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HYUN CHUNG

CAPITALISM
PROJECT 2: SOCIAL INSTITUTION

Definition of Capitalism
An economic system is based on private
property, in which profit-seeking
individuals, companies, and corporations
compete in the marketplace.

History of Capitalism
The current capitalism existed from the
Middle Ages and grew through the
Industrial Revolution.
The basic principles were laid by Adam
Smith in 1776.
Stock broking in the 17th century
encouraged more capitalist society.

Views of Capitalism
People can say that capitalism is good
because of the economic freedom that
people can have.
Capitalism also allows economic growth
within the nation and the world.
Capitalism has efficiency on producing
goods that are demanded.

Views of Capitalism
People can say that capitalism is bad
because of the monopoly power.
Monopoly power is a single business
taking control of a market.
Inheritance makes inequality between
people in different classes.
Inequality divides the social classes.

Views of Capitalism
Socialism and other forms of economys
views can be different.
Socialism and communism want equality
for all, and therefore, the state owns the
means of production.

Evolution of Capitalism
Capitalism has caused evolutions of
economic system and the political system.
Problems in the history such as the Great
Depression has let the political system
evolve to free the policies.

Causes of Changes
An economic system developed from
searching for a better system that people
can live under.
It has a record in Europe that people had
to invest their profit on something, and
this was used for industrialization of
Europe.

Stability of Capitalism
The biggest stable part of capitalism is that

there is an economic freedom and freedom to


own a property.
The freedom has not changed, although, there

were some restrictions during the 20th century.


This freedom lets capitalism correlate with

democracy.

Improvements for Capitalism


For capitalism to improve, the first thing
that has to change is the rich people
getting richer and the poor people getting
poorer.
The inheritance causes social division as
mentioned before, which causes social
conflicts among the people.

Improvements for Capitalism

How to Improve Capitalism


https://www.youtube.com/watch?
v=YOaJe68C-bU

Roles of Capitalism
Government Controls and keeps the
policies; provide goods and services
Owners Owners of a business usually
owns the workers and the profit
Workers Workers work under the owner
for their profits

Conflicts of Capitalism
Capitalism unfairly favors the rich who has
the control of the businesses, and they can
unfairly perpetrate the system, ignoring
the workers.
We have a huge gap between the high
class and the people in need due to the
destruction of middle class.

Functionalist Theory
Capitalism forms a stable economy system
because it offers everyone a chance to
work hard and get more achievements.
If everyone works steadily, the economy
will circulate in a great way and everyone
will earn profit.

References
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<http://thismatter.com/economics/economic-systems.htm>.
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<http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=aa49>.
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'Underground Economy'" Study.com. N.p., n.d. Web. 25 July 2016.
<http://study.com/academy/lesson/capitalism-vs-socialism-differences-advantagesdisadvantages-the-underground-economy.html>.
Pettinger, Tejvan. "Pros and Cons of Capitalism." Economics Help. N.p., 20 Mar. 2013. Web. 25
July 2016. <http://www.economicshelp.org/blog/5002/economics/pros-and-cons-ofcapitalism/>.
Reich, Robert. "The Answer Isn't Socialism; It's Capitalism That Better Spreads the Benefits of the
Productivity Revolution." The Huffington Post. TheHuffingtonPost.com, 6 July 2012. Web. 25
July 2016. <http://www.huffingtonpost.com/robert-reich/the-answer-isntsocialism_b_1491243.html>.
"Revealing Histories: Remembering Slavery." The Rise of Capitalism and the Development of
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Ross, Sean. "What Role Does the Government Play in Capitalism? | Investopedia." Investopedia.
N.p., 06 Apr. 2015. Web. 25 July 2016.
<http://www.investopedia.com/ask/answers/040615/what-role-does-government-playcapitalism.asp>.
Schooloflifechannel. "How to Improve Capitalism." YouTube. YouTube, 12 Jan. 2015. Web. 25 July
2016. <https://www.youtube.com/watch?v=YOaJe68C-bU>.