CAPITALISM

NINA JESHA CLACIO -

reporter
CAMELLA HERNANDEZ - AR
MONICA MACALE
JOAN DELA PASION
MYRA ICARO
JOHN PAUL AVELLANA
 HOW CAPITALISM IS
DEVELOPED
 Capitalism is an economic system that
emerged in north-west Europe during
the sixteenth and seventeenth centuries
 Adam Smith, David Ricardo, James
Steuart- created a discourse that
explained the logic, origin and the
essential of capitalism
 HOW CAPITALISM IS
DEVELOPED
 These writers downplayed a crucial
requirement for capitalism`s creation:
“For it to succeed, peasants would
have to abandon their self sufficient
lifestyle and go to work for wage”
 Micahel Perelman- Professor of
economics at California State University
 HOW CAPITALISM IS
DEVELOPED
- shows that peasants were forced into the
factories with the active support of the same
economists
-these economists advocated government
policies that deprived the peasantry of the
means for self provision in order to coerce
small farmers into wage labor contradicting
the laissez-faire principle
 HOW CAPITALISM IS
DEVELOPED
 Laissez-Faire/Free Market

-purest from of capitalism

- economic doctrine of non-
interference that opposes government
involvement in commerce
 HOW CAPITALISM IS
DEVELOPED
 Perelman examines diaries, letters, and
the more practical writings of classical
economists
 He also argues that these private and
practical writings reveal the real
intentions----- to separate a rural
peasantry from their access to land
 HOW CAPITALISM IS
DEVELOPED
 Capitalism grew out of European
feudalism. Less than 5% of
population of Europe lived in towns
 BLACK PLAGUE- one of the most
devastating pandemics in human
history
 HOW CAPITALISM IS
DEVELOPED
 By killing scores of people, the various
plagues of the Dark Ages actually
created a labor shortage
 Nobles fought to hire enough serfs to
keep their estates running and many
trades suddenly needed to train
outsiders
 HOW CAPITALISM IS
DEVELOPED
 Wages offered by the trades
encouraged more people to move into
towns where they could get money in
exchange for labor
 Birth rates exploded, had an extra
children who, without land to tend,
needed to be put to work
 Child labor was part of the economic
development
 CAPITALISM
 From Latin word “capitalis” which means
“head of cattle”

 First used in English by the novelist William

Thackery in his 1855 novel “The Newcomes”
that conveyed a sense of concern about
personal possessions and money in general
 CAPITALISM
 The motive for producing goods and services is to
sell them for a profit, not to satisfy people`s needs

 Social system dominated by economic relations,

particularly market relations

 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
 CAPITALISM
 Underlying theme was the use of wealth to
create more wealth

 Adam Smith- Father of Modern

Capitalism
- believer in free market
economy
- his ideas for free market
opened the world to capitalism
 MARXIST
PERSPECTIVE
 Capitalism was discussed a bit by a Sociologist
named Karl Marx

 MARXIST PERSPECTIVE- capitalism is

organized around the concept of CAPITAL (the
ownership and control of the means of
production by those who employ workers to
produce goods and services in exchange for
wages)
 MARXIST
PERSPECTIVE
 The key to capitalism as a social system is a set
of three relationships:

1. WORKERS
2. THE MEANS OF PRODUCTION (factories,
machines, tools)
3. THOSE WHO OWN OR CONTROL THE
MEANS OF PRODUCTION
 CLASS DIVISION
 CAPITALIST CLASS- a small minority of people who
owned or/and manipulating the means for
producing and distributing goods (the land,
factories, technology, transport system, etc.)
 WORKING CLASS- paid to produce goods and
services which are then sold for a profit
- sell their ability to work in return
for a salary or wage