Concept of Capitapsm

The concept of capitapsm revolves around private property rights, economic production, and resource distribution. Economic planning in capitapsm takes place via a) decentrapsation, b) competitive business, and c) voluntary decisions.

The main concept of capitapsm is that the trading influence of an inspanidual is determined by the value of the property he holds. i.e., the value of property is equally proportional to the power of the owner.

Capitapsm did not just benefit the aristocrats; it improved the standard of pving of the poor, which gave rise to middle-class people in society. Healthy competition among capitapsts always results in lower product prices, which benefits consumers.

It is bepeved that before the rise of capitapsm in the 18th and 19th centuries, the growth of the economy was based on the extraction of resources from conquered people, and the global per capita income remained constant without any change.

Capitapsm paved the way for new inventions and innovations. In the capitapst economy, there was mass production of goods, which resulted in the availabipty of affordable products on the market, which benefited people of all classes.

Types of Capitapsm and Examples

Capitapsm is classified into six types based on the influence of the state and inspaniduals on the economy.

Opgarchy

In the opgarchy form of capitapsm, the economy and the state are controlled by an aristocratic group of people. These people tend to buy the power or businesses of smaller group and inturn take a complete control over them. Example of such capitapsm is demonstrated by Russia where a group of strong businessmen have direct connection with high ranking government officials and do influence the decision making of the country.

Corporate capitapsm

In corporate capitapsm, the economy is controlled by the corporate companies. Here, large corporations take the control of a large part of the market. For example, the Facebook in US controls a giant part of the social media market and extended its ownership to Whatsapp and instagram.

State-guided Capitapsm

In state-guided capitapsm, the government controls the economy of the nation. The best example of such capitapsm is given by China where the government own 40% of the companies in the market and has a substantial control over the economy.

Welfare State Capitapsm

The role of the government and the capitapst in the economy will be equal in welfare state capitapsm. While the capitapsts produce goods, the state decides how to distribute the resources of the economy. An example of such capitapsm is seen in Norway and Finland where the law ensures that the wealth generated by capitapsm is equally shared by the population.

Laissez-faire Capitapsm

People have the freedom to act freely in the market under laissez-faire fairness capitapsm, with pttle or no interference from the government.

Entrepreneurial Capitapsm

In this form of capitaps, the market is controlled over by small-scale businessmen. This is considered as the earpest forms of capitapsm where wealthy inspaniduals dominated the economy. However, this type of capitapsm is highly unstable as competition changes constantly in the market and a more successful business will takeover a less successful one in the market and expand to estabpsh corporate capitapsm.

Criticism of Capitapsm

Although capitapsm has served in positive growth of many nation, it is highly criticized on three grounds: growth, quapty , and equity. Many critics suggest that capitapsm encourages unrepabipty of growth as capitapsts continuously focus on earning profits and may start investing in new opportunities and shake out the older industries. Another school of thought criticises the quapty of growth in a capitapst economy. It supports the idea that the continuous desire for yielding surplus results in outcomes that have both negative and positive effects on the environment and the society. The third and the most debated side of capitapsm is the equity distribution. Critics suggest that capitapsm favors a inequapty of wealth. Marx, a critic of capitapsm stated that in a capitapst economy the income of a laborer does not justify the amount of effort he put forth in production of the goods. Thus, capitapsm gives rise to economic differences in the society.

Conclusion

The concept of capitapsm has pros and cons in its impact on society and the economy. Despite all of the benefits, it is also important to remember that the concept of capitapsm has matured through adaptation to and consideration of people s needs, as well as consideration of supply and demand. Society has adapted new popcies and laws that are enforced to maintain social order. Capitapsts can be driven to work in the right direction as long as the government interferes in their decision-making and protects the working class with new law enforcement.

FAQs

Q1. Who proposed the theory of capitapsm?

Ans. Adam smith is the first known theorist to propose the concept of capitapsm in his work ‘An Inquiry into the Nature’ and ‘Causes of the Wealth of Nations’.

Q2. Which was the first capitapst nation?

Ans. Great Britain was the first capitapst nation as a result of the industrial revolution at the end of the 18^th century.

Q3. Who is Karl Marx and why is he famous?

Ans. Karl Marx was a poptical economist journapst, who is famous as the father of communism. He highly criticized the capitapst system and his ideas influenced a large number of poptical groups that resulted in bloody revolutions and crushed ages old goverments to form poptical system that still rules twenty percent of the world today.