3. CAPITALISM: ONE KIND OF ECONOMY
“The economy” is simply where people work to produce the things we need
and want.
There are different ways to organize that work. Capitalism is just one of them.
Capitalism currently dominates the world economy. However, the term
capitalism is not commonly used by neoclassical economists.
4. CAPITALISM: ONE KIND OF ECONOMY
If we analyze the human history as a 24-hour
day. Then Capitalism only existed for 2 minutes.
Instead, they refer capitalism as ‘the economy’ pretending that there is only
one kind of economy. Which is wrong!
5. CAPITALISM: ONE KIND OF ECONOMY
Hence, we should not understand the
‘Economy’ & ‘Capitalism’ as identical.
6. WHAT IS CAPITALISM?
The two key features which makes a capitalist economy are
1. PRODUCTION FOR PROFIT - Most production of goods and services is
undertaken by privately-owned companies, which produce and sell their
output in hopes of making a profit.
2. WAGE LABOUR - Most work in the economy is performed by people
who do not own their company or their output, but are hired by
someone else to work in return for a money wage or salary.
7. WHAT IS CAPITALISM?
THESE ARE OFTEN TERMED AS ‘TWIN FEATURES’
An economy in which private, profit-seeking companies undertake
most production, and in which wage-earning employees do most of
the work, is a capitalist economy.
8. WHAT IS CAPITALISM?
Any economy driven by these twin features tend to replicate the
following trends & patterns-
1. Fierce competition between private companies.
2. Innovation.
3. Tendency to growth.
4. Deep Inequality.
5. Conflict of interest between owners & workers.
6. Unstable Economic cycles.
9. CAPITALISM & MARKET
‘Market economy’ is an economic system in which the decisions
regarding investment, production and distribution are guided by the
price signals created by the forces of supply and demand.
Markets also existed in pre-capitalist economies. E.g. where producers
could sell excess supplies of agricultural goods or exotic commodities
when required.
A market is simply a “place” where various buyers and sellers meet to
bargain over price and agree on sales of a good, a service, or an asset.
10. CAPITALISM & MARKET
Capitalism is not a “market economy.” Capitalism is a system in which
most production occurs for private profit, and most work is performed
by wage labor.
Neoclassical economists pretends that capitalism is just a system of
“markets” & blurs the real power relationships, and the often-violent
historical processes, which explain the economic system we actually
live in.
12. Let us know about
FADS
1. Appears suddenly
2. Enormously popular
3. Disappears suddenly
13. FADS IN CAPITALISM
What is FAD? Something, especially which is short-lived.
1. The “post-industrial” economy
2. The “information” economy
3. The “shareholder” economy
15. CONCLUSION
We think it’s pretty safe deal that human beings will eventually
find better ways to organize work in future– maybe sooner,
maybe later. It’s almost inconceivable that the major features of
what we call “capitalism” will exist for the rest of human history.
16. CONCLUSION
Unless, of course, we drive ourselves to extinction in the near
future through war, pollution, or other self-inflicted injuries.
