Capitalism Vs Industrialization

Industrialization is the process when a society transforms itself from a primarily agricultural society into one that is based on the manufacturing of goods and services (Investopia.com). In industrialization, individual manual labor is often replaced by mechanical machines and craftsmen are replaced by assembly lines. Industrialization is most commonly associated with the Industrial Revolution of the early nineteenth century. The outbreak of the second World War also led to a period of industrialization which resulted in the growth and development of urban centers and the suburbs (Investopia.com). Capitalism on the other hand is an economic system in which trade, the means of production, and industry are entirely privately owned and operated

Especially the developed countries. Under this system, the means for producing and distributing goods are owned by a small minority of people. These people are often referred to as the capitalist class. The majority of the people must sell their ability to work in return for a wage or salary, who are referred to as the working class. The working class are paid to produce goods and services which are then sold for profit. The profit is gained by the capitalist class because they can make more money by selling what the working class has produced, then they cost to buy on the labor market. In a sense the working class is exploited by the capitalist class because the capitalists live off the profits they obtain from exploiting the working class while reinvesting some of their profits for the further accumulation of wealth. Capitalism results in class division. This is very evident in the United States of America. In the USA there is a very clear line between wealthy and poor. The richest one percent of the population in America holds over seventy percent of all financial assets in the country (Alternet- Economy). Leaving ninety-nine percent to share the remainder thirty