RR5

Bowles, S., Edwards, R., & Roosevelt, F. (1993). Understanding capitalism. Oxford,
England.

The author argues that surplus is treated differently depending on the context, by whom
and where it is produced. The economic classes create a chasm between who
produces, and who controls the product. Capitalism is an economic system with two
participants, the workers and the capitalists. The capitalists are the dominant class, and
control how and what the workers get in return for their labor. The surplus is in monetary
form in Capitalism and is either invested further or used to pay the various forms of
production. The author defines the three main defining factors of capitalism are
commodities, wage labor and private party. The capitalist owns the factors of production
and hence has the biggest claim on the benefits derived from it, the main driver of
producing anything is to generate profit, the laborers get wages in return.

The chapter is a good but a rather long introduction to the basic concepts of capitalism.
The information presented is in line with what I understood capitalism is all about. But if
the purpose is to introduce someone to Capitalism, the various statistics presented can
be intimidating.