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Liberalism and capitalism

                                                                                  Liberalism and capitalism




                                                                                                    Capitalism is presented as a
                                                                                                     system in which the means
                                                                                                    of production are owned by
                                                       Principles of liberalism
                                                                                                      bourgeoisie and workers
                                                                                                      without property work in
                                                                                                         exchange for wages




The aims of the Economy     The prices are adjusted                                                 This poor planning and over-
are the personal interest                                The state mustn´t intervene
                             according to the law of                                                production an economic crisis
 and the maximum profit                                        in the economy
                               supply and demand                                                    is produced in a cyclical way
Banks and finances
                        Banks( very important
                           agent) acted as
                           intermediaries




   They helped savers                           Lent money and paid
invest their savings and                         capital letters and
industrialists get capital                              loans
STOCKS and money, money

The money needed couldn´t be invested
by only one person

    This is the cause of the aparition of
    public corporation (Sociedad anónima)

        These corporation gave the money in
        pieces called stocks

            Every stock can be sold or bought by
            private businessmen in the stock market
The second Industrial revolution
     When did it happen ?

     It came about in the late 19th century

      Where did it happen ?

      Appeared other industrial power such as Germany and USA

      What Kind of industries are very important ?

        1-The electrical industry in USA which is pioneered by
        Thomas A. Edison and G. Westinghouse.
        2-Mass production of consumer goods also developed at
        this time due to mechanizing the manufacture of food and
        drink, clothing and transport
        3-The entertainment industry (cinema, radio, phones...)
Other important industries
The chemical industries ; It
    produces industrial                                    The petroleum industry ; It
 chemicals. It is the center     The electrical power       is involved in the global
    of the modern world        industry : It provides for processes of exploration ,
 economy It converted raw         the production and        refining ,transporting and
 material (oil , metal...) in delivery of electrical power          marketing .
  other products such as
        polypropylene
Changes in a new industrial organization
 Internal combustion engine ;were developed before the 19th century, their use was
 hindered until mid 1850s

 Taylorism                                                means a manufacturing chain
 which has its production divided into highly specialized tasks and includes the use of
 advanced machinery. It was applied in the USA in the Ford car factory


 Cartel Agreements among companies or countries (OPEP)




 The Trust : Companies mergers ( fusiones)




 The holding company ; Financial group that owns most of the stock in a group of companies and
 banks




 Monopoly It is the exclusive right of company to market a product.

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Industrial capitalism

  • 1. Liberalism and capitalism Liberalism and capitalism Capitalism is presented as a system in which the means of production are owned by Principles of liberalism bourgeoisie and workers without property work in exchange for wages The aims of the Economy The prices are adjusted This poor planning and over- are the personal interest The state mustn´t intervene according to the law of production an economic crisis and the maximum profit in the economy supply and demand is produced in a cyclical way
  • 2. Banks and finances Banks( very important agent) acted as intermediaries They helped savers Lent money and paid invest their savings and capital letters and industrialists get capital loans
  • 3. STOCKS and money, money The money needed couldn´t be invested by only one person This is the cause of the aparition of public corporation (Sociedad anónima) These corporation gave the money in pieces called stocks Every stock can be sold or bought by private businessmen in the stock market
  • 4. The second Industrial revolution When did it happen ? It came about in the late 19th century Where did it happen ? Appeared other industrial power such as Germany and USA What Kind of industries are very important ? 1-The electrical industry in USA which is pioneered by Thomas A. Edison and G. Westinghouse. 2-Mass production of consumer goods also developed at this time due to mechanizing the manufacture of food and drink, clothing and transport 3-The entertainment industry (cinema, radio, phones...)
  • 5. Other important industries The chemical industries ; It produces industrial The petroleum industry ; It chemicals. It is the center The electrical power is involved in the global of the modern world industry : It provides for processes of exploration , economy It converted raw the production and refining ,transporting and material (oil , metal...) in delivery of electrical power marketing . other products such as polypropylene
  • 6. Changes in a new industrial organization Internal combustion engine ;were developed before the 19th century, their use was hindered until mid 1850s Taylorism means a manufacturing chain which has its production divided into highly specialized tasks and includes the use of advanced machinery. It was applied in the USA in the Ford car factory Cartel Agreements among companies or countries (OPEP) The Trust : Companies mergers ( fusiones) The holding company ; Financial group that owns most of the stock in a group of companies and banks Monopoly It is the exclusive right of company to market a product.