Capitalism is a political ideology based on private ownership that promote privatisation. Where means of production like land, field, factories and industries are by a private individual. If we want to define capitalism that should be “From each according to his ability to each according to his capital” that means a society where everyone has to be work according to his ability but they get return according to his capital”. The oldest example of capitalism is Feudalism this can be called primitive form of capitalism this is around 10th centuries when land lord occupied the land and small farmer and labor were work on the land. They work very hard to grow crops but all the profits were used to take by the land lord and farmer and labor hardly earn enough money to survive. In today time capitalism Work similar today whatever you do in which ever company. Suppose you are employed in a big Multinational Company you worked whole day and get monthly salary in return but the profit of a company is always goes to the owner of the company. But the difference is in today's time you get worker rights like Minimum wages, time limitation and no one can exploit you, healthy working environment.
Modern capitalism started in 16th century in Netherland and Britain the first stock exchange was Amsterdam stock exchange and first company to be listed was Dutch East India company in 1602. Like there is a Karl Marx in communism similarly for capitalism there is Adam Smith who is called by the name of Father of capitalism in 1776 he writes a book called “The Wealth of Nation” in this book he talked about many aspects of capitalism like Privatisation, less government interference, free market and competition, money earned through money.
Most of capitalist believe that government has “no businesses to be in business” also Adam Smith come with a policy “Laissez Faire” it means leave alone. He also talks about the free market capitalism; he says “He is by an invisible hand to promote an end which was no part of his invention” That means free market is about to create a competition in market were every businessman tries to improve the quality of their product it also increases the innovation and think of new ways to improve product's and provide best price and service to the consumer. He further talks about division of labor he says “The productive powers of labor, and the greater part of the skill, dexterity and judgement with which it is anywhere directed or applied seem to have been the effect of the division of labour” this means every person who is working in industries is to be specialized in is work and because of the productivity and efficiency increases rapidly. This all theories are one of the major reasons for the success of the capitalism across the world. Everyone that if they want to work in a better manner and at a better speed, they have to follow this principal.
By the implementation of this ideas industrial revolution get a great boom and large factories were established government is also helping the business to became baggier and help the nation to grow, but this lead to create problems for labour industries owner start forcing the worker to work for an hour in a bad condition they start exploitation worker not giving them proper wages. Eventually these things bring the communist ideology. The theory of communism is introduced by German philosopher Karl Marx people also call him father of communism the meaning of communism is to create a society with no privatization concept exists even no inherited wealth exist and the wealth is distributed equally in every one but this type of society only exists in Karl Marx theories and in his mind but at the end he is only a philosopher he didn't know the practical implementation of communism. Karl Marx written a book Das Kapital were he agreed many viewpoints of Adam Smith but there are definitely disagreements between them but it can be said that they are looking at the same situation from different perspectives. On one hand Adam Smith focuses on productivity and efficiency on the other hand Karl Marx agreed upon that productivity and efficiency would indeed but his focuses are on individual worker he says “the worker would start felling alienation of the worker is expressed thus, the more he produces the less he can consume, the more value he creates, the less value he has. Labour produces fabulous thing foe the rich, but misery for the poor. Machines replace labour and job diminish”. But if we see in real world capitalism polices is more successful than communism polices the counties who follows communist ideologies like China and Russia became a dictatorship.
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