The Four Types of Capitalism

1529 Words4 Pages
bulb-icon

Recommended: Meaning and nature of capitalism

Capitalism is a form of economic model that stresses on private ownership when it comes to production, trade, and industry. The goal of all capitalists is to use various inputs in order to obtain profit. The main characteristics of capitalism are capital accumulation, competitive markets and wage labor. Ever since the fall of the communist Soviet Union the majority of the nations of the world have adapted capitalism as its main economic model. However there are many forms of capitalism that are being used throughout the world.
There are four types of capitalism: Free-Market Capitalism, Social Market Capitalism, State Capitalism, and Corporate Capitalism. The Free-Market Capitalism refers to an economic model where prices of goods and services are determined by market forces, not by government intervention. Free-Market Capitalism adheres to the Laissez-faire principle where the government does not interfere with the national economy except for the protection of property rights. Social-Market Capitalism is in theory a free market based economy with the exception of limited governmental intervention. The government in a limited capacity interferes with price formation. The government’s main role is to provide entitlement services such as universal health care and universal education to all its citizens. State Capitalism main principle is the control and ownership of the means of production. Management and organization of these industries is structured on a capitalistic manner meaning the main goal of a business entity within state capitalism is profit maximization. Usually countries that have in the present or in the past that have adopted socialism use state capitalism as its main economic model. Corporate Capitalism is a capitalis...

... middle of paper ...

...stablished culture in this country overall has seen more inequality than any other group in this nation. Originally they were slaves and after the Civil War the federal government failed to assist the free men and women to assimilate and participate in the national economy. In the southern United States segregation was another restriction which caused blacks to be more impoverished. In the current times the access to higher education and loans to start and sustain businesses own by blacks are the biggest inequality that hampers their efforts towards the contribution to the economy.
In conclusion capitalism no matter in what form it may be in has its winners and losers. Capitalism has been deemed progressive and highly successful in most countries. The key for a democratic country is the type of capitalistic principle the nation implements towards economic success.

Show More
Related

  • Capitalism And Capitalism Essay

    1251 Words  | 3 Pages

    Capitalism is an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state

    Read More

  • Responses to the Development of Capitalism DBQ

    1083 Words  | 3 Pages

    Throughout the 19th century, capitalism seemed like an economic utopia for some, but on the other hand some saw it as a troublesome whirlpool that would lead to bigger problems. The development of capitalism in popular countries such as in England brought the idea that the supply and demand exchange systems could work in most trade based countries. Other countries such as Russia thought that the proletariats and bourgeoisie could not co-exist with demand for power and land, and eventually resorted to communism in the early 20th century. Although many different systems were available to the countries in need of economic change, a majority of them found the right system for their needs. And when capitalist societies began to take full swing, some classes did not benefit as well as others and this resulted in a vast amount of proletariats looking for work. Capitalists societies are for certain a win-loss system, and many people did not like the change from having there society changed to a government controlled money hungry system. On the other hand, the demand for labor brought the bourgeoisie large profits because they could pay out as much as they wanted for labor.

    Read More

  • Capitalism in The Jungle Upton Sinclair

    1460 Words  | 3 Pages

    First, what is capitalism? And why it is good and why it is bad. Capitalism is all about efficiency and get things done. “Capital” by itself means own, operation and trade for making benefits with the most efficient way. Capitalism focuses more on emphasizing on individual profits rather than on workers or society as a whole. Capitalism provides free-market that produces the best economic outcome for society. Furthermore, capitalism is not friendly for lazy and laid back people because in order to live in the capitalist society, people need to work very hard in order to survive. However, capitalism will compensate well for people who are working hard and give contributions to the society. That is its good side. Capitalism is a form of political society ...

    Read More

  • Capitalism Dbq Analysis

    872 Words  | 2 Pages

    Capitalism was all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land. The right for an individual to exercise his or her own economic matters was created, allowing anyone to handle their own economic issues. You are allowed to earn as much money as possible from your products. The Bourgeoisie owned the factories and earned all of the money from the products

    Read More

  • Segregation in the United States: The Black Codes

    1258 Words  | 3 Pages

    African-Americans used to be treated very poorly by the rest of the United States. They were still treated as though they were slaves until the end of the Jim Crow laws. Even after that, southern states still attempted to keep African-Americans from being equal to the rest of Americans. Taxes were put up in order to vote, which kept African-Americans from doing so because most were very poor. They still did not have equal opportunity in the workforce either.

    Read More

  • Capitalism: Where Do We Come From?

    564 Words  | 2 Pages

    To begin, capitalism is the economic ideology that everything is primarily focused towards making profit through the production and distribution of a product. In the article “Capitalism: Where Do We Come From?” By Robert Heilbroner and Lester Thurow, they provide insight on how capitalism has changed over the years and the impact it now has in today’s society. “There were no factors of production before capitalism. Of course, human labour, nature’s gift of land and natural resources, and the artifacts of society have always existed. But labour, land, and capital were not commodities for

    Read More

  • Capitalism Where Do We Come From Analysis

    636 Words  | 2 Pages

    To begin, capitalism is the economic ideology that everything is primarily focused towards making profit through the production and distribution of a product. In the article “Capitalism: Where Do We Come From?” By Robert Heilbroner and Lester Thurow, they provide insight on how capitalism has changed over the years and the impact it now has in today’s society. “There were no factors of production before capitalism. Of course, human labour, nature’s gift of land and natural resources, and the artifacts of society have always existed. But labour, land, and capital were not commodities for sale” (Para,17). Capitalism has an impact in my life because in the 21st century children are taught in school skills that will benefit businesses, so that they can continue to make a profit through the production and distribution

    Read More

  • Slavery And Racial Inequality

    332 Words  | 1 Pages

    Racial inequality amongst African American and whites once started by slavery. Slavery separated blacks and whites as in blacks on this side and whites on the other side. There was no intervening between the two. With the mentality that African Americans have, now in days they feel as though slavery still exists. Our ancestors fought for us to have better days for us to still be locked down with industries, businesses, jobs and so on. Everyone should be on equal terms of rights, dignity, and the potential to achieve great things but unfortunately we see inequality based on race, gender, and other social characteristics that are unjust.

    Read More

  • Conflict Between Reconstruction And 1900's

    1052 Words  | 3 Pages

    The social circumstances on African Americans limited them on their wants, needs, and abilities. They were unable to vote, own land or have any personal belongings, and they were segregated from the white people in their community through Jim Crow Laws. Jim Crow laws were state and local laws enforcing racial segregation in the Southern United States. This made it very difficult for African Americans to feel socially acceptable. Education for African Americans was not a priority due to the white majority in the United States. Much of the country, especially the South, had strict laws against educating African Americans to protect the institution of slavery and to allow the white population to remain superior to all the African American race. Lynching is another horrific at of inequality. Lynching is the practice of murder by extrajudicial action. In other words, the southern white

    Read More

  • Explain The Red Scare In America After World War I

    1362 Words  | 3 Pages

    Capitalism is an economic and political system where a country's trade and industry is controlled by private owners in order to have a profit, rather than controlled by the government/state.

    Read More

  • Wage-Labor and Capital by Karl Marx

    679 Words  | 2 Pages

    To begin with, capitalism is a type economic system. Simply put, capitalism is the system where workers work for the capitalist and receive wages for their labor. In, Wage-Labour and Capital, Marx explains the exchange between the capitalist and their workers in regards to wages and labor. He wrote:

    Read More

  • Capitalism vs Communism

    661 Words  | 2 Pages

    The essential nature of capitalism is social harmony through the pursuit of self interest. Under capitalism, the individuals pursuit of his own economic self interest simultaneously benefits the economic self interest of all others. In allowing each individual to act unhampered by government regulations, capitalism causes inventions, prosperity and ideas to be created in the most efficient manner possible which ultimately raises the standard of living, increasing opportunities and makes available an ever growing supply of products for everyone.

    Read More

  • Capitalism: Good or Evil?

    1868 Words  | 4 Pages

    Capitalism is currently one of the two major economic systems that are being operated among the world. For my interpretation, its basics are privatization and individualism. That is, capitals are privately owned, profit of production is also privatized, and the society exists more on the basis of individuals than of groups. From an economic aspect, we undoubtedly acknowledge that capitalism is making great progress and wealth. As an example, the most powerful country in our time, the United States is a typical capitalist country. Yet, we also cannot deny that this system is causing problems and they are gradually getting widely concerned. Therefore, this controversial issue is often brought into public focus. The question is, is capitalism actually good to keep or it is evil to be replaced?

    Read More

  • The Pros And Cons Of Capitalism

    905 Words  | 2 Pages

    Capitalism is an economic system in which the production and distribution are privately owned, the government involvement is minimal,and there is free enterprise. In Capitalism, the means of production are privately owned and operated for profit in a competitive market. Also the economic investment, ownership and profits are all owned by individuals. Under capitalism the state is separated from the economy, which means that the government has no role in business. In other words, everyone works for themselves. The market forces in a capitalist country runs by supply and demand which it determines the price and later on it turns into profits. Supply is the quantity of goods and services a business is willing to sell, while Demand is the quantity of goods and services consumers are willing to buy. Therefore, Capitalism is the best economic system because it rewards the ones that work hard and since the government does not control trade, there is a large variety of goods and creates options for consumers to fit their personal needs.

    Read More

  • Capitalism and Merit, Ability and Achievement

    1280 Words  | 3 Pages

    Capitalism is the only social system that rewards merit, ability and achievement, regardless of one’s birth or station in life. Capitalism is the only social system that rewards virtue and punishes vice. This applies to both the business executive and the carpenter, the lawyer, and the factory worker. Thomson: Capitalism is the world’s dominant economic system. Within it, the means of production and distribution are owned by individuals: private ownership and free enterprise are believed to lead to more efficiency, lower prices, better products and rising prosperity....

    Read More

More about The Four Types of Capitalism

Open Document