Capitalism

From Geography

Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned. Under capitalism the state is separated from economics (production and trade), just like the state is separated from religion. Capitalism is the system of of laissez faire. There's no intervention or structuration from above, like government or NGO's. It is an improvery over slavery and feudalism, but there are still contradictions and inequalities (Schumpeter, 1994). In practice means this most of the time that te people with money, power, knowledge etc rule the society. They are the important figures who have the power to create or institute things, or not. They are mighty and don't follow they're rules often mean that you will be the outcast of a society. So, a few people have the power and the money.

Capitalism though has changed in todays globalised world. Capitalism is an dynamic process which is in 2010 becoming faster and faster. In this time and space shrinking period there is accumulation and an increase in the number of countries who are capitalists. The circulations are faster and more often, because of the principle: "time is money and delays are costly". This will also lead into an increase of consumptions, and unfortunately when commodities are bought people forget about the circumstances they've been produced in (Went, 1996).

Founding father of todays capitalism is Karl Marx (1818-1883). His theory was about unfairly economic distinctions in society between lower class people and upper class people who where dominating and exploiting the people from the lower classes (Van der Velde, 2008). In other words, there's a "battle of classes". And, according to Marx, there will be a point in the future where the frustration of the lower class people becomes so high that it will arise a revolution. A revolution from a society based on differences, inequalities and exploiting from lower class through upper class people into a society of equal political and socio -economical rights with welfare to be more important (Van der Velde, 2008). Concrete said from a more capitalist society to a more communist society, where everybody is equal.

References:

Schumpeter, J.A. (1994). Capitalism, Socialism and Democracy. Routledge, United Kingdom.

Velde, S. van de (2008). Marx, de analyticus van het kapitalisme. 125 jaar Marx, denken over zijn betekenis van de 21e eeuw. Aksant, pp. 46 - 51, Amsterdam.

Went, R. (1996). Grenzen aan de globalisering. Het Spinhuis, Amsterdam.

By Luuk Robers & Paul Leemans