Capitalism: Definition and History Essay

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Introduction

There is an extended numerous of numerous systems and political and economic forms that societies and states can adhere to. Some of these systems can barely be considered positive because ordinary people cannot benefit from them. Others have their own advantages and disadvantages and should be monitored closely to bring good. Some researchers, for instance, consider capitalism to be the greatest and most valuable economic system that creates multiple opportunities and improves the world (Redd 2022). This paper aims to discuss capitalism, provide a synthesis of its definitions, and explain my connection to this system.

My Definition of Capitalism

To begin with, it is essential to notice that there is a vast number of definitions of this economic system that are similar or different to some extent. Noticeably, some researchers either avoid this term because it is rather polemical or prefer not to define it at all (Kocka 2016). A proper examination of these definitions can allow for a creation of an additional one that would reflect my own understanding of this economic concept.

Overall, capitalism may be defined as a political and economic ideology in which the concepts of accumulation, commodification, and decentralization are emphasized, and the main focus is placed on the interests of ordinary people because private actors freely control property, supply, and demand. The first part of the definition is particularly supported by Kocka (2016), who finds the three concepts to be capitalism’s primary and integral characteristics. Further, this system indeed considers the needs and interests of private actors to be of vital importance and does not allow the authorities to control the trade and industry of the country (Baptist and Hyman 2014; Redd 2022). Therefore, it is possible to find the provided definition working and relevant.

Historical Examples

There are some examples that can support the definition provided above. For instance, once Hong Kong adopted the values and characteristics of capitalism, it became much more profitable (Capitalism 2019). Currently, a vast number of businesses and people from China prefer investing and trading precisely in Hong Kong because there are no tariffs on the product that are imported into the country. Further, Singapore can also set the example of an economically developed country that supports competition, transparency, and open economic policies (Capitalism 2019). It was a great and quite effective step for both countries, allowing them to achieve many successes and improve their situations.

My Role in Capitalism

Overall, it is still challenging for me to identify whether I support capitalism. I realize the value of profit, investing, and allowing private actors to control their businesses. At the same time, I believe that markets need rules and should focus not only on increasing their profit but on other significant concepts and objectives as well. One of the side effects of capitalism that I feel is how innovative and upgraded various services and products become because of competition between companies. Finally, since I use the benefits provided by this system, I can probably call myself a capitalist.

Conclusion

To draw a conclusion, one may say that capitalism indeed seems to be a rather valuable, effective, and positive political and economic ideology. It allows private actors to increase their profit, gain control over their assets, and be certain that the authorities will never intervene in their business, price setting, or supply and demand management. As a result, this system indeed allows for the better development of the country and provides numerous great opportunities.

References

Baptist, Edward E., and Louis Hyman. 2014. American Capitalism: A Reader. New York: Simon & Schuster.

Capitalism. 2019. Capitalism.com. Web.

Kocka, Jürgen. 2016. Capitalism: A Short History. Princeton: Princeton University Press.

Redd, Ivey. 2022. Institute for Youth in Policy. Web.

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IvyPanda. 2023. "Capitalism: Definition and History." July 2, 2023. https://ivypanda.com/essays/capitalism-definition-and-history/.

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