summary
Economy refers to a way people use their environment to fulfill their needs, also a comprehensive idea including production, exchange, distribution.
Someone makes products and distribute to others, then ecnonmy also starts. Economy and society grow up together. Ancient economy nearly based on subsistence agriculture. Almost barters were made up social relationships, and it also generated traders. Afterward, the ancients codified this model. In the medieval times, their economy was not far from subsistence farming and social group's role was still important. Marco Polo, Christopher Columbus opened the gate of global economy. After this the first trading company was established. Nearly the first economist is Adam Smith. He defined the elements of a national ecnonmy, "supply and demand".
Capitalism started from Europe brought huge economic growth. It is the most representative social system which is used by many other nations. Capitalism is a social system in which capital and means of production are privately controlled. Products and capital are operated by market principle. The first market economy and merchant capitalism were formed between 8th - 12th, full-scale monetary economy was started by the Muslim. In the 13th, many capitalist concepts were generated and developed in Europe. People describe an economic system which is employed between 16th-18th as a mercantilism. Mercantilism is a system trading for profit.
In that period, overseas trades were grow up rapidly so-called "discoveries". Some schoalrs see mercantilism as the earliest step of modern capitalism. During Industrial Revolution, industralists are replaced to merchants, also surplus generated by commerical agriculture carried out merchanization of agriculture's increases.
In the 19th, this period was dominated by an increasing number of oligopolistic firms earning supernormal profits. This period representative capitalism character includes the establishment of large industrial monopolies. By the end of 19th, the great depression took place. Depression affected capitalism world at that time and it generated new discussions about capitalism.
Capitalism is operated by five elements - commodities, money, labour power, means of production, production. Individuals engage in society as a consumer, workers, inventors and they invest both money and labor power. Business firms determine what to produce, how to sell products. They buy capital goods and converted them into consumer goods. In the capitalism society, the price of products and services are determined by supply,demand and competition. Many nations have competition laws and anti-trust laws which prohibit monopolies. Unemployment is a essential component in capitalism society. Without unemployed individuals, investors can't seek to workers who are worth to be paid. In capitalism nation, government regulate many economic functions such as permitting firm's payment.
The most representative critism of capitalism is unfair distribution about wealth and power. Capitalism is regarded as unsafe system which contains latent contradictions. Environmentalists also argued that capitalism demands continual economic growth, and deplete earth's finite resources.
interesting
The materialistic values of capitalism brought a idea that money is the best thing to attention. Even it was developed blind faith that only economic material can determine personal life. From here, human alienation emerges. In order to overcome the problems of capitalism and pursue human welfare, I think we need efforts in ethical aspects as well as economic aspects. First of all, efforts to solve economic problems and improve the economy are needed. This process is possible through democratization of the economy. Rather than limiting economic problems to economic problems, it is necessary to integrate political problem.
Discussion
Social systems are generated and disapperaed constantly. After Soviet Union were collapsed, some of us may think captalism is the only method. On the other hand, the others may think that captalism is just the most efficient way until now, later another system would replace capitalism. How do you think? Is there another better way to replace capitalism?
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