Capitalism

Capitalism: Meaning and its impact on society

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What is Capitalism? Capitalism is the name of a type of ideology that favors economic benefits over humanity and socialism. In capitalism, the emphasis is on getting money more than emotions. It was inspired by industrial and technological developments.

Capitalism was born in America. America was a country that adopted capitalist ideology as opposed to communist ideology and went to its extreme end.

Capitalism was born during the Cold War era. The Cold War is also seen and understood as a battle between capitalism and communism.

It is concerned with economic activities. In this, any country that is supportive of capitalism often gives importance to industrial and technological development.

Recognizing the importance of capital, the capitalist class emphasizes only economic development. Adam Smith, in his famous book The Wealth of Nations, has presented his commentary on the subject, acknowledging the importance of economic conditions.

Capitalism meaning

Capitalism refers to a process of promoting the industrial revolution and spending national money on technological and mechanical development.

In this, more emphasis is laid on economic and industrial development than social development. In capitalism, a nation makes economic treaties with other countries for economic development so that they can become financially strong.

It is an ideology that every country wants to adopt, but it matters a lot whether the condition of that country is in line with the capitalist ideology or not? Because that is what determines success and failure.

Derived fromCapital (a late Latin word meaning “head”)
MeaningHead of cattle
Firstly used byLouis Blanc (French socialist) in 1850
Developed byAdam Smith (The Father of Capitalism)
Focuses onPrivate ownership and Industrial development

Capitalism vs Communism

The policies and ideas of capitalism and communism are completely different from each other, communism has always considered capitalism as a means of exploitation.

According to the supporters of communism, the rights of workers and citizens are violated and exploited by capitalism.

It has exposed mechanization, which has rendered millions of workers unemployed and caused epidemics like hunger.

According to them, it acts as an obstacle in social activities.

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Where the purpose of capitalism is to earn an economic profit, communism emphasizes humanity, social and cultural development more than economic profit.

Where communism is concerned with social activities, capitalism is the product of mechanization/economic activities. Capitalism and communism differ from each other on the basis of their respective ideologies, policies and actions.

Both have their own ideology which separates them from each other and both the ideologies have their own moral-values ​​and their own aims and goals.

Where communism pays attention to all aspects of the whole world, capitalism ideology is considered self-centered, its aim is only to earn more and more money and get profit.

Characteristics

  • Capitalism is concerned with economic activities.
  • It emphasizes on industrial and technological development and it is considered a product of mechanization.
  • It is an economic system that is also known as money or value system.
  • The emphasis on division of labor and the development of machines instead of workers is a form of capitalist ideology.
  • It is the thinking in which a nation emphasizes the development of capital more than the development of society.

It is an economy, in which all aspects of the economy are kept in order and the capitalist class, often includes those classes who formulate their policies with a plan to earn maximum profit from the capital.

Industrialization has played an important role in the formation of capitalism. Looking at the development of industrialization in modern times, we can say that the present world system is moving towards capitalism. It is a system in which the policy orientation of each country lies in the middle of economic activities.

Is capitalism bad or good?

The inclination of any nation towards capitalism definitely reflects the state of its development, but the capitalist ideology or ideas are not according to the circumstances of every society, we can see the example of this in the period of the cold war, despite the weak economic condition of Russia, It used to buy weapons and other materials from other countries.

Due to which all the money of its treasury was spent on it, and because of this wrong decision, its social, economic and educational system got completely shattered.

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Conclusion

We know, industrial and technological development is very important for any nation, but in view of the present circumstances, it is very necessary that this policy should be followed only when the economic condition of that nation is already strong enough, first of all, the countries should be internal There is a great need to develop.

In this article, you learned the capitalism, its meaning, and its major impacts on different-different circumstances with an example, If you have found this knowledge informative please let us know about it in the comment box and do share it with your family and friends also.

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