Capitalism Defined

1. Economic systems determine what to produce, how to produce and who will receive production.
They must also adapt to changing economic environments.
How will America's economic system adapt to changes caused by 9/11 is an example.

2. Adam Smith described early market based Capitalism
in his 1776 book The Wealth of Nations described 18th century English capitalism.
See Why is The Wealth of Nations So Important? A video from  econlib.org/ Provided by textbooksfree.org

3. Capitalism Characteristics Begin With Profit  and (" Laissez-faire "). 
The important Creative Destruction ingredient was observed by mid-20th century sociologist and economist Joseph Schumpeter.
It involves the process of technology and improved economic structures replacing inefficient economic structures.
The resulting unmatched economic efficiency has led to confrontation among owners, labor, management and government as to who gets resulting income. For his thoughts read Dynamic Economics and listen on YouTube to Schumpeter.

 For handouts, pdf version     See Our Democratic Federalist Republic    provided by  www.textbooksfree.org/
 

Part 1 Modern Capitalism     Part 2 Other Economic Systems

Part 3 Current National Economic Policies   See Our Democratic Federalist Republic

Modern Capitalism has increasing world-wide competition necessitating up-to-date technology, complex capital goods and
a decreasing number of specialized well-trained employees from around the world. 

Economic Rent Seekers increase their wealth using politics. Their influence has replaced that of monarchs and
clergy during capitalism's development.

Examples include:
1. Corporate Capitalism\ dominated by hierarchical, bureaucratic corporations

2. State Capitalism driven by government as practiced in China,

3. Money Manager Capitalism creates and distributed economic rent using financial markets and

4. Crony Capitalism\  which began in "the garden" many years ago with Corporate Welfare. Source

5. Pure Capitalism described by Adam Smith has never been completely put into practice.
    Instead there have been Mixed Economies combining capitalism and socialism.

Criticism of Modern Capitalism
Ida Tarbell a Muckraking investigative journalist exposed Standard Oil Trust atrocities. Writing for McClure Magazine and other monthlies,
Muckrakers educated the public from 1890 to 1929 Progressive Era. This era demonstrates how the US democratic federalist republic has slowly
catered to personal liberty over property interests.
Michael Moore, a modern day investigative journalist, has been critical of capitalism and capitalists. Some question his estimated $50 million net worth.
Philosophical Criticism Readings
Why Intellectuals Hate Capitalism, Is Capitalism Moral?
A Commonwealth Club Podcast, Coercive Power of Capitalism,
Capitalism and Inequality

Political Criticism Readings
Our Democratic Federalist Capitalist Republic
Turning Points in America's Democratic Federalist Republic
Political Economy Readings
Why China Does Capitalism Better than the US, Hoodwinked
Confessions of an Economic Hit Man Reveals Why the  World Financial Markets Imploded- 
and What We Need to Do to Remake Them
How Will Capitalism End
Has Capitalism Reform Reached a Turning Point
Revisiting Old Argument About Impact Capitalism, Economic
Report of the President 2014 is positive,
The Great Recession

Democratic Socialism as practiced in Western Europe had public ownership of
key industries such as transportation and communication.
Western Europe economies began moving away from socialism
toward capitalism in the late 1970's. The change began with England's
Prime Minister Margaret Thatcher soon followed by US President
Ronald Reagan. Capitalism vs. Socialism is a Crash Course Video
explores government basics as  does Laissez fair Capitalism vs. Socialism.
See Social Democracy.

Communism is the ideal of those practicing a "Marxian System."
It was designed by 19th century philosopher Karl Marx.
Wealth is collectively owned and managed with a planned command economy.
The Paris Commune government that led to the anarchy the late 18th century
French Revolution has caused many governments and wealthy individuals
to fear changes promised by liberal economic systems. Some equate communism
with a totalitarian political system as a democratic communism has never existed.

Fabian Economics of British socialist organizations were gradualist.
These reformists did not want revolution. In Russia Bolshevik revolutionists eventually
won political support over Menshevik gradualists.

Feudalism structures society around holding land relationships in exchange for service or labor.

New Feudalism refers to a theorized contemporary rebirth of governance, economy
and public life reminiscent of a feudal society.

Traditional economy is directed by custom.

Oligarchy is when power rests with a small number of people who may be distinguished
by royalty, wealth, family ties, education, corporate, religious or military control. US?

Plutocracy is when wealth rules. Used by developing countries, Plutocrats vs. Populist
is controversial.  American Dynasty summarizes the Bush family plutocracy.

Kleptocracy exists to increase the personal wealth and political power of government officials. Russia?

Theocracy has deity recognition

For more visit textbooksfree.org/Quick%20Notes%20History.htm

Abbreviated from Economics 3_Basic Characteristics_of_Capitalism