This document defines and describes various aspects of capitalism. Capitalism is an economic system defined by private ownership of trade, industries and means of production that are operated for profit. It is based on wage labor, private ownership and production for exchange and profit. Under capitalism, money is invested to generate more money through the process of capital accumulating more capital. Key features include private property, large-scale production, profit as the main motive, competition, and the price mechanism being determined by supply and demand rather than production costs. The document also discusses various forms of capitalism and both pros and cons.
2. CAPITALISM DEFINATION:
Capitalism is an economic system and a
mode of production in which trade,
industries, and the means of production are
largely or entirely privately owned and
operated for profit.
3. CAPITALISM
IT IS AN ECONOMIC SYSTEM
BASED ON 3 THINGS:
• WAGE LABOUR
• PRIVATE OWNERSHIP
• PRODUCTION FOR
EXCHANGE AND
PROFIT
5. CAPITALISM
CAPITAL:
• WHEN MONEY FUNCTIONS LIKE
THIS, IT FUNCTIONS LIKE CAPITAL.
EG: WHEN COMPANY USES ITS
PROFIT TO HIRE MORE STAFF OR
OPEN NEW PREMISES AND MAKE
MORE PROFIT.
7. CAPITALISM
• LARGE SCALE PRODUCTION::
CAPITALISM AROSE AS A RESULT OF
INDUSTRIAL REVOLUTION WHICH
MADE LARGE SCALE PRODUCTION
POSSIBLE. MORE PRODUCTION
MEANS WIDER USE OF CAPITAL AND
LEAD TO MORE PROFITS.
8. CAPITALISM
• PROFIT AS KEY MOTIVE:
MONEY LEFT OVER CAN BE SPENT
IN ANY WAY THE MANUFACTURER
WANTS.
PRODUCTION UNDER CAPITALISM IS
PROFIT-ORIENTED.
9. CAPITALISM
• COMPETITION:
IN CAPITALISM THERE IS
EXTREME COMPETITION
BETWEEN CAPITALISTS.
DEMAND IS ARTIFICIALLY
INCREASED AND SUPPLY IS
DECREASED. THERE IS CUT THROAT
COMPETITION UNDER CAPITALISM.
10. CAPITALISM
• PRICE MECHANISM:
IN CAPITALISM THE PRICE OF A
ACCOMODITY IS DETERMINED NOT
BY THE COST OF PRODUCTION BUT
BY THE LAW OF DEMAND AND
SUPPLY.
12. CAPITALISM
• MONEY AND CREDIT:
IN CAPITALISM INSTITUTION OF
CREDIT HAS BECOME
IMPORTANT.HE CAPITALISTS GET
MONEY ON LOAN AND DEVELOP
THEIR BUSINESS.
13. CAPITALISM
• LAISSEZ – FAIRE COPETITION:
THERE IS NO GOVERNMENTAL
CONTROL OVER THE FORCES OF
PRODUCTION, DISTRIBUTION AND
EXCHANGE. IT IS CONTROLLED BY
THE FORCES OPERATING
IN MARKET.
14. CAPITALISM
• RESPONSIBLE CAPITALISM:
IT IS ESSENTIALLY A FREE MARKET
ECONOMY. BUT WITH A DEGREE OF
GOVERNMENT REGULATION TO
AVID THE EXCESSES AND
INEQUALITIES OF CAPITALISM.
15. CAPITALISM
• TURBO CAPITALISM:
REFERS TO AN UNREGULATED FORM
OF CAPITALISM WITH FINANCIAL
DEREGULATION , PRIVATISATION
AND LOWER TAX ON HIGH EARNER.
16. CAPITALISM
• CRONY CAPITALISM:
A TERM USED TO REFER TO THE
SITUATION WHERE BUSINESS
SUCCESS IS RELATED TO STRATEGIC
INFLUENCES WITH CIVIL
SERVANTS, POLITICIANS AND THOSE
IN AUTHORITY.