Basic signs of capitalism

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Basic signs of capitalism
Basic signs of capitalism
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Of great importance for understanding this or that phenomenon of social life are its signs. Capitalism is a system of economic relations based on the dominance of private ownership, freedom of enterprise and focused on making a profit. It should immediately be noted that this concept is the name of only an ideal model, since in no state in the world does such a way of life exist in its pure form.

The emergence of the concept

To analyze the features of the economic development of countries in a historical perspective, its signs help. Capitalism is a term that has been actively used since the second half of the 19th century. It was first used in France, then German and English authors introduced it into scientific circulation.

An interesting fact is that at first it had a negative meaning. Scientists and writers put into this word a negative attitude towards the dominance of finance, which was observed in the developed European countries of the middle of this century. Representatives of socialism (Marx, Lenin and others) used this concept especially actively.

signs of capitalism
signs of capitalism

Market theory and class conflict

Describe development featuresfarming and trade help their signs. Capitalism is a system based on the free functioning of the market, which serves as an arena for confrontation between the working class and the owners. The former seek to sell their power at a higher price, the latter seek to buy it cheaper. In addition, it is the market that is the main condition for trade, without which it is impossible to imagine the existence of the capitalist structure. The second important feature of the system is the concentration of the means of production in the hands of the upper classes and the retention of the labor force by the proletariat.

signs of monopoly capitalism
signs of monopoly capitalism

There is a constant struggle between these groups for labor and pay. This leads to class struggle, which in a number of states led to revolutions. However, practice shows that the capitalist way of life is most acceptable for the normal functioning of states, and therefore, from the beginning of its inception, it quickly spread around the world, capturing almost all spheres of society, including politics and culture. The above features of the system were highlighted by the famous scientist Marx, who devoted one of his most fundamental monographs to this issue.

Protestant ethics concept

To understand the reasons for the emergence of this new way of life for Western European history, its signs help. Capitalism is not only a special form of organization of production, but also a specific way of organizing society. This is how the famous German scientist and sociologist Weber considered this stage of economic history.

Unlike Marx, hebelieved that this system is inherent only in Western European countries. In his opinion, it arose in those states where Protestantism was established, which developed in society the cult of labor discipline, a high degree of social organization, as well as the desire for profit and income. He singled out the following signs of the development of capitalism: the competition of producers, the presence of a dynamic market, the active use of capital in entrepreneurial activity, the desire to obtain maximum profit. And if Marx believed that this way of life not only influences, but also determines the policy of countries, then Weber contrasted these two public spheres, although he recognized that they are closely related to each other.

why the emergence of manufactories is considered a sign of the birth of capitalism
why the emergence of manufactories is considered a sign of the birth of capitalism

Innovation

The main features of capitalism became the object of study of the famous political scientist and sociologist Schumpeter. He singled out the following features of this system: a dynamic market, entrepreneurship and the dominance of private property. However, unlike these authors, the economist singled out such an important component of capitalist production as the introduction of innovations. In his opinion, it is the introduction of innovations that stimulates the rapid development of the economies of countries.

At the same time, Schumpeter attached great importance to lending, which provides entrepreneurs with the opportunity to introduce modern technologies and thereby increase production efficiency. The scientist believed that this way of life ensured the material well-being of society and the personal freedom of citizens,however, he saw the future of the system in a pessimistic light, believing that over time it will exhaust itself.

Rise of manufactures

One of the main prerequisites for the transition from the feudal mode of production to the capitalist was the departure from the old guild system and the transition to the division of labor. It is in this important change that the answer to the question of why the emergence of manufactories is considered a sign of the birth of capitalism should be sought.

main features of capitalism
main features of capitalism

After all, the main condition for the existence and normal functioning of the market is the widespread use of hired labor. In the 14th century, in many European cities, manufacturers abandoned the traditional recruitment of apprentices and began to attract people who specialized in a particular craft to their workshops. This is how the labor market arose, which, according to Marx, is the main feature of the capitalist order.

Types of businesses

In Western European countries, there were various types of manufactories, which indicates the rapid development and introduction of a new method of production. An analysis of the problem under consideration (why the emergence of manufactories is considered a sign of the birth of capitalism) allows us to understand the development of the economy. The owners of scattered enterprises distributed raw materials to workers at home, then, already processed, it went to a professional artisan, who, having made yarn, gave the material to the next manufacturer. So the work was carried out by a number of workers who passed the produced goods along the chain. In a centralizedmanufactory, people worked in the same room, using technology. These different types of enterprises prove the high rate of development of capitalist production on the mainland.

Scientific revolutions

Signs of the birth of capitalism are associated with the peculiarities of the European economy, where the transition to trade began very early thanks to the development of cities and the formation of markets. A new impetus to the development of the capitalist mode of production was the introduction of new technologies. This brought the economy to a fundamentally new level. The use of machines in factories allowed entrepreneurs to increase sales of products. Achievements in the field of science have led to the fact that the creation of the gross product has become cheaper, since instead of workers, machines were now used in enterprises.

signs of the birth of capitalism
signs of the birth of capitalism

The invention of the steam engine, electricity, and the construction of railways were of great importance. The discovery and development of new mineral deposits led to the rapid development of heavy industry and metallurgy. These changes completely changed the urban appearance of the Western European countries, as well as Russia, where, after the abolition of serfdom, the rapid development of industry began. So, the signs of capitalism in the 19th century were determined by the introduction of the achievements of science into production.

Rise of monopolies

During the first stage of the development of capitalism, production organizations were single and medium in size. The scale of their production was not wide, and therefore entrepreneurs could single-handedlyrun your own business. In the 19th century, the system entered a new phase of development. The volume of production increased sharply, factories expanded, which led to the need to combine the efforts of entrepreneurs. Based on the foregoing, one can single out the signs of monopoly capitalism: the concentration of production, the reduction in the number of factories, the emergence of large, capital-intensive enterprises.

signs of capitalism in the 20th century
signs of capitalism in the 20th century

At the turn of the century, heavy industry played a major role: mechanical engineering, metalworking, oil production and others. As a rule, consolidation took place within the framework of any one industry, in which such associations as cartels and syndicates arose. The first concept should be understood as an agreement between several independent enterprises that agree on the price of goods, markets and quotas. The second term means a higher degree of monopolization, in which firms, while maintaining legal and economic independence, organize a single office for the sale of their products.

Large enterprise forms

Signs of monopoly capitalism allow us to understand what the features of the new stage of development of this system were. Trusts and concerns are considered the highest form of association of plants, factories and firms. The first organizations jointly carry out not only sales, but also production, and are also subject to a single management, but at the same time retain financial independence. Trusts are created in any one industry and immediately occupy a leading position. The most developed form of association is consideredconcerns. They are formed in related industries and have common finances.

signs of capitalism in the 19th century
signs of capitalism in the 19th century

Merger of capital provides faster and more efficient integration than the above forms. Signs of capitalism in the 20th century testify to the development of this system due to its entry into a new, higher phase of its development, which gave scientists the opportunity to talk about the onset of the phase of imperialism, which is characterized by the merger of banks and production.

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