How Capitalism Works
[2023-12-14 17:00:16]
Unlike capitalism centered on production, mercantilism develops mainly on trade. The core of Mercantilism is an easy way to sell things, not the price you pay. It is based on the concept of benefits arising from people's liquidity.
Mercantilism is prospering in a society organized by ancient Rome and the non localization of the Middle East. When most people in the world are still exchanging items, merchants in these cultures move items from one place to another.
There are abundant things like pottery clay and wheat in that area, but in remote towns, merchants bring these items to a town where higher prices are available. This kind of economic liquidity is possible due to the relative peace and order of these developed societies.
The decline of the Roman Empire in the fifth century CE also meant the decline of massive Mercantilism in Europe. However, Mercantilism continues to prosper in the Arab region. The Arabs were mainly Islamists, because the goods were profitable along the Middle East trade route between Egypt, Persia and later the Roman Empire and the Ottoman Empire. The rapid spread of Muslims in the 1970s brought mercantilism practices to parts of Africa, Asia and Southern Europe. From Spain and Portugal, Mercantilism spread to other parts of Europe and restored the commercial economy in the 14th century. In the next 500 years, Mercantilism is what we now call capitalism.
In the 19th century, capitalism was the dominant economic system of the world's most established countries. Immediately after capitalism became the most popular economic system, it became one of the most despised institutions. In the next section we will see why this economic principle evokes this passionate view.
In the capitalist economic system, the master of production is an individual, the beneficiary of production is first and foremost the individual, and the second is the society.
In economic systems of socialism or communism, producers are states or societies, and benefactors are societies.
In the fascist economic system, producers are state, the beneficiaries of production are primarily nations, and secondly society.
The centrality of capitalist accumulation also forces the state to undertake functions not present in other class societies, which help capitalists understand the value of their products. Given how capitalism works, capitalists need only more direct political aid than feudal aristocrats and ancient slaveowners to enrich them. They need to represent their national plan - they got it. Although their ideology is almost invisible, the plan covers everything from investment, financing, research, worker training, purchase to sale of finished goods. The vast majority of our taxes, trade, labor, and monetary policy (including law and its management) are within the capitalist plan. Political systems and practices that are useful for capitalist interests in these ways are an important part of the capitalist country.
Capitalist classes accumulate capital by utilizing wage labor. Of course, a detailed explanation of how capitalism functions (and how it fails) is beyond the scope of this article, but the essence of exploitation is only the wage or wage of a worker as a class It means that you can receive only a part. The value of the product they produce. From the social position as the owner of the production facility, the other values they produce are only occupied by capitalists.
Karl Marx believes that capitalism is a society divided into two categories: the working class, the producers of all values, the possession and employment of the class, and the surplus value of the exploiters. For Marx, the fundamental fact of capitalism is a class struggle between the working class and the wage class, not surplus value. Think about the classical Greek and Roman society in which slavery played a relatively large role; but our evidence suggests that the role of simple slavery in early civilizations is very different.