, of course, there is no longer the basic dichotomy of the era of classical capitalism "bourgeoisie - proletariat". The current capitalism in its post-industrial, informational version has blurred the boundaries separating classes and strata, changed the outlines of social space. Today, workers in developed countries are co-owners of the enterprises in which they work, and bear little resemblance to the disadvantaged proletarians of the 19th century. In terms of income, they are part of the "middle class" and do not think about any class struggle to destroy the source of exploitation - private property. But neither property relations per se (a powerful state, "socialist" sector operates in the economies of Western states), nor the degree of development of democratic institutions can change the capitalist character of the current world order - a society of total commodity production.
Due to globalization and the international division of labor, developed countries have become the focus of the bourgeoisie and highly qualified personnel, while the proletariat has moved to China, Latin America, Africa, and India. Thanks to another institution of capitalism - the stock market, workers in developed countries themselves became owners of shares in enterprises, while in third world countries, the conditions of workers' existence resemble the dawn of capitalism.
Modern capitalism is characterized by the growing role of transnational corporations (TNCs), globalization and internationalization of economic life, interstate regulation of the economy. This was reflected in the emergence of special organizations: the World Trade Organization (WTO), the International Monetary Fund (IMF), the International Bank for Reconstruction and Development, etc.
In Russia, after 70 years of domination by socialist methods of economic management, the return to capitalism began in the era of perestroika and continued in the 1990s. "Building a just capitalist society", that is, a return to the methods of management a century ago, was accompanied by predatory privatization, bloody redistribution of property, complete lawlessness and arbitrariness.
There is a lot of controversy about the prospects for capitalism. But basically, 2 approaches are fighting: either capitalism is something natural and eternal, or it will give way to a completely different type of society and become a kind of “previous stage”, as capitalism itself once replaced feudalism, which was considered “natural”, eternal and “based on divine laws. "
Excellent definition
Incomplete definition ↓
