Meaning of Capitalism

Meaning of Capitalism By capitalism we mean that economic system under which all farms, factories and other means of manufacture are the possessions of personal firms and individuals. They are open to utilize them with a outlook to building profit or n

Meaning of Capitalism

Capitalism has been operating in the majority of the nations all over the world. With the exclusion of Eastern Europe, which includes China as well as the U.S.S.R, it is capitalism which wins through in the remaining part of the universe. Great Britain and the United States of America may be regarded as the home of capitalism.

Meaning of Capitalism

By capitalism we mean that economic system under which all farms, factories and other means of manufacture are the possessions of personal firms and individuals. They are open to utilize them with a outlook to building profit or not to utilize them if it works well with them. Instruments of production, in other words, are owned and managed by their owners exclusively in their own interest. The yearning for revenue is the only reflection with the goods owners when they deal with their property in any manner. Everybody is open to take up any line of production he likes and he is open to go into into contracts with new fellow inhabitants for his income. Although the modern States do impose certain restrictions on economic freedom of citizens in the interest of general welfare, yet even these restrictions leave a very wide latitude for the propertied classes to use their property in any manner they like, to start any business that they think most profitable to themselves, and to enter into any contracts they think necessary to advance their own interest.

The definition of capitalism given by the Webbs brings out the necessary implications of the system. They define it thus: By the term capitalism or the capitalistic system or, as we prefer, the capitalist civilization, we mean the meticulous phase in the growth of business and legal organizations in which the vastness of the workers find themselves separated from the rights of the devices of manufacture in such a method as to pass into the spot of wage-earners whose survival, safety and individual liberty seem reliant on the force of a comparatively small percentage of the country, specifically, those who possess land, through their lawful possession, organize the association of the land, the equipment and the labor strength of the society and do so with the purpose of building for themselves personal and private growth.

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