During the Cold War, the capitalist country of the United States of America opposed the socialist state of the USSR. The confrontation between two ideologies and the economic systems built on their basis resulted in the years of conflict. The collapse of the USSR marked not only the end of an entire era, but also the collapse of the socialist economic model. The Soviet republics, now formerly capitalist countries, albeit not in their pure form.

Scientific term and concept

Capitalism is an economic system based on private ownership of the means of production and their use for profit. In this situation, the state does not distribute goods and does not set prices for them. But this is the perfect case.

The USA is the leading capitalist country. However, even she has not applied this concept in its pure form in practice since the 1930s, when only tough Keynesian measures allowed the economy to start after the crisis. Most modern states do not trust their development solely to the laws of the market, but use the tools of strategic and tactical planning. However, from this they do not cease to be capitalist in their essence.

Prerequisites for transformation

The economies of capitalist countries are built on the same principles, but each of them has its own characteristics. The degree of market regulation, measures of social policy, obstacles to free competition, and the share of private ownership of factors of production vary from one state to another. Therefore, there are several models of capitalism.

However, you need to understand that each of them is an economic abstraction. Each capitalist country is individual, and the features change over time. Therefore, it is important to consider not just the British model, but a variety that, for example, was characteristic of the period between the First and Second World Wars.

Stages of formation

The transition from feudalism to capitalism took several centuries. Most likely, it would have lasted even longer, if not for the first capitalist country, Holland. A revolution took place here during the War of Independence. We can say this because after the liberation from the yoke of the Spanish crown, the country was headed not by the feudal nobility, but by the urban proletariat and the commercial bourgeoisie.

The transformation of Holland into a capitalist country greatly stimulated its development. The first financial exchange opens here. For Holland, it is the 18th century that becomes the zenith of its power, the economic model leaves behind the feudal economies of European states.

However, it soon begins in England, where the bourgeois revolution also takes place. But a completely different model is applied there. Instead of commercial capitalism, the focus is on industrial capitalism. However, most of Europe remains feudal.

The third country where capitalism wins is the United States of America. But only the Great French Revolution finally destroyed the established tradition of European feudalism.

Fundamental features

The development of capitalist countries is a history of making more profits. How it is distributed is a completely different question. If the capitalist state manages to increase its gross product, then it can be called successful.

The following distinctive features of this economic system can be distinguished:

• The basis of the economy is the production of goods and services, as well as other types of commercial activities. The exchange of products of labor does not take place under duress, but in free markets where the laws of competition apply.
• Private ownership of the means of production. The profits belong to their owners and can be used at their discretion.
• Labor is the source of life's benefits. And no one is forcing anyone to work. The inhabitants of the capitalist countries work for monetary compensation, with which they can satisfy their needs.
• Legal equality and freedom of entrepreneurship.

Varieties of capitalism

Practice always corrects theory. The nature of the capitalist economy differs from one country to another. This is due to the ratio of private and state property, the volume of public consumption, the availability of factors of production and raw materials. The customs of the population, religion, legal framework and natural conditions leave their mark.

There are four types of capitalism:

• Civilized is typical for most countries of Western Europe and the United States.
• The homeland of oligarchic capitalism is Latin America, Africa and Asia.
• Mafia (clan) is characteristic of most countries of the socialist camp.
• Capitalism with an admixture of feudal relations is widespread in Muslim countries.

Civilized capitalism

It should be noted right away that this variety is a kind of standard. Historically, civilized capitalism appeared first. A characteristic feature of this model is the widespread introduction of the latest technologies and the creation of a comprehensive legislative framework. The economic development of the capitalist countries that adhere to this model is the most stable and planned. Civilized capitalism is characteristic of Europe, USA, Canada, New Zealand, Australia, South Korea, Taiwan, Turkey.

Interestingly, China has implemented this very model, but under the clear leadership of the Communist Party. A distinctive feature of civilized capitalism in the Scandinavian countries is a high degree of social protection of citizens.

Oligarchic variety

The countries of Latin America, Africa and Asia are striving to follow the example of the developed countries. However, in reality, it turns out that several dozen oligarchs own their capital. And the latter do not at all strive to introduce new technologies and create a comprehensive legislative framework. They are only interested in their own enrichment. However, the process is still going on gradually, and oligarchic capitalism is gradually beginning to transform into a civilized one. However, this takes time.

After the collapse of the USSR, the now free republics began to build their economies according to their own comprehension. Society needed profound transformations. After the collapse of the socialist system, everything had to start over. The post-Soviet countries began their formation from the first stage - wild capitalism.

During the Soviet era, all property was in the hands of the states. Now the capitalist class had to be created. During this period, criminal and criminal groups began to form, the leaders of which would later be called oligarchs. With the help of bribes and political pressure, they took possession of a huge amount of property. Therefore, the process of capitalization in post-Soviet countries was characterized by inconsistency and anarchy. After a while, this stage will end, the legal framework will become comprehensive. Then it will be possible to say that clan capitalism has grown into a civilized one.

In a Muslim society

A characteristic feature of this type of capitalism is the maintenance of a high standard of living for citizens of the state through the sale of natural resources, such as oil. Only the extractive industry is being widely developed, everything else is purchased from Europe, the USA and other countries. in Muslim countries are often built not on objective but on the commandments of Sharia.

An alternative to feudalism as a form of management did not appear immediately. And even having arisen on the basis of decaying feudalism, the capitalist organization of production for a long time was used in limited ways and brought little income. Moreover, the unevenness was manifested territorially - the countries were gradually entering a new stage of economic development.

Each country had its own incentives to drive change. The petrels of capitalism (England and Holland) differed from other countries in geography, which determined the widespread development of trade in these countries. The events of the transition from feudalism to capitalism dictated new conditions for economic development. The great geographical discoveries and the associated appearance of the world market, the "price revolution" also associated with the colonies, the introduction of completely new technologies into production - all this could not but serve as prerequisites for the widespread introduction of a new method of production. In this way the capitalist has become.

The starting point of capitalism

The starting point of capitalism, many researchers consider the initial accumulation of capital - namely, the process of taking away the means of production from small producers, the accumulation of large sums of money in the hands of merchants, usurers, farmers, and workshop foremen.

Then, in the leading countries of Europe (England, Holland), simple capitalist cooperation arose - the future prototype of manufacturing. That, in turn, having given the economy a big boost, having gone through many transformations, turned into a capitalist factory.

All this economic evolution was accompanied by a sharply increased role of England, which to this day plays an important role in its economy. But then - in the 14-16 centuries, during the formation of capitalism, English wool provided the world's cloth-making. All changes in England took place more intensively, including the initial accumulation of capital.

Dutch economic development was strongly stimulated mainly by the country's geographical conditions. The economy of the marginal Dutch lands was based on sea trade, as well as the personal freedom of the peasants - which was specific to Europe. Only in the 18th century, the absence of factory production as a new and progressive form of capitalist production, coupled with the endless wars waged by Holland, pushed this economic maritime power back. England became a full-fledged world leader, in which the bourgeois revolution of 1642-1660 became a powerful impetus for capitalism.

The active development of foreign trade, the spread of banks - all this served to accelerate the development of capitalism in England. The position of the peasants, suitable conditions for the free development of trade - these are the main reasons for the primacy of England over France, where the peasants were stratified (which slowed down and complicated their landlessness, like the peasantry of England), and the bourgeoisie is passive.

Germany, at that time in the form of many principalities, suffered economic losses due to the Thirteen Years War and the intensified exploitation of peasants by feudal lords.

Thus, one can come to the conclusion that the genesis of capitalism would have been impossible without the process of decomposition of feudalism. This process, as we can see, is not one-time, it differs in different countries. The development of capitalism in each individual country took place under the influence of economic, social and geographical conditions, and each time with some specific features.

Built on the basis of private property rights and free enterprise. The phenomenon originated in Western Europe in the 17th-18th centuries and is now widespread throughout the world.

The emergence of the term

The question "what is capitalism" has been studied by many economists and scientists. Karl Marx is especially responsible for highlighting and popularizing this term. This publicist wrote the book "Capital" in 1867, which became fundamental for Marxism and many left-wing ideologies. The German economist in his work criticized the prevailing system in Europe in which entrepreneurs and the state mercilessly exploited the working class.

The word "capital" arose somewhat earlier than Marx. Initially, this was jargon common on European exchanges. Even before Marx, the famous English writer William Thackeray used this word in his books.

The main features of capitalism

To understand what capitalism is, you need to understand its main features that distinguish it from other economic systems. The basis of this phenomenon is free commerce, as well as the production of services and goods by individuals. It is also important that all this is sold only in free markets, where the price is determined depending on supply and demand. Capitalism does not imply government coercion. In this it is opposite to the planned economy that existed in many communist countries, including the USSR.

Capitalism is the driving force behind capitalism. These are means of production that are privately owned and are needed to make a profit. In everyday life, capital most often means money. But it can also be other property, such as precious metals.

Profit, like capital, is the property of the owner. He can use it to expand his own production or to meet his needs.

The life of a capitalist society

Capitalist society makes its living through free employment. In other words, labor is sold for wages. So what is capitalism? This is the fundamental freedom of the market.

In order for a society to have capitalist relations, it needs to go through several stages of development. This is an increase in the amount of goods and money in the market. In addition, capitalism also needs a living labor force - specialists with the necessary skills and education.

Such a system cannot be controlled from a specific center. Each member of capitalist society is free and can dispose of his own resources and skills at his own discretion. This, in turn, means that any decision implies individual responsibility (for example, for losses due to incorrect investment of money). At the same time, market participants are protected from encroachment on their own rights by laws. Rules and regulations create the balance that is necessary for the stable existence of capitalist relations. An independent court is also needed. He can become an arbiter in the event of a dispute between two market participants.

Social classes

Although it was Karl Marx who is best known as a researcher of capitalist society, even in his era he was far from the only one who studied this economic system. The German sociologist paid a lot of attention to the working class. However, even before Marx, Adam Smith investigated the struggles of various groups in society.

The English economist identified three main classes within capitalist society: capital owners, landowners, and proletarians who cultivated this land. In addition, Smith identified three types of income: rent, wages, and profit. All these theses later helped other economists to formulate what capitalism is.

Capitalism and a planned economy

Karl Marx in his own writings admitted that he did not discover the phenomenon of the class struggle in capitalist society. However, he wrote that his main merit was the proof that all social groups exist only at a certain stage of historical development. Marx believed that the period of capitalism is a temporary phenomenon that should be replaced by the dictatorship of the proletariat.

His judgments have become the basis for many leftist ideologies. Including Marxism turned out to be a platform for the Bolshevik party. The history of capitalism in Russia turned into the 1917 revolution. The Soviet Union adopted a new model of economic relations - a planned economy. The concept of "capitalism" became a curse, and the Western bourgeoisie began to be called nothing other than the bourgeoisie.

In the USSR, the state assumed the functions of the last resort in the economy, at the level of which it was decided how much and what to produce. This system turned out to be clumsy. While in the Union the emphasis in the economy was on the military-industrial complex, competition reigned in the capitalist countries, which resulted in an increase in income and prosperity. At the end of the 20th century, almost all communist countries abandoned the planned economy. They also moved on to capitalism, which is the engine of the global community today.

Who is called a capitalist? First of all, this is a person who exploits the working class to increase their own wealth and welfare. Typically, this is the one who takes the surplus product and always strives to get rich.

Who is a capitalist?

The capitalist is the representative of the ruling class in bourgeois society, the owner of capital, who exploits and uses hired labor. However, in order to fully understand who a capitalist is, it is necessary to know what “capitalism” in general is.

What is capitalism?

In the modern world, the word "capitalism" occurs quite often. In this way, the whole social system in which we now live is described. In addition, many people think that this system existed hundreds of years ago, successfully functioning for a large amount of time and shaping the world history of mankind.

In fact, capitalism is a relatively new concept that describes a social system. For a brief historical acquaintance and analysis, you can refer to the book of Marx and Engels "The Communist Party Manifesto" and "Capital".

What exactly does capitalism mean?

Capitalism is a social system that now exists in all countries of the world. Within this system, the means for the production and distribution of goods (as well as land, factories, technology, transportation systems, etc.) belong to a small percentage of the population, that is, to certain people. This group is called the "capitalist class".

Most people sell their physical or mental labor in exchange for wages or compensation. Representatives of this group are called the "working class". This proletariat must produce goods or services that are subsequently sold for the purpose of making a profit. And the latter is controlled by the capitalist class.

In this sense, they are exploiting the working class. Capitalists are those who live off the profits that come from the exploitation of the working class. Subsequently, they reinvest it, thereby increasing the next potential profit.

Why is capitalism something that is in every country in the world?

In the modern world, there is a clear division of classes. This statement is explained by the realities of the world in which we live. There is an exploiter, there is a wage-earner, which means there is also capitalism, because this is its essential feature. Many may say that the world today is split into many classes (say, the "middle class"), thereby killing all the principles of capitalism.

However, this is not the case! The key to understanding capitalism is when there is a dominant and subordinate class. It doesn't matter how many classes are created, all the same, everyone will obey the dominant one, and so on in a chain.

Is capitalism a free market?

It is widely believed that capitalism means a free market economy. However, this is not quite true. Capitalism is possible without a free market. The systems that existed in the USSR and exist in China and Cuba fully prove and demonstrate this. They believe that they are building a "socialist" state, but they live according to the motives of "state capitalism" (in this case, the capitalist is the state itself, namely, people holding high ranks).

In supposedly "socialist" Russia, for example, commodity production, purchase and sale, exchange, and so on still exist. "Socialist" Russia continues to trade in accordance with the requirements of international capital. This means that the state, like any other capitalist, is ready to go to war to defend its economic interests.

The role of the Soviet state is to act as a functionary of capital and the exploitation of wage labor by methods of setting and controlling targets for production. Therefore, such countries really have nothing to do with socialism.

Very often we use words whose meaning is not entirely clear to us. For example, what is capitalism, historians or, say, political scientists know perfectly well, but not all people without exception. Therefore, in this article we will try to understand this concept, learn something about its origin, as well as about the characteristics and impact on society.

About the meaning of this term

Capitalism is a socio-economic system that was formed in Europe (and then around the world) after the fall. It is based on the acquisition and augmentation of private property, as well as on complete freedom and equality in jurisdiction and trade. It should be noted that the mentioned system, in addition to having an impact on any country, is also a powerful political structure. Capitalism is believed to be based on the principles of liberalism. The latter, in turn, assumes unhindered trade, opportunity and complete freedom of action.

What is capitalism in history

Among the capitalists who lived in the past centuries, it is worth highlighting Kant, Hobbes, Montesquieu, Weber and Locke. It was under the slogans and scientific works of these people that this trend was born in its original form. Protestant ethics, hard work, which should have been inherent in everyone - these are the principles on which capitalism was to be built.

The definition of this issue was detailed by A. Smith in his famous work "Research on the nature and causes of the wealth of nations." It says that only by being hardworking, frugal, and adventurous can you succeed. However, this becomes possible on condition that the English language must not be overlooked and It was they who became the turning points in history that forced the whole of Europe to change its political system.

What is capitalism today

For every modern person, the word "capitalism" is primarily associated with private enterprises, market economy, free competition, equality of opportunity. Almost the whole world is currently built according to this economic scheme.

However, in each country and capital is acquired in different ways, which are provided or not provided for by law. Therefore, the peculiarities of capitalism in a particular state depend on the economic apparatus, on the Constitution, and also, importantly, on the mentality. Somewhere all citizens are given the opportunity to "rise", to become a rich person. There would be a desire. People can easily get a loan from a bank and invest the funds received in the business. In Russia, however, there are no such phenomena - here either pan or disappeared.

How does this system work

You can understand what capitalism is based on the principles of operation of the mentioned socio-economic system. Its functioning consists in the acquisition of capital by individual elements of society. As a result, the social structure is divided into the ruling elite (wealthy people) and everyone else. Such a system has been formed over several centuries, has experienced crises, ups, wars and changes of state regimes in various countries. In the course of all these events, it also became clear that "purely liberal" dogmas are not effective for capitalism. The state and private entrepreneurs cannot completely isolate from each other and coexist at the same time in peace and harmony. Such a scheme of action presupposes the development of further, more serious problems that can destroy both power and capitalism itself.