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Capitalism itself has evolved with the passa ge of time

What is Capitalism? The word capitalism is now quite commonly used to describe the social system in which we now live. It is also often assumed that it has existed, if not forever, then for most of human history. In fact, capitalism is a relatively new social system.1 But what exactly does 'capitalism' mean? Capitalism is the social system which now exists in all countries of the world. Under this system, the means for producing and distributing goods (the land, factories, technology, transport system etc) are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of people must sell their ability to work in return for a wage or salary (who we refer to as the working class.) The working class are paid to produce goods and services which are then sold for a profit. The profit is gained by the capitalist class because they can make more money selling what we have produced than we cost to buy on the labour market. In this sense, the working class are exploited by the capitalist class. The capitalists live off the profits they obtain from exploiting the working class whilst reinvesting some of their profits for the further accumulation of wealth. This is what we mean when we say there are two classes in society. It is a claim based upon simple facts about the society we live in today. This class division is the essential feature of capitalism. It may be popular to talk (usually vaguely) about various other 'classes' existing such as the 'middle class', but it is the two classes defined here that are the key to understanding capitalism. It may not be exactly clear which class some relatively wealthy people are in. But there is no ambiguity about the status of the vast majority of the world's population. Members of the capitalist class certainly know who they are. And most members of the working class know that they need to work for a wage or salary in order to earn a living (or are dependent upon somebody who does, or depend on state benefits.) The term capitalist as referring to an owner of capital (rather than its meaning of someone adherent to the economic system) shows earlier recorded use than the term capitalism, dating back to the mid-seventeenth century. Capitalist is derived fromcapital, which evolved from capital, a late Latin word based on proto-IndoEuropean caput, meaning "head" — also the origin ofchattel and cattle in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries in the sense of referring to funds, stock of merchandise, sum of money, or money carrying interest.[17][18][19] By 1283 it was used in the sense of the capital assets of a trading firm. It was frequently interchanged with a number of other words — wealth, money, funds, goods, assets, property and so on. [17]

The origins of capitalism: 13th - 16th century AD The underlying theme of capitalism is the use of wealth to create more wealth. The simplest form of this is lending money at interest, reviled in the Middle Ages as the sin of usury. At a more sophisticated level capitalism involves investing money in a project in return for a share of the profit. In the case of a single owner of an industrial enterprise (such as a factory), the system reveals a characteristic distinction. All the profits go to one man, though many others share the work. Full-scale capitalism results in an inevitable divide between employer and employed, or capital and labour. In the Middle Ages the attitude of the church to usury means that capitalism has little chance of developing. Even so, this is the period in which its roots lie. With the rapid development of European trade and prosperity in the 13th century, cities in Italy and the Netherlands witness a creation of wealth which is capitalist in kind - because any merchant is in essence a capitalist, risking his pot of money each time he buys in one place to sell in another. Florence in the 14th century demonstrates more familiar indications of capitalism. It has its great banking families, engaging in transactions across the breadth of Europe. It even has a successful strike, by underpaid day workers in the cloth industry who want a share in the benefits enjoyed by their employers. In the following century, in France, the story of Jacques Coeur provides an astonishing individual example of the rapid creation of wealth through skilful investment in foreign merchandise. Such cases contain elements of later capitalism, but their limited scale makes them in a certain way different. There have always been markets, and no doubt in every civilization canny individuals have been able to use the markets to amass a quick fortune. The essential characteristics of capitalism only become evident with an increase in scale - in two quite separate contexts. One is the formation of joint-stock companies, in which investors pool their resources for a major commercial undertaking. The other, not evident until the Industrial Revolution, is the development of factories in which large numbers of workers are employed in a single private enterprise. Chartered companies and joint stock: 16th-17th c. AD Speculative trading enterprises in the Middle Ages are undertaken by individual merchants, operating in family groups or partnerships but acting essentially on their own behalf. Some, such as as the Polo family, are entirely independent. Others bind themselves voluntarily into guilds, such as the Hanseatic League, accepting certain regulations on their trade in return for the support of a powerful organization. In the 16th century, with the expanding energies of the Atlantic kingdoms in a new era of ocean voyages, the situation changes. In long expeditions to distant and dangerous places, both the risk and the potential profit are greatly increased. A new system is called for. Merchants risking their fortunes in these unpredictable adventures need a special level of support. Equally it suits governments to encourage their endeavours, for the sake of increasing trade but also to extend the nation's reach through settlements and colonies overseas. The result is the chartered company. A charter, granted by the crown, gives the merchants in a company the monopoly on trade with a specific region for a given number of years - together with strong legal powers to enforce order in distant places while carrying out its business.

In London the brokers gather at first in Jonathan's coffee house. since the capitalist must risk money in the hope of making more. the Hudson's Bay Company (1670) and the South Sea Company (1711). In doing so they become joint holders of the trading stock of the company. one of the basic elements of capitalism evolves. has prompted the theory that the Reformation is a cause of capitalism. If certain virtuous people are predestined to be saved in the next world. The two earliest and most famous of such bubbles (dealing in pieces of paper of even less use than tulip bulbs if no one else wants to buy them) burst in the same year . The merchants whose funds provide the bank's initial loan to the government acquire thereby a share in the stock of the new company. Though native in many parts of the world (from Italy to Japan). This useful slight of hand is contrived with the help of the Calvinist doctrine of predestination. The first tulips seen in northern Europe arrive in Antwerp in 1562 as a cargo of bulbs from Istanbul. Calvinism positively encourages the purposeful investment of money. It even subtly contrives to suggest that wealth may itself be a sign of virtue. enabling people to buy and sell a share in an enterprise or commodity with which they have no direct connection. The resulting organization is the joint-stock company. Speculation: from the 17th century AD Speculation is an intrinsic part of capitalism. which becomes the state religion of the Netherlands after the Great Assembly of 1651. London's coffee houses: from AD 1652 . Calvinism and capitalism: 17th century AD The development of capitalism in northern Protestant France and England in 1720. in the capital cost of ships and the expense of their crews on journeys lasting months and sometimes years. Prices soar for a rare specimen. In a craze lasting four years. When the risk is undertaken as a direct part of a productive enterprise (buying a machine to make something with. it is easily recognizable as a straightforward business activity. Demand soon exceeds supply. such as the Netherlands and England. in which investors can contribute variable sums of money to fund the venture. The most immediate way in which the Reformation aids the capitalist is by removing the stigma which the Catholic church has traditionally attached to money-lending . the procedure becomes much closer to gambling . Fortunes are made until the market crashes. by presenting luxury and self-indulgence as vices and thrift as a virtue. Of later ventures launched on a similar basis. willing to arrange deals between buyers and sellers of shares in return for a cut on each transaction. The joint-stock principle can equally well be applied to unincorporated companies (trading without a royal charter). In the early 17th century a single bulb of a new species is recorded as constituting a bride's entire dowry.or usury. Yet it happens in the real world well before any similar bubble in stocks and shares. Investors can buy into a company even if they have no personal link with its trading activities. but to sell them on unseen at a higher price. these flowers strike a particular chord in the Netherlands. This is particularly true of the Calvinist variety of the reformed faith.Such undertakings tie up large sums for money for long periods before any profit can be realized. which receives its royal charter in 1555. in the pejorative Biblical term. then perhaps success in this one is an advance indication of God's favour. in the spring of 1637. A large number of speculators need to be persuaded to share the risk. when founded in 1694. The first joint-stock enterprise established in Britain is the Muscovy Company. or a ship with which to trade overseas). particularly since the beginnings of capitalism can be seen far earlier. History's first example of a speculative run on the market is the famous Dutch tulip mania of 1633-7. Even the Bank of England. whereupon equivalent fortunes are lost. By the same token an investor's share in the company's stock can be sold at whatever price buyer and seller may agree upon. With this concept. But once a system of stockbroking is in place. Tulip mania is like a satirical parody of a stockmarket boom and bust.with all its attendant excitements and dangers. But this states the case rather too strongly. A natural next step is the emergence of specialist brokers. many of which are set up in the 17th century. In 1633 the tulip market in Holland goes into a speculative spasm.not to grow them or enjoy the flowers. precious objects are pawned and houses and estates are mortgaged to buy rare tulip bulbs . the best known are the East India Company (1600). with a right to share in any profits in proportion to the size of their holding. is organized at first on joint-stock lines. Nevertheless there are elements in Reformation thought which greatly help the development of capitalism.

is rapid inflation and speculative hysteria. In 1717 he launches a separate venture. At Jonathan's coffee-house there are customers with money to risk in a different way. These are the investors who take a share in a trading venture. at an extremely beneficial rate. to Africa and the West Indies. Mississippi Bubble: AD 1720 In 1716 the French royal finances are heavily in deficit after the expensive wars of Louis XIV.where the shares of the South Sea Company have an equally irresistible allure to speculative investors. like clubs. At the end of 1720 the bubble bursts. At first both enterprises thrive. Law has the power and the freedom to issue shares and bank notes at will to keep his creature alive and well. are brought under his control. acquire their own identity and clientele. Law has published in 1705 a treatise entitled Money and trade considered. the duke of Orléans. include companies with monopolies for Hudson's Bay (1670). Law's theory is that a national bank issuing notes as currency will have the effect of stimulating the economy. The price of Law's shares rise 36-fold. The enterprises in which they participate are joint-stock companies. for shares in the company. Shares in such companies can be bought and sold at Jonathan's coffee house. The bubble begins only in 1720. is the Banque de France finally established long after the same step is taken in other European countries. to develop the French territories in the Mississippi valley. accepting part of the risk in return for part of the profit. chartered when the coffee-houses are already in business. The experience of 1720 leaves the French with a lasting distrust of national banks with the power to issue paper money. South Sea Bubble: AD 1720 The company at the centre of England's notorious bubble of 1720 has been in business for nearly ten years. prompted by a scheme for the company to take over much of the national debt. The regent. . Ship owners and sea captains congregate at Edward Lloyd's. is persuaded by a Scotsman. to undertake an experiment in banking. Not until Napoleon needs funds for his war effort. Their circle develops into the insurance giant Lloyd's of London. the same phenomenon is occurring across the Channel in England . with a proposal for supplying the nation with money. This is done by offering holders of government bonds the chance to exchange them. The price of the shares begins to rise. It was established in 1711 as the South Sea Company. retaining the name of the coffee-house owner. to the East Indies and China. when the king becomes a governor. Soon much of England's business is being conducted in these congenial establishments where merchants can gather to strike their bargains over a cup of the newly fashionable liquid. in the early months of 1720. and Law acquires ever greater responsibilities and commercial power. insuring it against disaster in return for a premium. the Louisiana Company. Africa (1672) and the South Sea (1711). Law flees from France. It first becomes a fashionable share to buy in 1718. All the French chartered trading companies. Individual coffee houses. John Law. while also lowering the public debt. While Law's shares are still rising. As more and more people rush to invest in this octopus of an enterprise. in a self-perpetuating frenzy of excitement which takes no account of any underlying value.The first coffee house in London opens in 1652. from 500 to 18000 livres. The result. dying in penury nine years later in Venice. He is allowed to set up the Banque Générale in 1716 for this purpose. Here they discuss terms with men who are prepared to take a gamble on the success of the next voyage. in 1800. by 1719. with a monopoly of British trade to South America and the Pacific. The brokers who arrange the deals here call themselves (from 1773) the Stock Exchange. Others. as also is the national mint and the collection of taxes. of which the East India Company is one of the first.

that public good will follow naturally from the untrammelled pursuit of private interest. which takes for granted that there is an economic advantage in protecting one's own trade by restrictive measures against other nations' goods or merchant ships. . As many fortunes are made on the way up as are lost on the way down. In the five books of his Inquiry into the Nature and Causes of the Wealth of Nations (1776) Smith ranges over many of the basic concerns of political economy. The first batch are delivered to their purchasers in 1776. it restricts the forming of joint-stock companies. But the act is repealed without any alternative regulation to replace it.By August the price is eight times higher than in January. The second book analyzes the role of capital in enabling labour to be productive. particularly in insurance. this is a modest crash in percentage terms compared to the contemporary Mississippi Bubble in France). opens the first custom-built and water-powered cloth mill at Cromford. In these cases fortunes pass directly from the gullible to the criminal. in a process which will lead eventually to the emergence of a society organized on capitalist principles. He has put money into the manufacture of James Watt's steam engines. The public is exposed anew to the dangers inherent in fraudulent schemes. where people should be free to follow their own best interests without government interference. But in an age without financial regulation the turmoil and the pain inevitably raise suspicions of corruption. shows signs of prospering. until repealed in 1825. The Wealth of Nations: AD 1776 During the second half of the 18th century visible changes are occurring in Britain as a result of the developing Industrial Revolution. The process is observed with a clear analytical eye by the Scottish philosopher Adam and profit. Where previously land has been the traditional source of wealth. The wealth of the nation is being diverted into new and productive channels. In December the shares are back to their January level. The bad taste left by these experiences leads to the rapid passing of the Bubble Act before the end of the year. are noticed to have done well. with the optimism of the 18th century. The remaining three books discuss broader issues of the proper role of government in an economy. Meanwhile the investment frenzy has made possible the launch of a great many other speculative schemes. money is now being put into manufacturing enterprises. Smith comes down strongly against the prevailing theory of mercantilism. Matthew Boulton. The king and his German mistresses. along with certain government ministers. Many joint-stock companies are set up under other names in Britain during the 18th century. the majority of which (unlike the South Sea Company itself) are fraudulent. representing a fall of nearly 90% in a few months (even so. and pinpoints two other elements which affect prices in a developed society . In the year when Boulton and Watt deliver their first engines. Smith argues instead that economic benefit derives from the natural competition of the market place. Smith publishes a treatise which becomes the definitive statement of classical capitalism and the free market. In the same decade the investment of another entrepreneur. harming the honest entrepreneur as much as deterring the confidence trickster. He believes. In 1771 the greatest of the new entrepreneurs. Richard Arkwright. but the slump once it begins is even more rapid. The first book points to labour rather than land as the source of a nation's productive wealth. For a little over a century. particularly with the Industrial Revolution gathering pace and requiring ever more capital. In practice legal loopholes are found. The Bubble Act is repealed in England in 1825 because it is a time of economic boom and there is increasing public pressure to invest. Not until the Joint-Stock Companies Act of 1844 are effective regulations introduced. and the purchase of land the natural investment for anyone with a spare fortune.

With confidence gone.the 'sod cabin'. For the first time convoys of Conestoga wagons head eastwards. Loans are needed too for the livestock and seeds and implements and rolls of barbed wire which a pioneer farmer needs before he can get to work (the family house is a lesser priority . Investors rush to turn their assets into gold. while the value of their land goes steadily up. financiers and politicians focus their concern on whether the nation's currency is sound. and the infrastructure of canals and roads. His arguments against interference relate to the economic sphere. Boom and bust: AD 1877-1893 The pattern of boom and bust in late 19th-century America is a dramatic example of what has since come to seem an endemic aspect of capitalism. thanks to the Homestead Act of 1862 (granting 160 acres of public land in the west to any family farming it for five years) and the lavish allocations of territory to the railway companies. Kansas and western Texas offering attractive terms. In Kansas We Busted'. piling up vast snowdrifts against the barbed wire fences. 74 railway companies and more than 15. Nebraska. but this does not deter the streams of immigrants coming west on the railways (among them now Scandinavians. these faraway events are as yet more painful on the plains than in the offices of Wall Street (established by now as the nation's main financial centre). for streets and buildings appropriate to their growing wealth. in a saga beginning in the midwest. becomes a feature of the plains). where investors are the only losers). and panic feeds on panic. And for the ten years of good rainfall. Recognizing a potential crisis.000 other . In January an unprecedented blizzard sweeps the plains. Agents of eastern banks travel through Dakota. which proves to be the pattern for the next ten years. the supply of easy credit dries up. A natural disaster can have the same result. In April 1893. This pattern is different from speculative mania of a purely financial kind (as in the South Sea Bubble. So can a single event of mainly symbolic importance in the financial markets.defence. the crop duly plays its part. Growing crops here seems easy. By the end of 1893 the federal gold reserve is $80 million and the shutters have come down on 600 banks. bearing slogans such as 'In God We Trusted. Germans. A double disaster strikes in 1887. And land on which to grow them is easily come by. Sometimes a sudden collapse in market prices triggers the panic which ends the boom (a drop in the price of cotton has this effect in the USA in 1819 and 1837). The new towns borrow money too. shortly after President Cleveland enters office for the second time.Smith recognizes the necessary role of government in many fields . justice. from 1877. cut from turf. from 1877. Next year's crop will enable the pioneer families to pay their local taxes and to service their debts. This turns out to be the symbolic moment which provokes the crash. In practice land is often acquired from middlemen and speculators. In this mood of optimism mortgages are easily available. His treatise profoundly influences the laissez faire policy of the 19th-century and its revival in the Thatcher-Reagan era. at a time when the international price of wheat is falling (by 30% during the 1880s). Interest on loans cannot be met. Hungarians and Poles). This soon develops into a disagreement about the relative roles of gold and silver in the management of the economy. there is an unusually high level of rainfall on the plains. All these characteristics are seen in America between 1877 and 1893. It is a misfortune that during the boom years in the midwest. But there is a general consensus that the government must hold a minimum reserve of $100 million in gold. the reserve falls below this magic figure. Financiers on Wall Street also see profit in the west. The harvest is a fraction of its usual amount. Cattle perish in their thousands. In the spring the open range seems empty of life. Though money has been lost. An almost invariable ingredient in each cycle is too much credit extended by banks. where the government should merely prevent monopolies (which distort the market). This is followed by a summer of drought.

P.commercial enterprises. The debate between proponents of private versus state capitalism is centered around questions of managerial efficacy. and the role of the state is limited to protecting the rights to life. productive efficiency. In 1895 the banker J.000 to bring the still falling reserves back to $100. An example of this is colonists living in America who were only allowed to trade with and purchase goods from their respective mother countries (Britain. Productive enterprises are privately owned. [edit]State capitalism Main article: State capitalism State capitalism consists of state ownership of the means of production within a state. and fairest in the distribution of the wealth created. at least a moderate degree of market allocation and capital accumulation. The Republican candidate. [edit]Free-market capitalism Free market capitalism consists of a free-price system where supply and demand are allowed to reach their point of equilibrium without intervention by the government. All these forms of capitalism are based on production for profit. is on the side of gold. Morgan provides the government with $62. The next presidential election. Mercantilism holds that the wealth of a nation is increased through a positive balance of trade with other nations. and consequently. and property. the state apparatus is utilized to advance national business interests abroad. In the summer of 1896 gold is found in the Klondike. William McKinley.). The dominant forms of capitalism are listed here. etc. Capitalism is the physical work process by which wealth is created in excess of the quantity consumed in the production of it. [edit]Social market economy A social market economy is a nominally free-market system where government intervention in price formation is kept to a minimum but the state provides significant social security. Types of capitalism There are many variants of capitalism in existence. in 1896.000. [edit]Mercantilism Main article: Mercantilism See also: Protectionism A nationalist form of early capitalism where national business interests are tied to state interests. [edit]Corporate capitalism . The social market is based on private ownership of businesses. The collapse in the economy brings widespread unemployment and hardship. France. liberty. regardless of whether that process is operated by private individuals and companies or by the government. He wins. Confidence slowly recovers. is fought on the issue of gold versus silver. but the tide is probably turning anyway. unemployment benefits and recognition of labour rights through national collective bargaining laws.

and then raise them again once the threat of entry is reduced. have minimum wage laws and minimum safety standards. due to high economies of scale. [edit]Other Other variants of capitalism include:    Anarcho-capitalism Crony capitalism Finance capitalism    Financial capitalism Late capitalism Market economy Economic trade for profit has existed since the second millennium BC. public utilities (e. the government does not prohibit private property or prevent individuals from working where they please. electricity. The government does not prevent firms from determining what wages they will pay and what prices they will charge for their products. Most capitalist economies are defined as "mixed economies" to some degree[citation needed] although the balance between the public and private sectors may vary. Under some versions of capitalism. as well as financing a wide range of programs.[34] However. communications) are able to operate as a monopoly under government regulation. the government regulates the flow of capital and uses financial tools such as the interest rate to control factors such as inflation and unemployment . Role of government In a capitalist system. heating fuel. protect from competition and promote the interests of dominant or established corporations. State monopoly capitalism was originally a Marxist concept referring to a form of corporate capitalism where the state is used to benefit. In addition. Despite anti-monopoly laws. [citation needed] [edit]Mixed economy Main article: Mixed economy A largely market-based economy consisting of both public ownership and private ownership of the means of production. In many countries. which are legally required to pursue profit.g. supervising public utilities and enforcing private contracts. Such firms can temporarily drop prices and accept losses to prevent competition from entering the market. such as issuing money. bureaucratic corporations. however. large corporations can form near-monopolies in some industries.Main article: Corporate capitalism See also: State monopoly capitalism Corporate capitalism is a free or mixed market characterized by the dominance of hierarchical. Many countries have competition laws that prohibit monopolies and cartels from forming. Many countries. the government carries out a number of economic functions. capitalism in its modern form is usually traced to the Mercantilism of the 16th-18th Centuries. Government agencies regulate the standards of service in many industries. such as airlines and broadcasting.

the collapse of the Soviet Union brought further evidence of the superiority of market capitalism over planned economy. gained increasing prominence in the capitalist world. Jean-Baptiste Say. Quesnay's Tableau Économique (1759). 'Physiocrats' like François Quesnay promoted free trade based on a conception that wealth originated from land. a theoretical alternative to Keynesianism that is more compatible with laissez-faire. distribution and exchange of goods in a market that have since formed the basis of study for most contemporary economists. some thinkers argue that a number of trends associated with globalizationhave acted to increase the mobility of people and capital since the last quarter of the 20th century. other thinkers argue that globalization. rising unemployment." [50] In the eyes of many economic and political commentators. The classical political economists Adam Smith. and eventually recession to cause a loss of credibility in the Keynesian welfare-statist mode of regulation. After World War II. In particular. [51] [edit]Perspectives [edit]Classical political economy Adam Smith The classical school of economic thought emerged in Britain in the late 18th century. Western states embraced policy prescriptions inspired by laissez-faire capitalism and classical liberalism. including the concepts of post-industrial society and the welfare state. In France. David Ricardo. [edit]Globalization Although international trade has been associated with the development of capitalism for over five hundred years. Public and political interest began shifting away from the socalled collectivist concerns of Keynes's managed capitalism to a focus on individual choice.Keynesianism and neoliberals In the period following the global depression of the 1930s. described the economy analytically and laid the foundation of the . and John Stuart Mill published analyses of the production. these trends have bolstered the argument that capitalism should now be viewed as a truly world system. even in its quantitative degree. Under the influence of Friedrich Hayek and Milton Friedman. especially under the leadership of Ronald Reagan in the US and Margaret Thatcher in the UK in the 1980s. monetarism. Today. and the situation was worsened by the rise of stagflation.[35] This era was greatly influenced by Keynesian economic stabilization policies. The postwar boom ended in the late 1960s and early 1970s. a broad array of new analytical tools in the social sciences were developed to explain the social and economic trends of the period. called "remarketized capitalism. combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development.[35] However.[49] Exceptionally high inflation combined with slow output growth. the state played an increasingly prominent role in the capitalistic system throughout much of the world. is no greater now than during earlier periods of capitalist trade.

followed by Anne Robert Jacques Turgot who opposed tariffs and customs duties and advocated free trade. However.[59] For instance.[52] It was necessary for Smith to be so forceful in his argument in favor of free markets because he had to overcome the popular mercantilist sentiment of the time period. [94][95] In years 1000–1820 world economy grew sixfold. such as the state. though it does not necessarily oppose the state's provision of a few basic public goods. schools and bridges that cannot be efficiently implemented by private entities. Adam Smith argued that the state has a role in providing roads. Smith's attack on mercantilism and his reasoning for "the system of natural liberty" in The Wealth of Nations (1776) are usually taken as the beginning of classical political economy.g. putting a toll). This argument was central. and argued that the supply and demand mechanism around land influenced short-term prices.[53] He criticized monopolies. tariffs.[57] Classical liberal thought has generally assumed a clear division between the economy and other realms of social activity. 9-fold per person. [55] He also argued that inflation is closely related to changes in quantity of money and credit and was a proponent of the law of diminishing returns. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system.[58] While economic liberalism favors markets unfettered by the government. This view was shared by David Ricardo. capacity utilization or standard of living.[56] The values of classical political economy are strongly associated with the classical liberal doctrine of minimal government intervention in the economy. [54] In The Principles of Political Economy and Taxation (1817). for example. it maintains that the state has a legitimate role in providing public goods. he developed the law of comparative advantage. and other state enforced restrictions of his time and believed that the market is the most fair and efficient arbitrator of resources. as measured by Gross Domestic Product (GDP). 50 % per person. i.Physiocrats' economic theory. Smith devised a set of concepts that remain strongly associated with capitalism today. His theories regarding the "invisible hand" are commonly misinterpreted to mean individual pursuit of self-interest unintentionally producing collective good for society. Richard Cantillon defined long-run equilibrium as the balance of flows of income. and allocate resources. This principle supports the economic case for free trade. second most important of the classical political economists and one of the most influential economists of modern times. in years 1820–1998 world economy grew 50-fold. which states that each additional unit of input yields less and less additional output. even if one of the trading partners is more efficient in every type of economic production. duties.e.. which explains why it is profitable for two parties to trade. In addition. canals. [96] In most capitalist economic . After capitalism had started to spread more widely. he preferred that these goods should be paid proportionally to their consumption (e. he advocated retaliatory tariffs to bring about free trade. to Adam Smith's advocacy of letting a free market control production and price. Ricardo was a supporter of Say's Law and held the view that full employment is the normal equilibrium for a competitive economy. and copyrights and patents to encourage innovation Advocacy for capitalism [edit]Economic growth Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth.

are coordinated. the United States. transactions in a market economy are voluntary. Australia and New Zealand. crippled capitalism.. Capitalism is not a utopia — it is entirely something of “this world”.e.e. which was poor in 1820.[100][101] [edit]Self-organization Austrian School economists have argued that capitalism can organize itself into a complex system without an external guidance or central planning mechanism. based on facts observable in “this world”. . and health care. Prices serve as a signal as to the urgent and unfilled wants of people. i. Canada.. laissez faire capitalism is a definite metaphysical possibility. but is a “mixed economy”: a mixture of freedom and controls.[102] Historically. or that it will not exist in the future. A pure laissez-faire capitalist society has never existed. has a pure capitalist society ever existed? No. does not mean it cannot exist. Friedman stated that centralized operations of economic activity is always accompanied by political repression.. and the wide diversity that voluntary activity permits is a fundamental threat to repressive political leaders and greatly diminish power to coerce.[97] The decrease in the number of hours worked per week and the decreased participation of children and the elderly in the workforce have been attributed to capitalism. In his view. but it is entirely practical theory. both of whom believed that capitalism is vital for freedom to survive and thrive. To their thinking. housing. whereas in the rest of the world the growth was only 5-fold per person. it is too good to be true. The fact that laissez faire capitalism has never existed. a hampered market economy. and the promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. i. Friedman's view was also shared by Friedrich Hayekand John Maynard Keynes. The closest any country has come to pure capitalism is 19th century America. the economy grew 19-fold per person even though these countries already had a higher starting level. Twentieth century America is not a pure capitalist country. Thus the activities of millions of people. A utopia is some ideal which cannot ever exist in reality.[98][99] Proponents also believe that a capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. [96] Proponents argue that increasing GDP (per capita) is empirically shown to bring about improved standards of living. i. and in Japan. this potential is much greater than in either traditional feudal or tribalsocieties or in socialist societies. clothing. to 31fold. Friedrich Hayek considered the phenomenon of selforganization as underpinning capitalism. [edit]Political freedom Milton Friedman stated that the economic freedom of capitalism is a requisite of political freedom which has been continuously echoed by others such as Andrew Brennan and Ronald Reagan.regions such as Europe.e. Capitalism is not utopian. each seeking his own interest. such as better availability of food.

Children working in factories was only a transitory stage between early feudalism and capitalism. Contrary to leftist rhetoric passing child labor laws in these countries will not solve the problem.. If life was so great before capitalism in the “country”. and misrepresented by the intellectuals in our universities? The intellectuals despise Capitalism because it is completely in opposition to their basic. Capitalism is the system of individualism. because to the extent that it is allowed to work. that children had to stop working in fields or factories. it always works in practice. before capitalism. In poor non-capitalist countries they are still working in fields and factories. Prior to working in factories. Individualism is not opposed to a man living in society. It was the accumulation capital by the industrialists that made the labor of parents more productive. and infant mortality did not go down. the intellectuals . why was infant mortality so high and population numbers considerably lower before capitalism? Answer: because life was not so great until Capitalism. Throughout history the parents of most families could not produce enough to support their families without having their children work also (such was the case of my father in India). maligned. but will only lead to mass starvation — which is why the “poor” themselves resist such laws (it is only to the benefit of the leftist “rich” “humanitarians” who cry out for them). Capitalism is the system of individual rights. philosophical principles. so long as he is free from the initiation of force by others. self-interest and happiness.Capitalism is the best — the ideal — theory. many of children (and their parents) used to die and starve.” CAPITALISM Why is capitalism so despised. as evidenced by the high infant mortality statistics before capitalism. i. a slave. The clearest evidence of this is population and infant mortality statistics: population did not go up. until the Industrial Revolution. Individualism is only opposed to man living in society as a non-individual amorphous member of a collective. Observe that is was not until families left the “country” and went into the “cities” that they were able to produce enough food to eat. than to live in a society where he is nothing more than a pawn ready to be sacrificed to the altar of the “public good.e. Individualism holds that it is much better for man to live on a deserted island. the intellectuals on all sides are for some form of collectivism.

or at least the victor of this war between Germany and Russia would be so weak as to be easily defeated by the U. However. and misery. their rights are violated by their own government.e.. In the Middle East America has a selfish interest: oil. on this issue.e. Whether America sends its young boys to die off in other countries. Capitalism is the moral system. Either way the country — America — is condemned.). (As for your views on Hitler. such as mutliculturalism. or whose existence they deny. of improving the situation of countries. i. it has no interest. In Kosovo. or not. In terms. a good argument can be made that America should have let the Nazis and the Soviets go at it. If the country does interfere it is called “Imperialist”. since it is the only system that allows man to be virtuous — to pursue the good — by leaving him free to act by the use of his reason. the intellectuals are steeped in mysticism and subjectivism. America has no obligation to overthrow such governments. Capitalism is is a social system for living in reality. No wonder the bulk of the intellectuals who infect today’s universities are against Capitalism — it represents the antithesis of everything they stand for. that is primarily a philosophical issue (those countries need a culture founded on individualism. How could they not be? Is capitalism for isolationism or imperialism? “Isolationist” is a smear term. This is Capitalism’s moral justification. as opposed to a culture founded on collectivism/racism). as the ideas it exports to other countries tend to be anti-American. used against countries who don’t wish to interfere in other countries. Isn’t capitalism immoral? No. America does have the moral right to overthrow the present government of Bosnia.are for altruism. Leftist ones. Sadly. should be solely based on America’s own self interest — and the interests of those who are risking their lives.. a reality which the intellectuals despise. self-sacrifice. i. Capitalism is pro-reason. like Bosnia. racist ideas that lead to global balkanization. as it is not a sovereign nation. as its citizens are not sovereign. Isn’t capitalism justified by the fact it serves the “public good”? . Freedom to act is a precondition of morality. so that the two great slave states of the 20th century would wipe each other out.S. America is intellectually bankrupt.

color. capitalism enshrines rational self-interest. Europeans saw the emergence of classical-liberal political theories and concepts of human rights. at least according to “common wisdom” now accepted in political circles. Yet capitalism did not arise in China’s structured environment. not by permission of others. its rules and principles were discovered. The very facets of medieval European life that today would be frowned on were necessary for the rise of capitalism. in the proper meaning of the term. and never violate them. in comparison. Capitalism is the system of laissez faire — the system of freedom — the system that frees man’s mind by allowing him to act by it — the source of all progress. The historical evidence to support this thesis is irrefutable.No. but by right. regardless of race. And with the rise of capitalism. laissezfaire results in a society where progress is the norm. and that government’s sole responsibility is to protect those rights. the equal rights of all individuals. Instead China. Capitalism is the only system that led to the freedom of slaves. not imposed. may live his own life for his own happiness. with a unifying government and legal system. as an end to himself. etc. though this is not its moral justification but is merely an effect of its cause: freeing the individual from the mediocrity of the collective. sex. and no common language. The centralized system of China. you are completely off the mark when you claim that to act in one’s own benefit. the end of feudalism. Isn’t capitalism opposed to progress? Capitalism is the only “progressive” system. it oversaw. The region was splintered among hundreds of local principalities with no unifying government. is evil. How does capitalism differ from statism? Only capitalism declares that each and every man. As David Landes writes in The Wealth and Poverty of Nations. no common currency. That capitalism serves the “public good” (properly defined as the sum of the good of all individuals) is true. and the standard of living continuously rises. It was amid the perceived political chaos of Europe that capitalism flourished. it is doubtful he would have considered Europe a likely candidate. No. If today’s typical political scientist had had to guess where a system of market capitalism would have arisen. Isn’t capitalism founded upon the evil of selfishness? Yes and no. As a secondary effect of allowing the creators and innovators of society freedom to create and produce. because they are inalienable. Yes. and thus short-circuited the discovery process. what the Chinese state “did not take. regulated and repressed. to live his own life as an end to himself.”[1] . It evolved because it was free to evolve. The Evolution of Capit alism A few centuries ago things looked pretty hopeless for Europe. would have topped the list. did not allow such freedom. that is to act selfishly.

They had to persuade them to come .” Raico writes. concentrating on his own wishes.[5] Landes elaborates: “European rulers and enterprising lords who sought to grow revenues . Germany. In every culture there always have been visionaries who see a potential for advancement and betterment. The Chinese empire encompassed the equivalent of a continent. And like most bureaucracies. . . These exemptions from material burdens and grants of economic privilege.”[7] . .”[3] Historian Ralph Raico says that Europe benefited because it was “radically decentralized” unlike China and India. The system became reinforcing—a sterile verge between interests and ideology. and this too was an essentially European pattern. but it is surely good for the spirit and popular initiatives. . people could move to a neighboring one. leaving no havens of creativity nearby. “Europe developed into a mosaic of kingdoms. Here the initiative came from below. had to attract participants by the grant of franchises. subordination. not social. often led to political concessions and self-government. Areas experimented with different systems. State subsidy and hence progress itself could be turned off like a faucet. moreover. Postrel writes “that reactionary ideals. in uncoordinated cooperation transforms and expands human potential. and while some retained the feudal top-down system of control. . by making deals. Would-be Chinese innovators had no outlet. .In The Future and Its Enemies. Because of this mosaic. and Italy were broken into hundreds of smaller political jurisdictions. or political. Even in its creative period. The difficulty in preventing such migration acted as a check on the power to tax. This may be bad news for certainty and conformity. The governing philosophy was one of order. Landes notes that “where authority is divided. Each one of them. “The first condition for the maximization of economic efficiency is the liberation of civil society with respect to the state . China’s dynamism was primarily technological. freedoms. And because Chinese invention had always occurred under state auspices. and privileges—in short. Liberation of Civil Society In The Origins of Capitalism Jean Baechler argues. city-states. Virginia Postrel talks about how much more advanced the great Chinese empire was than European culture. . . economic. ecclesiastical domains. and stasis. The only things that changed were the political policies. The citizen of a German principality could move to another German political jurisdiction without experiencing a major culture shock. . there were no private enterprises to provide money and encouragement once the government stopped supporting innovation. economic policies were localized. Implicit in it was a sense of rights and contract—the right to negotiate as well as petition—with gains to the freedom and security of economic activity. The expansion of capitalism owes its origins and raison d’être to political anarchy.”[2] More important than the regime’s hostility to innovation was its monopoly on power. dissent flourishes. “Instead of experiencing the hegemony of a universal empire” Raico writes.”[4] The great modern European nations like France. . principalities. the mandarinate developed a strong interest in protecting the status quo. This is known as the demonstration effect.”[6] The involuntary devolution of power in Europe encouraged the social evolution that Postrel discusses. If taxes and regulations in one kingdom became oppressive. others started freeing up the economy. technocratic administration and monopoly power converged to enforce stability at the cost of stagnation. Regions that followed more liberal policies prospered over those that didn’t. “The ‘demonstration effect’ that has been a constant element in European progress—and which could exist precisely because Europe was a decentralized system of competing jurisdictions—helped spread the liberal politics that brought prosperity to the towns that first ventured to experiment with them. the government was both highly bureaucratic and absolutist . Yet China shunned the dynamism of an evolving system. and other political entities. .

a founder of the British Fabian Society who later in life acknowledged the superiority of individualism and private property. .” Landes writes. although. Dissent in Europe did challenge traditional political arrangements and theological doctrines. Innovators came to fresh. D. P. fears this change. “The economic expansion of medieval Europe was thus promoted by a succession of organizational innovations and adaptations.”[12] According to Raico. The result was a new technological thinking that exploded into the Industrial Revolution. But it also led to a questioning of scientific and technological positions. Absolutist traditions of government were transmitted to the new society at the same time. that is often forgotten. In A General History of Socialism and Social Struggle Max Beer writes that these movements advocated “a modernized medieval order. . [which placed] egoism and self-interest before subordination. wrote. unlike China. Centralized power and a regulated economy are “conservative” means to prevent the dynamism and evolution of a free society. R. grew from the fusion of two tyrannical traditions of government—Orthodox absolutism and Tartar despotism. and the master worked beside the artisan. and intellectual freedom with a degree of prosperity that amounted to an early modern Wirtsehafiswunder”[13] Capitalism did not appear in Russia. . the reformers “could not accept ideas and demands and economic practices which were based on individual freedom .”[15] .spoke glowingly of the guild system of medieval Europe.” The demonstration effect took place in specific locations with specific policies. “Feudalism was socialism. . Often socialistic in the extreme. commonality and social solidarity. “most of them initiated from below and diffused by example. in the true sense of the word. the rule of law. it shared similar cultural and religious values with western Europe. A.”[11] He calls this “The Invention of Invention. often radical conclusions. “When pagan Russia entered the society of Christian civilization. .”[9] No wonder Walter Lippmann said that collectivism “is reactionary in the exact sense of the word. . Reaction Against Individu alism Social reform movements formed in response to individualism. And many observers have rightfully seen socialism as a “conservative” counterrevolution that attempted to preserve the feudal order.The conservative.”[14] Ward notes that “the total collapse of Roman authority” was the reason western Europe evolved toward liberalism while eastern Europe didn’t. bureaucracy remained intact . which began to be reformed in Muscovy after the interregnum of Tartar invasion. in an article for the New Encyclopedia of Social Reform. K. “the missionary task was accomplished by the monks and priests of Eastern Orthodoxy. approvingly notes that the guild era “was a period of supremacy of labor over capital. Holland “emerged itself as a decentralized polity. .”[8] W.” Thomas Davidson. Holland is one example. “In Byzantium .” Frightened by change. Bliss.” Barbara Ward writes in Faith and Freedom. a founding father of American socialism. a prominent economist who helped found the American Economic Association. the human mind was set free to ponder every aspect of human existence. He admitted. without a king or court—a ‘headless commonwealth’ that combined secure property rights. The truly radical movement of the time was economic individualism. It was as we have seen cruel—but it was with a just cruelty. . Seligman.” E. . But in the West the barbarians broke up the old order. religious toleration. But it covers a wide range of human activity. With the Reformation and the end of the Catholic monopoly on theology. The Russian state. trade and politics . Swart writes that “the Dutch Republic was unique in permitting an unprecedented degree of freedom in the fields of religion. “This was paternal. .W.”[10] We are accustomed to think of dissent in ideological or religious terms only. In the eyes of contemporaries it was this combination of freedom and economic predominance that constituted the true miracle of the Dutch Republic.

Listen. . or for the defense of previously won gains. Modern Day Capitalism: A Crisis. today’s form of capitalism. “When you buy Starbucks whether you realise it or not you are buying into something bigger than a cup of coffee. it’s what you are buying into” and then they describe it to you. economic or social situation gives it urgency from the bourgeois point of view and it is made feasible by the weakening of the resistance of the labor movement. you are buying into a coffee ethic. into struggles for transitional demands that could create a pre-revolutionary situation and objectively pose the question of power. -before this ’68 transformation of capitalism into. Renowned philosopher Slavoj Zizek investigates the surprising ethical implications of charitable giving: TRI Highlights: -I would like to start with the future of so-called cultural capitalism. is already included into it. ironically. the contradictory dynamics of which are shown in at least some of the West European countries by periodic recessions. a Tragedy and a Farce. The Evolution of Capitalism in Western Europe Against the world background of a continual rise in the colonial revolution. (e) The more than ever decisive role of the subjective factor in arriving at this result. ensuring that the farmers who grow the beans receive a fair price for their hard work. So that when you buy something it is your anti-consumerist duty to do something for others for environment and so on. Through our Starbucks Shared Plant Programme we purchase more fair trade coffee than any company in the world. [16] Thus.“Europe’s great good fortune lay in the fall of Rome and the weakness and division that ensured. the barbarians who invaded western Europe were unwittingly responsible for the development of capitalism.” Landes writes. -But I claim in today’s capitalism more and more the tendency is to bring the two dimensions together in one and the same cluster. as we usually call it.Starbucks Coffee: “It’s not just what you are buying. (c) The necessity for the working class to energetically oppose the more and more frequent attempts to reach a new level in integrating the labor movement into the bourgeois state. (d) The possibility of transforming economic struggles for immediate gains.” . and the temporary stabilization of capitalism in the imperialist countries due to the betrayal of the revolutionary upsurge of 1943-48 by the reformist and Stalinist leaderships and the possibility opened to capitalism of a new phase of economic growth in these countries. the evolution of capitalism in Western Europe during recent years has been dominated by: (a) An economic boom in which the motor forces have nevertheless begun to lose power and which has ended in a new economic situation. leading to attempts to install a “strong state” each time a sudden turn in the political. post modern caring for ecology and all that. more cultural capitalism. and then develop how the same thing applies also to economy in the narrower sense of the term. an ever deepening crisis in the Soviet bureaucracy. And we invest in an improved coffee growing practices and communities around the globe. (b) A prolonged crisis in classical bourgeois democracy.

therefore.-You see this is what I call cultural capitalism at its purest. You get all that. My god in an abstract sense of course it’s better than nothing. institutions have to be reconfigured and it has to be a global effort by the G20s something of that kind. TRI Highlights: -One genre is that it’s all about human frailty. act of egotist consumption and so on already includes the price for its opposite. seriously threatened.” But there’s a whole world of explanations that kind of say it’s the predatory instincts. But this is not a solution it is an aggravation of the difficulty. just and humane. that they are really any better. towards a new social order that would allow us to live within a system that could be responsible. of course we should help the children. “and you can’t do anything about that.” Radical sociologist David Harvey asks if it is time to look beyond capitalism. -Charity degrades and demoralises. it’s the instincts.” -But the remedies do not cure the disease they merely prolong it. . One act of consumerism but included in it you pay for being redeemed of it for doing something for the environment and so on and so on. I don’t think you really believe that those apples which cost double than the good old genetically modified apples which we all like. the shadow banking system innovated outside of their purview etc. no? That’s all I’m saying. -Oscar Wilde who provided the best formulation against this logic of charity: “It is much more easy to have sympathy with suffering than it is to have sympathy with thought. etc and. You don’t just buy a coffee you buy in the very consumerist act – you buy your redemption from being only a consumerist. I claim we are cynics they are sceptics. But in the long term you know as Oscar Wilde would have said. welfare. as it were. Or in the case of a very advanced school by amusing the poor. it’s the delusions of investors. -So my point is that this very interesting short circuit where the very. But you know it makes you feel warm that I’m doing something for our mother earth. for instance. -The third genre is to say everybody was obsessed with a false theory. etc. you know he’s repairing with the right hand what he ruined with the left hand. I see this gradually but. -I don’t think that in any moment in human history did such a relatively large percentage of population live in such relative freedom. and the greed and all the rest of it. But there is a paradox. how should I put it.4?)) and believed in the efficiency of markets and it’s time we actually got back to something like Keynes or we took seriously Hyman Minsky’s theory inherent instability of financial activities. -The proper aim is to try and reconstruct society on such a basis that poverty will be impossible and the altruistic virtues have really prevented the carrying out of this aim. It is immoral to use private property in order to alleviate the horrible evils that result from the institution of private property. So we look at the institutional level and say that has failed and that has to be reconfigured. regulators were asleep at the switch. by keeping the poor alive. they read too much ((0:01:20. Alan Greenspan took refuge in the fact “It’s human nature” he said. -You know what I’m saying? I’m not against charity. it’s horrible to see a child whose life is ruined because of an operation which costs twenty dollars. “If you just operate the child then they live a little bit better but in the same situation which produced them. just let’s be aware that there is an element of hypocrisy there. -like the almost absurd example of this is so-called Toms Shoes – an American company who’s formula is one for one. nonetheless. -The second genre is that there’s institutional failures. the mastery. -And again this logic I think is today almost universalised like let’s be frank – when you go to a store probably you prefer buying organic apples. indeed the remedies are part of the disease. For example. that in a way you know like my argument and I don’t doubt people who met him and told me that Soros is an honest guy. I’m doing something for our planet and so on and so on. Why? Look deep into yourself. They try to solve the problem of poverty. They claim for every pair of shoes you buy with them they give a pair of shoes to some African nation and so on and so on so that you know one for one. security and so on.

-The problem back in the 1970s was excessive power of labour in relationship to capital. -And it’s interesting you had a finance crisis in the financial system. It’s been promoted since the 1930s. -So there are all of these ways and all of them have a certain truth. “What!” And then it went on to talk about the politics of denial and all the rest of it so I thought well systemic risk I can translate it into the Marxian thing. It’s even steadily fallen in China of all places. the problem of effective demand by actually pumping up the credit economy. Now we don’t hear that much in the United States but if you were in Germany and France there are many people there who would say this is an Anglo Saxon disease and it’s nothing to do with us. it said. you’ve sort of half solved that but at the expense of a sovereign debt crisis. It’s only 22% in Switzerland. It was done by off shoring. the share of wage as a national income right throughout the OECD countries has steadily fallen.6?)) capital. -Now how did that happen? Well we’ve been since the 1970s in a phase of what we call wage repression. which is the root of the problem. no . That. power and means of production. And maybe I should write a thing about the internal contradictions of capital accumulation and try to figure out the role of crisis in the whole history of capitalism and what’s specific and special about the crisis this time around. it was done by Thatcher and Regan and it was done by neo-liberal doctrine. “Well many dedicated people. it has to turn it into a barrier which it then circumvents or transcends. it’s defects in the Greek character. spend their lives working on aspects of this thing very. you create acommodity which you then sell for the original money plus a profit. it was done all kinds of different ways. So we’ll overcome. And financial innovation has the effect of also empowering the financiers. very important that capitalism never solves its crisis problems. the US fascination with home ownership which is supposedly a deep cultural value. very explicitly in the 1930 it was built up because the theory was that debt encumbered homeowners don’t go on strike. -And out of this comes a theory which is very. “Well it’s the Greek character. so 67%/68% of US households are home owners. So that there are less and less being paid out in wages. And the answer was well get out your credit cards. smart. The way the German press is saying. so if you diminish wages then you’ve got a problem with where’s your demand going to come from. -a typical circulation process of accumulation goes like this. But by 1985 or ’86 the labour question had essentially been solved ((0:05:35. the way out of a crisis last time was to discipline labour. you go into the market and you buy labour. you’re talking about the internal contradictions of capital accumulation. -And it was absolutely astonishing.” -For instance. And a vast amount of that debt. Nobody in this instance is saying it’s ever anything to do with excessive power of labour. -So there was a way of which it became cultural and you can see that by the way in which this whole Greek thing is being handled. Well wages turn out to be also the money which buys goods. And American households and British households have all roughly tripled their debt over the last 20/30 years. -And then there’s the kind of notion that it’s a failure of policy and that policy has actually intervened. it moves them around geographically. very seriously.-The next genre is it has cultural origins. Of course it’s a cultural value in the United States of being supported by the mortgage interest tax deduction which is a huge subsidy. of course. and the excessive power of the financiers can sometimes… they do get greedy. -So the whole history of capitalism has been about financial innovation. -capital can’t abide a limit. but the one thing we missed was systemic risk” and you say. If anything it’s the excessive power of capital and in particular the excessive power of finance capital. has been within the housing market. it had access to all the world’s labour supplies. that wages have remained stagnant. if you like. and you put that then to work with a given technology and organisational form. Now you then take part of the profit and you recapitalise it into an expansion for very interesting reasons. You start with some money. and we know how that was done. intelligent. we’ll give everybody credit cards. therefore. nobody in this particular instance has cited greedy unions as the root of the crisis.

You should know it’s crap and say it is. Any sensible person right now would join an anti-capitalist http://www. REFERENCES http://en.php http://www.wikipedia. Profits in manufacturing were coming down like this. the racking up of wealth you would have thought the crisis would have stopped that.question about it. and notice it’s the continuation of all sorts of negative aspects.htm http://www. For instance.thefreemanonline. -I think I know what the nature of the problem is. and unless we’re prepared to have a very broad based discussion that gets away from the normal ((0:10:11.historyworld. -You’ve actually screwed industry in order to keep financiers happy.marxists. Actually more billionaires emerged in India last year than ever – they doubled last http://www. And you could see the imbalance. it seems to me those of us who are academics and seriously involved in the http://www. but they’re now hauling in three billion.asp? historyid=aa49#ixzz1rdCOBhph . And we have a you get in the political campaign and everything’s going to be okay here next year if you vote for me – it’s crap. -What happened was the leading hedge fund owners got personal remunerations of three billion dollars each in one year! Now I thought it was obscene and insane a few years ago when they got two hundred and fifty million. to actually change our mode of thinking.worldsocialism. And if you look at financial profits in the United States they were soaring after 1990. they were going up like this.thefreemanonline. And you have to because otherwise we’re going to have the http://www. The wealth of the rich – and I just read something this morning – in this country has accelerated just last year.