{"id":1092,"date":"2021-04-27T19:02:50","date_gmt":"2021-04-27T19:02:50","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/what-is\/capitalism\/"},"modified":"2021-04-27T19:02:50","modified_gmt":"2021-04-27T19:02:50","slug":"capitalism","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/what-is\/capitalism\/","title":{"rendered":"Capitalism"},"content":{"rendered":"
\n

What is capitalism?<\/h2>\n

Capitalism is a economic system that defends the freedom of the market and that the means of production are privately owned.<\/strong><\/p>\n

In this way, it uses the market as a mechanism to efficiently use resources and have a capital that generates more income.<\/strong><\/p>\n

As a result, it is possible to affirm that the capitalism is the opposite of socialism<\/strong>It is based on the fact that productive resources and industries belong to individuals and not to government organizations.<\/p>\n

Characteristics of capitalism<\/h2>\n

The main characteristics of capitalism are the following:<\/p>\n

    \n
  • It is governed by market freedom,<\/strong> In other words, it uses free trade to manufacture, buy and sell any type of goods and services, especially those most in demand by society.<\/li>\n
  • Owns a minimal government intervention and oversight, <\/strong>since government entities manage national defense, so that private property is respected and all contracts are fulfilled, but they only intervene as regulatory bodies.<\/li>\n
  • Since mostly private properties are developed, capitalism earns the respect of the industry.<\/strong><\/li>\n
  • Has free stipulation of prices<\/strong> so that resources and their distribution among individuals is freely assigned.<\/li>\n
  • Presents complete freedom<\/strong> in terms of hiring, legality and the financial resources that can be obtained.<\/li>\n
  • Promote the entrepreneurial spirit.<\/strong><\/li>\n
  • Chase the economic growth.<\/strong><\/li>\n<\/ul>\n

    Types of capitalism<\/h2>\n

    It is possible to classify capitalism as follows:<\/p>\n

    \"Types<\/p>\n

    The main types of capitalism.<\/p>\n<\/div>\n

    Mercantilism<\/h3>\n

    Mercantilism is a doctrine that was born in Europe between the 16th and 18th centuries, and that argues that countries will be more prosperous and successful the more wealth they accumulate<\/strong>. In this way, they must maintain a positive trade balance, where exports exceed imports.<\/p>\n

    Free market<\/h3>\n

    This system of capitalism, also called a market economy, is characterized by set the prices of goods and services through supply and demand. <\/strong>In this way, avoid the intervention of the State or any third party.<\/strong><\/p>\n

    Social market economy<\/h3>\n

    The social market economy supports a minimal government intervention in the economy, but ensures that basic and important services<\/strong>, such as social security, labor rights or education, are under the command of the State<\/strong> or under agreements where it intervenes.<\/p>\n

    In the social market economy, the vast majority of companies are privately owned and owned.<\/strong> This is often the most widely used form of capitalism today.<\/p>\n

    Corporate capitalism<\/h3>\n

    This type of capitalism, bureaucratic and hierarchical, holds that the public sector (State) only intervenes in the market to benefit and promote the interests of corporations.<\/strong><\/p>\n

    Thus, in corporate capitalism, the state is in charge of remove competitive barriers and provide subsidies to companies <\/strong>to boost the country's economy.<\/p>\n

    Mixed economy<\/h3>\n

    The mixed economy it combines public sector intervention with the supply and demand market. <\/strong><\/p>\n

    This type of capitalism has a greater intervention of the State, since it ensures that the population has the right to necessary supply of resources<\/strong>. The mixed economy is also a widely used system today.<\/p>\n

    Origin of capitalism<\/h2>\n

    Capitalism or \u00aband<\/strong>free economy \u00bb<\/strong> It has been around since the earliest civilizations. However, appeared in Europe in the thirteenth century, <\/strong>when introduced as a substitute for feudalism, <\/strong>the social economic system of the Middle Ages.<\/p>\n

    Before capitalism existed as an economic system, work was practically mandatory and was required as slavery, servitude and a socio-moral obligation. In this way, capitalism proposed that work be done for wages and that workers be considered as employees, not as slaves.<\/strong><\/p>\n

    Difference between capitalism and socialism<\/h2>\n

    Capitalism and socialism are completely different economic systems.<\/p>\n

    Capitalism develops production with private entities<\/strong> and non-governmental, while socialism defends economic equality and helps the government eliminate inequality in society, <\/strong>implementing programs that protect those who have the least in an economic sense.<\/p>\n

    Definitely, capitalism is sustained through the freedom of the market <\/strong>while, in contrast, socialism supports a greater and rigorous state intervention in the market<\/strong>.<\/p>\n

    On the other hand, capitalism is governed by work independently for income<\/strong>Therefore, as the main ideal, the one who works less will have less, and the one who works more will have more.<\/p>\n

    Examples of capitalist countries<\/h2>\n

    Some countries employing the capitalist system<\/strong> at present they are the following:<\/p>\n\n\n\n\n\n\n\n
    Japan<\/td>\nUSA<\/td>\n<\/tr>\n
    France<\/td>\nItaly<\/td>\n<\/tr>\n
    Germany<\/td>\nHolland<\/td>\n<\/tr>\n
    Sweden<\/td>\nBelgium<\/td>\n<\/tr>\n
    England<\/td>\nSouth Africa<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n
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    What is capitalism? Capitalism is a economic system that defends the freedom…<\/p>\n","protected":false},"author":1,"featured_media":1093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-is"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=1092"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/1092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/1093"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=1092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=1092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=1092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}