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What is capitalism? Its features, merits and demerits.

What is capitalism? Its features, merits and demerits.
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  • Encyclopedia
  • 24 May 2022
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Adam Smith, the father of capitalism, wrote in his book "The Wealth of Nations" in 1976 that capitalism should never have an effect on the country's economy. That is to say, a kind of social system where the economic elements of the society are in the hands of a few industrialists or capitalists. On the other hand, the majority of the working class of the society is forced to pay labor to the capitalists in exchange for the minimum wage for subsistence.

 

As a result, the amount of labor paid is never equal to the wages received. The quoted value is created from the extra labor, which is the main source of capital for the industrialists or capitalists. Gradually, the distance between the majority working class and the capitalists increased. As a result, the production system gradually became more violent. Workers' dissatisfaction culminates. Industrial infrastructure often collapses due to disputes between owners and workers.

 

However, industrialists or capitalists compete with each other in the production system in the hope of making more profit. Due to this conflicting industrial-centered economic system was formed.

 

The essence of this economy is that only a person in society will have the full right to own the money he has earned. Under the provisions of the State Rules, a person can invest capital and wealth freely by investing his / her talents and money in various fields and ways of his / her choice.

 

The term capitalism is synonymous with selfishness, exploitation, social inequality, and punishment. Due to this doctrine, a discriminatory social condition prevails in society. The capitalist community constantly strives to usurp the labor and money of the workers of the society or the low-income community in the hope of gaining more capital or money. As a result, certain sections of the society are in the hands of the minority capitalists or rich people who control the industries, factories, businesses, co-operatives, etc. Therefore, welfare efforts in the state are naturally based on their own interests, and the money earned from various state elements is spent on their own interests. 

 

The main goal of capitalism is to chase profit. In fact, behind this doctrine lies the desire for money.

 

 

Characteristics of Capitalism

The most important features of capitalism are -

Independent labor:

‘Independent Labor’ is an important element in capitalism. Capitalism stands on labor. Labor is considered a commodity in this doctrine. According to Weber, labor is the main condition of human freedom. That is, according to employment and wages, people sell their work and sell their labor for a fee.

People buy necessities from the sale of labor. In this case, his capital is the sum of time, energy, wages, and attention.

 

Ownership:

The main purpose of capitalism is to protect and establish personal interests. Individual ownership of the necessities of personal life, such as land, houses, furniture, vehicles, factories, etc., is well established.

 

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