Capitalism as a form of economic and social organization

Capitalism as a form of economic and social organization

The capitalism is a system of economic and social organization in which ownership of the means of production belongs to the capitalists, who have the capital, and is separated from the workers, who only have the workforce.

It is characterized by economic freedom and the usufruct of private property. It does not have a founder as such, but is based on those relationships between companies and society itself. However, it is true that the most prominent theorists are Adam Smith and John Locke.

One of the basic needs of capitalism is existence of a free market. This serves both to increase the profits of companies and investors, and to regulate the system. The basic principle that governs capitalism is that of supply and demand between producers and consumers. Companies have freedom of production and sale, to which only a minimal restriction is applied by the public powers. In addition, this policy of non-intervention is joined by the non-participation of the state in economic tasks, which are left in the hands of the private sector.

In the capitalism, society is based on rational organization of work (division of labour), money and the utility of production resources. To guarantee an expansionist operation, there is a social division into different classes. This occurs based on the distribution of income: those with more responsibility get a higher salary.

The history of this economic system is relatively recent, since although the 14th century urban and cultural revolution was quite relevant, in Western Europe the origin of a certain capitalism does not begin to be seen until the Renaissance. It was from the seventeenth century, when certain legal molds typical of capitalism appeared (big companies) and finally an acceleration of technological progress (between 1760 and 1800, in Great Britain). All this would end up decisively leading to the implementation of the capitalism in Western Europe.

As with others systems of social and economic organization (As the Communism), has several doctrines and evolutions that have occurred throughout history. One of the most prominent is the approach of economic liberalism. There is also a sieved capitalism, which would be controlled by the state, very similar to Marxist socialism. On capitalism, own Karl Marx affirmed that it is a regime that rests in "the systematic search for profit thanks to the exploitation of workers by the owners of the means of production and exchange”.

Over the years, new terms have emerged, such as “Neocapitalism”. This concept gives name to contemporary forms of capitalism, that is, to the atomicity of the production of the pioneers, which is characterized by a large number of companies that give rise to a multitude of decision centers.

This has created a "large-unit capitalism”Which puts the management of the most powerful companies in the hands of managers whose power no longer emanates solely from capital ownership, but from other factors (preparation, charisma, treatment, etc.). On the other hand, they have developed multinational companies For some years now, the state has increasingly intervened in the economy through financial participation and indicative planning.

Passionate about History, he has a degree in Journalism and Audiovisual Communication. Since he was little he loved History and ended up exploring the 18th, 19th and 20th centuries above all.

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