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Capitalism is an economic and social system in which trade, industry and the means of production (also known as capital) are privately controlled (either singly or jointly) and operated for a profit Capital is vendible, which means it can be owned, operated, and bought and sold for the purpose of generating profits for private owners, either singly or jointly. Some criticize capitalism with the claim that in a capitalist economies a minority of individuals will come to own and control the majority of capital, while the majority will have little to no capital thus requiring them to sell their labour power or human capital.

In a capitalist system, investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by private decisions, usually within the context of markets. In a capitalist state, private property rights are protected by the rule of law of a government through a limited regulatory framework.

Capitalist economic practices incrementally became institutionalized in England between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages. Capitalism has been dominant in the Western world since the end of feudalism. Capitalism gradually spread throughout Europe, and in the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world.

Although the role of government has varied widely in capitalist systems, the term "capitalism" is often used to refer specifically to free market capitalism. In a free-market capitalist state, legislative action is confined to defining and enforcing the basic rules of the market, although the government may provide some public goods and infrastructure.

The central axiom of free-market capitalism is that the best allocation of resources is achieved through consumers having free choice, and producers responding accordingly to meet consumer demand. This contrasts with economic planning, in which the state directs what shall be produced based on rational economic planning. This also contrasts with decentralized economic planning and democratic worker management. Capitalists believe that the privatization of state-provided services can achieve more efficient outcomes by enabling them to better respond to market forces. Free-market capitalists usually support free trade and the abolition of subsidies.

Some consider laissez-faire to be pure capitalism, although it has never existed in practice. Laissez-faire signifies minimizing or eliminating state interference in economic affairs, allowing the free play of supply and demand. All large economies today have a mixture of private and public ownership and control, so some feel that the term mixed economy describes most contemporary economies. In the capitalist mixed economy, the state intervenes in market activity and provides many services.

Etymology and early usage

The etymology of the word capital is in the trade and ownership of animals. The Latin root of capital is capitalis, from the proto-Indo-European kaput, which means head, as in the number of heads in a person's livestock. The terms chattel and cattle also derive from the same origin. The lexical connections between animal trade and economics can also be seen in the names of many currencies and words about money: fee (faihu), rupee (rupya), buck (a deerskin), pecuniary (pecu), stock (livestock), and peso (pecu or pashu).

Arthur Young first used the term capitalist in his work Travels in France (1792). Samuel Taylor Coleridge, an English poet, used capitalist in his work Table Talk (1823). Pierre-Joseph Proudhon used capitalist in his first work What is Property? (1840) to refer to the owners of capital. Benjamin Disraeli used capitalist in the 1845 work Sybil. Karl Marx and Friedrich Engels used the term capitalist (Kapitalist) in The Communist Manifesto (1848) to describe a private owner of capital.

According to the Oxford English Dictionary (OED), the term capitalism was first used by novelist William Makepeace Thackeray in 1854, by which he meant having ownership of capital. According to the OED, Carl Adolph Douai, a German-American socialist and abolitionist, used the term private capitalism in 1863.

Karl Marx and Friedrich Engels referred to the capitalistic system (kapitalistisches System) and the capitalist mode of production (kapitalistische Produktionsform) in Das Kapital (1867). Marx did not extensively use the term, but it was the first time that capitalism was used in reference to an economic system. Marx's notion of the capitalist mode of production is characterised as a system of primarily private ownership of the means of production in a mainly market economy, with a legal framework on commerce and a physical infrastructure provided by the state. Engels made more frequent use of the term, and volumes II and III of Das Kapital, both edited by Engels after Marx's death, contain the word capitalism four and three times, respectively. The three combined volumes of Das Kapital (1867, 1885, 1894) contain the word capitalist more than 2,600 times.

An 1877 work entitled Better Times and an 1884 work called Pall Mall Gazette both include the term capitalism. A later use of the term capitalism to describe the production system was by the German economist Werner Sombart, in his 1902 book The Jews and Modern Capitalism (Die Juden und das Wirtschaftsleben). Max Weber used capitalism in his 1904 book The Protestant Ethic and the Spirit of Capitalism (Die protestantische Ethik und der Geist des Kapitalismus).

For much of the 20th century, the term "capitalism" was mostly employed ly by Marxist and other critics of the system, while defenders preferred such terms as "free enterprise]]. However, with the downfall of Communism the term came to be used neutrally or favorably, and previously pejorative uses were appropriated by supporters. For example, Forbes magazine described itself as a "capitalist tool" and referred to its audience as "capitalist pigs".

History

The historical development of capitalism is complicated and requires an in-depth analysis. Some general trends, however, are possible to pinpoint here and be expanded more fully in the History of capitalism.

According to many accounts, the modern capitalist system was born out of European feudalism, a system composed of land-owning aristocracy and serfs. With the crumbling of feudalism, and the movement of serfs to cities, merchants and wage earners grew in number and importance. Overland and overseas merchants dominated the mercantalist period as commodities flowed all over Europe and the world. At the period from the 18th century, the commercial stage of capitalism transcended from the previous domination of capitalism by merchants. Commercialism, or commercial capitalism, grew out of large chartered join-stock companies such as the British East India Company and the Dutch East India Company. Handicraft artisans and merchant trade gave way in the late 1800s to the driving force of large-scale industry during the Industrial Revolution, particularly in Great Britain but soon spreading to the rest of Europe and North America.

In the late 19th century, the control and direction of large areas of industry came into the hands of trusts, financiers and holding companies. This period was dominated by an increasing number of oligopolistic firms earning supernormal profits. Gradually, during this Progressive Era, the U.S. federal government played a larger and larger role in passing antitrust laws and regulation of industrial standards for key industries of special public concern.

In the period following the global depression of the 1930s, the state played an increasingly prominent role in the capitalistic system throughout much of the world. This became known as the Keynesian era because of John Maynard Keynes' argument that governments need "prime the pump" during times of economic depression. A long postwar boom followed but ended in the early 1970s, convincing many governments to move away from the Keynesian welfare-statist mode of regulation and follow instead Friedrich Hayek and Milton Friedman laissez-faire views of deregulation. The collapse of the Soviet Union further convinced many of the superiority of capitalism over communism.

A number of trends, such as global free trade pacts, telecommunications revolution, and the increasing ease of global travel, associated with globalization have acted to increase the mobility of people and capital since the last quarter of the 20th century, combining to circumscribe the room to maneuver of states in choosing non-capitalist models of development. Capitalism should now be viewed as increasingly global.

Perspectives

The concepts of capitalism has evolved alongside capitalism itself resulting in a diversity of perspectives. Following are the necessarily brief perspectives of the major schools of economic thought on capitalism.

Classical political economy

Classical economic thought and classical liberalism emerged alongside the development of capitalism in Britain in the late 18th century. The defining precepts of capitalism for most classical political economists were the promotion of free trade, free markets, the "invisible hand" as opposed to mercantilism. These theories carved out a limited role for government and a larger role for the "economy" or "market". The classical political economists Adam Smith, David Ricardo, Jean-Baptiste Say, and John Stuart Mill published analyses of the production, distribution and exchange of goods in a market that have since formed the basis of study for most contemporary economists. In France, 'Physiocrats' like François Quesnay promoted free trade based on a conception that wealth originated from land. Quesnay's Tableau Économique (1759), described the economy analytically and laid the foundation of the Physiocrats' economic theory, followed by Anne Robert Jacques Turgot who opposed tariffs and customs duties and advocated free trade.

Marxian political economy

Concurrent to the classical political economists was Karl Marx who considered capitalism to be a historically specific mode of production (the way in which the productive property is owned and controlled, combined with the corresponding social relations between individuals based on their connection with the process of production) in which capitalism has become the dominant mode of production. For Marx, capitalism may have free markets but the development of capitalism is governed by the struggle between the class of the owners of means of production - the capitalists or bourgeoisie - who also make claims on capitalist surplus value and those who sell their own labour - the workers - and ultimately create surplus value that is appropriated by the capitalists.

Vladimir Lenin, in Imperialism, the Highest Stage of Capitalism (1916), modified classic Marxist theory and argued that capitalism necessarily induced monopoly capitalism - which he also called "imperialism" - in order to find new markets and resources, representing the last and highest stage of capitalism.

Weberian political sociology

Max Weber, 19th century German social theorist, considered market exchange, rather than production, as the defining feature of capitalism. Capitalist enterprises, in contrast to their counterparts in prior modes of economic activity, was their rationalization of production, directed toward maximizing efficiency and productivity. According to Weber, workers in pre-capitalist economic institutions understood work in terms of a personal relationship between master and journeyman in a guild, or between lord and peasant in a manor.

In his book The Protestant Ethic and the Spirit of Capitalism (1904-1905), Weber sought to trace how a particular form of religious spirit, infused into traditional modes of economic activity, was a condition of possibility of modern western capitalism. For Weber, the 'spirit of capitalism' was, in general, that of ascetic protestantism; this ideology was able to motivate extreme rationalization of daily life, a propensity to accumulate capital by a religious ethic to advance economically, and thus also the propensity to reinvest capital.

Institutional economics

Institutional economics, once the main school of economic thought in the United States, holds that capitalism cannot be separated from the political and social system within which it is embedded. It emphasizes the legal foundations of capitalism (see John R. Commons) and the evolutionary, habituated, and volitional processes by which institutions are erected and then changed (see John Dewey, Thorstein Veblen, and Daniel Bromley.)

One key figure in institutional economics was Thorstein Veblen who in his book The Theory of the Leisure Class (1899) analyzed the motivations of wealthy people in capitalism who conspicuously consumed their riches as a way of demonstrating success. The concept of conspicuous consumption was in direct contradiction to the neoclassical view that capitalism was efficient. In The Theory of Business Enterprise (1904) Veblen distinguished the motivations of industrial production for people to use things from business motivations that used, or misused, industrial infrastructure for profit, arguing that the former is often hindered because businesses pursue the latter. Output and technological advance are restricted by business practices and the creation of monopolies. Businesses protect their existing capital investments and employ excessive credit, leading to depressions and increasing military expenditure and war through business control of political power.

German Historical School and Austrian School

From the perspective of the German Historical School, capitalism is primarily identified in terms of the organization of production for markets. Although this perspective shares similar theoretical roots with that of Weber, its emphasis on markets and money lends it different focus. For followers of the German Historical School, the key shift from traditional modes of economic activity to capitalism involved the shift from medieval restrictions on credit and money to the modern monetary economy combined with an emphasis on the profit motive.

The Austrian economist Joseph Schumpeter, a forerunner of the Austrian School of economics (diverging from the German Historical School), emphasized the "creative destruction" of capitalism — the fact that market economies undergo constant change. At any moment of time, posits Schumpeter, there are rising industries and declining industries. Schumpeter, and many contemporary economists influenced by his work, argue that resources should flow from the declining to the expanding industries for an economy to grow, but they recognized that sometimes resources are slow to withdraw from the declining industries because of various forms of institutional resistance to change.

The Austrian economists Ludwig von Mises and Friedrich Hayek were among the leading defenders of market capitalism against 20th century proponents of socialist planned economies. Mises and Hayek argued that only market capitalism could manage a complex, modern economy. Since a modern economy produces such a large array of distinct goods and services, and consists of such a large array of consumers and enterprises, asserted Mises and Hayek, the information problems facing any other form of economic organization other than market capitalism would exceed its capacity to handle information. Thinkers within Supply-side economics built on the work of the Austrian School, and particularly emphasize Say's Law: "supply creates its own demand." Capitalism, to this school, is defined by lack of state restraint on the decisions of producers.

Hayek and von Mises, in turn, has been a major influence on the ideology of libertarianism. Influential libertarian institutes, Center for Libertarian Studies and the Ludwig von Mises Institute, consider laissez-faire capitalism to be the ideal economic system.

Keynesian economics

The Great Depression brought on a low point for laissez-faire theories. John Maynard Keynes, a British economist, was well placed to convince governments that capitalism needed heavy state intervention to promote aggregate demand and fight high unemployment. In his 1937 The General Theory of Employment, Interest, and Money, the British economist John Maynard Keynes argued that capitalism suffered a basic problem in its ability to recover from periods of slowdowns in investment. Keynes argued that a capitalist economy could remain in an indefinite equilibrium despite high unemployment. Essentially rejecting Say's law, he argued that some people may have a liquidity preference which would see them rather hold money than buy new goods or services, which therefore raised the prospect that the Great Depression would not end without what he termed in the General Theory "a somewhat comprehensive socialization of investment."

In 1999, Time Magazine named Keynes one of the 100 most influential people of the 20th century and reported that, "His radical idea that governments should spend money they don't have may have saved capitalism".

John Maynard Keynes tried to provide solutions to many of Marx’s problems without completely abandoning the classical understanding of capitalism. His work attempted to show that regulation can be effective, and that economic stabilizers can reign in the aggressive expansions and recessions that Marx disliked. These changes sought to create more stability in the business cycle, and reduce the abuses of laborers. Keynesian economists argue that Keynesian policies were one of the primary reasons capitalism was able to recover following the Great Depression.

The premises of Keynes' work have been challenged by neoclassical economists as well as by colleagues. In Keynes' colleague Piero Sraffa's highly technical analysis, capitalism is defined by an entire system of social relations among both producers and consumers, but with a primary emphasis on the demands of production. According to Sraffa, the tendency of capital to seek its highest rate of profit causes a dynamic instability in social and economic relations. The Neo-Ricardian school followed Sraffa down that line of critique.

Neoclassical economics and the Chicago School

Today, the majority of academic research on capitalism in the English-speaking world draws on neoclassical economic thought. It favors extensive market coordination and relatively minimal market regulation by governments aimed at maintaining property rights, rather than privileging particular social actors; deregulated labor markets; corporate governance dominated by financial owners of firms; and financial systems depending chiefly on capital market-based financing rather than state financing.

Milton Friedman took many of the basic principles set forth by Adam Smith and the classical economists and gave them a new twist. One example of this is his article in the September 1970 issue of The New York Times Magazine, where he claims that the social responsibility of business is “to use its resources and engage in activities designed to increase its profits…(through) open and free competition without deception or fraud.” This is tantamount to Smith’s argument that self interest in turn benefits the whole of society. Work like this helped lay the foundations for the coming marketization (or privatization) of state enterprises and the supply-side economics of Ronald Reagan and Margaret Thatcher.

The Chicago School of economics is best known for its free market advocacy and monetarist ideas. According to Friedman and other monetarists, market economies are inherently stable if left to themselves and depressions result only from government intervention. Friedman, for example, argued that the Great Depression was result of a contraction of the money supply, controlled by the Federal Reserve, and not by the lack of investment as John Maynard Keynes had argued. Ben Bernanke, current Chairman of the Federal Reserve, is among the economists today generally accepting Friedman's analysis of the causes of the Great Depression.

Political advocacy

Support

Many theorists and policymakers in predominantly capitalist nations have emphasized capitalism's ability to promote economic growth, as measured by Gross Domestic Product (GDP), capacity utilization or standard of living. This argument was central, for example, to Adam Smith's advocacy of letting a free market control production and price, and allocate resources. Many theorists have noted that this increase in global GDP over time coincides with the emergence of the modern world capitalist system. While the measurements are not identical, proponents argue that increasing GDP (per capita) is empirically shown to bring about improved standards of living, such as better availability of food, housing, clothing, and health care. The decrease in the number of hours worked per week and the decreased participation of children and the elderly in the workforce have been attributed to capitalism. Proponents also believe that a capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. To their thinking, this potential is much greater than in either traditional feudal or tribal societies or in socialist societies.

Milton Friedman has argued that the economic freedom of competitive capitalism is a requisite of political freedom. Friedman argued that centralized control of economic activity is always accompanied by political repression. In his view, transactions in a market economy are voluntary, and the wide diversity that voluntary activity permits is a fundamental threat to repressive political leaders and greatly diminish power to coerce. Friedman's view was also shared by Friedrich Hayek and John Maynard Keynes, both of whom believed that capitalism is vital for freedom to survive and thrive.

Austrian School economists have argued that capitalism can organize itself into a complex system without an external guidance or planning mechanism. Friedrich Hayek coined the term "catallaxy" to describe what he considered the phenomenon of self-organization underpinning capitalism. From this perspective, in process of self-organization, the profit motive has an important role. From transactions between buyers and sellers price systems emerge, and prices serve as a signal as to the urgent and unfilled wants of people. The promise of profits gives entrepreneurs incentive to use their knowledge and resources to satisfy those wants. Thus the activities of millions of people, each seeking his own interest, are coordinated.

This decentralized system of coordination is viewed by some supporters of capitalism as one of its greatest strengths. They argue that it permits many solutions to be tried, and that real-world competition generally finds a good solution to emerging challenges. In contrast, they argue, central planning often selects inappropriate solutions as a result of faulty forecasting. However, in all existing modern economies, the state conducts some degree of centralized economic planning (using such tools as allowing the country's central bank to set base interest rates), ostensibly as an attempt to improve efficiency, attenuate cyclical volatility, and further particular social goals. Proponents who follow the Austrian School argue that even this limited control creates inefficiencies because we cannot predict the long-term activity of the economy. Milton Friedman, for example, has argued that the Great Depression was caused by the erroneous policy of the Federal Reserve.

Ayn Rand was a prominent philosophical supporter of laissez-faire capitalism; her novel Atlas Shrugged was an influential publications on the subject of business and continues to be a best-seller. The first person to endow capitalism with a new code of morality (Rational Selfishness), she did not justify capitalism on the grounds of pure "practicality" (that it is the best wealth-creating system), or the supernatural (that God or religion supports capitalism), or because it benefits the most people, but maintained that it is the only morally valid socio-political system because it allows people to be free to act in their rational self-interest. These thinkers have had a substantial influence on the Libertarian Party. The Libertarian Party strongly advocates the elimination of most, if not all, state involvement in the marketplace. The Republican Liberty Caucus is the libertarian branch of the Republican Party.

Criticism

Notable critics of capitalism have included: socialists, anarchists, communists, some forms of conservatism, Luddites, Narodniks, some schools of nationalism and Shakers. Marxism advocated a revolutionary overthrow of capitalism that would lead to socialism before eventually transforming into communism after class antagonisms and the state ceased to exist. Marxism influenced social democratic and labour parties as well as some moderate democratic socialists, who seek change through existing democratic channels instead of revolution, and believe that capitalism should be heavily regulated rather than abolished, supplementing the market economy with a mixed economy. Many aspects of capitalism have come under attack from the anti-globalization movement, which is primarily opposed to corporate capitalism.

Many religions have criticized or opposed specific elements of capitalism; traditional Judaism, Christianity, and Islam forbid lending money at interest, although methods of Islamic banking have been developed. Christianity has been a source of both praise and criticism for capitalism, particularly its materialist aspects. The first socialists drew many of their principles from Christian values, against "bourgeois" values of profiteering, greed, selfishness, and hoarding. Some Christian critics of capitalism may not oppose capitalism entirely, but support a mixed economy in order to ensure adequate labor standards and relations, as well as economic justice. Indian philosopher P.R. Sarkar, founder of the Ananda Marga movement, developed the Law of Social Cycle to identify the problems of capitalism and proposed the Progressive Utilization Theory (PROUT) as a solution to its ills. Following the economic crisis which began in 2008, Pope Benedict XVI issued an encyclical Caritas in veritate (Charity in Truth) in 2009; he stated: "The dignity of the individual and the demands of justice require, particularly today, that economic choices do not cause disparities in wealth to increase in an excessive and morally unacceptable manner" and "Therefore, it must be borne in mind that grave imbalances are produced when economic action, conceived merely as an engine for wealth creation, is detached from political action, conceived as a means for pursuing justice through redistribution".

Critics argue that capitalism is associated with: unfair and inefficient distribution of wealth and power; a tendency toward market monopoly or oligopoly (and government by oligarchy); imperialism, counter-revolutionary wars and various forms of economic and cultural exploitation; repressions of workers and trade unionists, and phenomena such as social alienation, inequality, unemployment, and economic instability. Critics have argued that there is an inherent tendency towards oligolopolistic structures when laissez-faire is combined with capitalist private property. Capitalism is regarded by many socialists to be irrational in that production and the direction the economy is unplanned, creating many inconsistencies and internal contradictions.

In the early 20th century, Vladimir Lenin argued that state use of military power to defend capitalist interests abroad was an inevitable corollary of monopoly capitalism. Economist Branko Horvat states, "it is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom." Southern Methodist University Economics Professor Ravi Batra argues that excessive income and wealth inequalities are a fundamental cause of financial crisis and economic depression, which will lead to the collapse of capitalism and the emergence of a new social order.

Environmentalists have argued that capitalism requires continual economic growth, and will inevitably deplete the finite natural resources of the earth, and other broadly utilized resources. Murray Bookchin has argued that capitalist production externalizes environmental costs to all of society, and is unable to adequately mitigate its impact upon ecosystems and the biosphere at large. Labor historians and scholars, such as Immanuel Wallerstein, Tom Brass and latterly Marcel van der Linden, have argued that unfree labor — by slaves, indentured servants, prisoners, and other coerced persons — is compatible with capitalist relations.

Democracy, the state, and legal frameworks

The relationship between the state, its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in a formal property system where ownership and transactions are clearly recorded. According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the Enclosure Acts in England, and similar legislation elsewhere, were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to the development of capitalism. (See Democracy, the state and legal frameworks of the History of capitalist theory for more explanation.)

See also

• Anti-capitalism
• Anarcho-capitalism
• Capitalist mode of production
• Communism
• Corporate capitalism
• Crony capitalism
• Debt bondage
• Economic liberalism
• Finance capitalism
• Guaranteed minimum income
• Late capitalism
• Laissez-faire capitalism
• Liberal capitalism
• Neo-Capitalism
• Objectivism (Ayn Rand)
• Pollution
• Post-capitalism
• Rogue state
• Socialism
• State capitalism
• State monopoly capitalism
• Taxation as slavery
• The End of Work by Jeremy Rifkin
• The Theory of Business Enterprise by Thorstein Veblen
• Technocapitalism
• Tragedy of the commons
• Wage slavery
• When Corporations Rule the World by David Korten

Notes

1. http://www.merriam-webster.com/dictionary/capitalism
2. "Capitalism." Compact Oxford English Dictionary.
3. Arleen J. Hoag, John H. Hoag. Introductory Economics. World Scientific, 2006. pp 43-44.
4. Wood 2002, p. 2
5. Obrinsky (1983) p.1
6. Hunt, E. K. 2002. History of Economic Thought: A Critical Perspective. 2nd, updated ed. Armonk, N.Y.: M.E. Sharpe. p.49 (quoting Adam Smith)
7. Bacher (2007) p. 2; De George (1986) pp.104, 111; Lash (2000) p.36
8. ^ Lane, J.E. (2002). Government and the Economy: A Global Perspective. Continuum International Publishing Group. pp. 7–16. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
9. ^ Pejovich, Svetozar (1990). The Economics of Property Rights. Springer. p. 31. {{cite book}}: More than one of |pages= and |page= specified (help)
10. Banaji, Jairus (2007). "Islam, the Mediterranean and the rise of capitalism". Journal Historical Materialism. 15. Brill Publishers: 47–74. doi:10.1163/156920607X171591.
11. ^ Capitalism. Encyclopedia Britannica. 2006.
12. Scott, John (2005). Industrialism: A Dictionary of Sociology. Oxford University Press.
13. Eric Aaron, What's Right? (Dural, Australia: Rosenberg Publishing, 2003), 75.
14. ^ McConnell, Campbell R. and Brue, Stanley L., Microeconomics: Principles, Problems, and Policies. McGraw-Hill, 1992. p 38
15. Stromberg, Joseph R. (1977), The Political Economy of Liberal Corporatism, Center for Libertarian Studies
16. von Mises, Ludwig (1996), "The Market: Capitalism", [[Human Action]], Irvington, NY: Foundation for Economic Education, pp. 264–268 {{citation}}: URL–wikilink conflict (help)
17. François, Crouzet. The Victorian Economy. Routledge, 1982. p. 105
18. Tucker, Irvin B. (1997). Macroeconomics for Today. p. 553.
19. Case, Karl E. (2004). Principles of Macroeconomics. Prentice Hall.
20. "all of the capitalistic societies of the West have mixed economies that temper capitalism" with interventionist government regulation and social programs. Shafritz, Jay M. (1992). The HarperCollins Dictionary of American Government and Politics. HarperPerennial. P. 93
21. Murray N. Rothbard. Isaiah Berlin on Negative Freedom
22. Ludwig von Mises. The Objectives of Economic Education
23. Werhane, P.H. (1994). "Adam Smith and His Legacy for Modern Capitalism". The Review of Metaphysics. 47 (3). Philosophy Education Society, Inc.
24. ^ "free enterprise." Roget's 21st Century Thesaurus, Third Edition. Philip Lief Group 2008.
25. Cite error: The named reference mutualist was invoked but never defined (see the help page).
26. Friedman, Milton. 1962. Capitalism and Freedom. University of Chicago Press. p 38.
27. "market economy", Merriam-Webster Unabridged Dictionary
28. "About Cato". Cato.org. Retrieved 2008-11-06.
29. "The Achievements of Nineteenth-Century Classical Liberalism".

    Although the term "liberalism" retains its original meaning in most of the world, it has unfortunately come to have a very different meaning in late twentieth-century America. Hence terms such as "market liberalism," "classical liberalism," or "libertarianism" are often used in its place in America.

30. Cite error: The named reference whatisthefreemarket was invoked but never defined (see the help page).
31. Llewellyn H. Rockwell, Jr.. (2005) "Free Trade and the American Political Tradition."
32. Mutualist Blog: Free Market Anti-Capitalism
33. ^ James Augustus Henry Murray. "Capitalism". A New English Dictionary on Historical Principles. Oxford English Press. Vol 2. page 94.
34. Arthur Young. Travels in France
35. Samuel Taylor Coleridge. Tabel The Complete Works of Samuel Taylor Coleridge. page 267.
36. Karl Marx. Chapter Sixteen: Absolute and Relative Surplus-Value. Das Kapital.

    Die Verlängrung des Arbeitstags über den Punkt hinaus, wo der Arbeiter nur ein Äquivalent für den Wert seiner Arbeitskraft produziert hätte, und die Aneignung dieser Mehrarbeit durch das Kapital - das ist die Produktion des absoluten Mehrwerts. Sie bildet die allgemeine Grundlage des kapitalistischen Systems und den Ausgangspunkt der Produktion des relativen Mehrwerts.

    The prolongation of the working-day beyond the point at which the labourer would have produced just an equivalent for the value of his labour-power, and the appropriation of that surplus-labour by capital, this is production of absolute surplus-value. It forms the general groundwork of the capitalist system, and the starting-point for the production of relative surplus-value.

37. Karl Marx. Chapter 25: The General Law of Capitalist Accumulation. Das Kapital.
    • Die Erhöhung des Arbeitspreises bleibt also eingebannt in Grenzen, die die Grundlagen des kapitalistischen Systems nicht nur unangetastet lassen, sondern auch seine Reproduktion auf wachsender Stufenleiter sichern.
    • Die allgemeinen Grundlagen des kapitalistischen Systems einmal gegeben, tritt im Verlauf der Akkumulation jedesmal ein Punkt ein, wo die Entwicklung der Produktivität der gesellschaftlichen Arbeit der mächtigste Hebel der Akkumulation wird.
    • Wir sahen im vierten Abschnitt bei Analyse der Produktion des relativen Mehrwerts: innerhalb des kapitalistischen Systems vollziehn sich alle Methoden zur Steigerung der gesellschaftlichen Produktivkraft der Arbeit auf Kosten des individuellen Arbeiters;
38. Saunders, Peter (1995). Capitalism. University of Minnesota Press. p. 1
39. Volume I of Das Kapital, p.124 (German edition)
40. Theories of Surplus Value, tome II, p.493 (German edition)
41. Karl Marx. Das Kapital.
43. ^ Burnham, Peter (2003). Capitalism: The Concise Oxford Dictionary of Politics. Oxford University Press.
44. "Imperialism, the Highest Stage of Capitalism". Marxists. 1916. Retrieved 2008-02-26.
45. Kilcullen, John (1996). "MAX WEBER: ON CAPITALISM". Macquarie University. Retrieved 2008-02-26.
46. Robert Reich (1999-03-29). "The Time 100: John Maynard Keynes". Time (magazine). Retrieved 2009-06-18.
47. Erhardt III, Erwin. "History of Economic Development." University of Cincinnati. Lindner Center Auditorium, Cincinnati. 07 Nov. 2008.
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52. Robert E. Lucas Jr. "The Industrial Revolution: Past and Future". Federal Reserve Bank of Minneapolis 2003 Annual Report. Retrieved 2008-02-26.
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References

• Bacher, Christian (2007) Capitalism, Ethics and the Paradoxon of Self-exploitation Grin Verlag. p.2
• De George, Richard T. (1986) Business ethics p. 104
• Lash, Scott and Urry, John (2000). Capitalism. In Nicholas Abercrombie, S. Hill & BS Turner (Eds.), The Penguin dictionary of sociology (4th ed.) (pp. 36–40).
• Obrinsky, Mark (1983). Profit Theory and Capitalism. University of Pennsylvania Press. pp. p.1. {{cite book}}: |pages= has extra text (help)
• Wolf, Eric (1982) Europe and the People Without History
• Wood, Ellen Meiksins (2002) The Origins of Capitalism: A Longer View London: Verso

Further reading

• Ackerman, Frank (August 24, 2005). Priceless: On Knowing the Price of Everything and the Value of Nothing. New Press. p. 277. ISBN 1565849817. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
• Buchanan, James M. Politics Without Romance.
• Braudel, Fernand. Civilization and Capitalism: 15th - 18 Century.
• Bottomore, Tom (1985). Theories of Modern Capitalism.
• H. Doucouliagos and M. Ulubasoglu (2006). "Democracy and Economic Growth: A meta-analysis". School of Accounting, Economics and Finance Deakin University Australia.
• Coase, Ronald (1974). The Lighthouse in Economics.
• Demsetz, Harold (1969). Information and Efficiency.
• Fulcher, James (2004). Capitalism.
• Friedman, Milton (1952). Capitalism and Freedom.
• Galbraith, J.K. (1952). American Capitalism.
• Böhm-Bawerk, Eugen von (1890). Capital and Interest: A Critical History of Economical Theory. London: Macmillan and Co.
• Harvey, David (1990). The Political-Economic Transformation of Late Twentieth Century Capitalism. Cambridge, MA: Blackwell Publishers. ISBN 0-631-16294-1.
• Hayek, Friedrich A. (1975). The Pure Theory of Capital. Chicago: University of Chicago Press. ISBN 0-226-32081-2.
• Hayek, Friedrich A. (1963). Capitalism and the Historians. Chicago: University of Chicago Press.
• Heilbroner, Robert L. (1966). The Limits of American Capitalism.
• Heilbroner, Robert L. (1985). The Nature and Logic of Capitalism.
• Heilbroner, Robert L. (1987). Economics Explained.
• Josephson, Matthew, The Money Lords; the great finance capitalists, 1925-1950, New York, Weybright and Talley, 1972.
• Luxemburg, Rosa (1913). The Accumulation of Capital.
• Marx, Karl (1886). Capital: A Critical Analysis of Capitalist Production.
• Mises, Ludwig von (1998). Human Action: A Treatise on Economics. Scholars Edition.
• Rand, Ayn (1986). Capitalism: The Unknown Ideal. Signet.
• Reisman, George (1996). Capitalism: A Treatise on Economics. Ottawa, Illinois: Jameson Books. ISBN 0-915463-73-3.
• Resnick, Stephen (1987). Knowledge & Class: a Marxian critique of political economy. Chicago: University of Chicago Press.
• Rostow, W. W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto. Cambridge: Cambridge University Press.
• Schumpeter, J. A. (1983). Capitalism, Socialism, and Democracy.
• Scott, John (1997). Corporate Business and Capitalist Classes.
• Seldon, Arthur (2007). Capitalism: A Condensed Version. London: Institute of Economic Affairs.
• Sennett, Richard (2006). The Culture of the New Capitalism.
• Smith, Adam (1776). An Inquiry into the Nature and Causes of the Wealth of Nations.
• De Soto, Hernando (2000). The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. New York: Basic Books. ISBN 0-465-01614-6.
• Strange, Susan (1986). Casino Capitalism.
• Wallerstein, Immanuel. The Modern World System.
• Weber, Max (1926). The Protestant Ethic and the Spirit of Capitalism.

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