Capitalism(ECON)
So What Exactly Is Capitalism?
|
Adam Smith
![Picture](/uploads/7/8/0/3/78033980/editor/adam-smith-2.jpg?1485481290)
- Adam Smith was considered to be the father of capitalism and heavily influenced economic thought.
- Used a pin factory to explain the new way of manufacturing.
- It involved him saying "One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head"
- What he was saying was how now in this new era of manufacturing several people are assigned one aspect to do and keep doing the same thing over and over again to increase efficiency.
The Motivating Factors Behind Capitalism
![Picture](/uploads/7/8/0/3/78033980/published/smith-map.jpg?1485485889)
- Some of the motivating factors behind capitalism was the amount of wealth that could be gained by it, how you could make or invent anything you wanted, and the higher production rates.
- This idea of a free market sparked many new ideas like the cotton gin, the steam engine, and later on the automobile.
- These ideas would then be mass produced and would gain lots of wealth.
- This would motivate people to buy stocks of corporations so that they could also benefit off of others success.
- Then if the corporation fell they wouldn't lose all their money, so it was a safe way to invest.
- Another motivating factor behind capitalism is that everyone has a chance at making it big, no matter what social class you are born into.
- Capitalism also allows for the economy to grow exponentially which means that society has a whole will benefit from this, an example of this is the arrival of the middle class.
Synthesis
Capitalism is always about businesses trying to make as much money as possible. This means that there will be a lot of competition between businesses and corporations on trying to one up each other. Capitalism also allows the people to be in charge of how much money they really want to make. They have many options in moving up in their social class and becoming a successful businessman or a CEO of a corporation. They can start rock bottom and if they play it smart can make it up to the top depending on how they play the system. Compared to something like the caste system in classical India to were you were born into your social class. If you were a son of a farmer you and your family would always be a farmer. Their was no way of moving up in society.
Self Created Enhancement
Bibliography
"The Culture of Capitalism | Harvard Online Learning Portal." Harvard Online Learning. N.p., n.d. Web. 26 Jan. 2017.
James, Patrick. "Watch As Capitalism Spreads, Through The Writings Of Adam Smith." Co.Exist. N.p., 13 Nov. 2014. Web. 26 Jan. 2017.
"Chop YouTube Videos." TubeChop. N.p., n.d. Web. 26 Jan. 2017.
"Who Is Adam Smith? Everything You Need to Know." Childhood, Life Achievements & Timeline. N.p., n.d. Web. 26 Jan. 2017.
Bentley, Jerry H. "Traditions and Encounters: A Global Perspective on the Past / Edition 2." Barnes & Noble. N.p., n.d. Web. 26 Jan. 2017.
James, Patrick. "Watch As Capitalism Spreads, Through The Writings Of Adam Smith." Co.Exist. N.p., 13 Nov. 2014. Web. 26 Jan. 2017.
"Chop YouTube Videos." TubeChop. N.p., n.d. Web. 26 Jan. 2017.
"Who Is Adam Smith? Everything You Need to Know." Childhood, Life Achievements & Timeline. N.p., n.d. Web. 26 Jan. 2017.
Bentley, Jerry H. "Traditions and Encounters: A Global Perspective on the Past / Edition 2." Barnes & Noble. N.p., n.d. Web. 26 Jan. 2017.