Essay about Capitalism : A Complex Economic And Political System

1050 Words Oct 15th, 2015 null Page
Capitalism is a complex economic and political system involving a nation’s exchange and production that are controlled by private landlords for profit. Capitalism integrates four key institutions, which are the renovation of goods and services for the factors of production, economic freedom being the method of harmonization, liberalism, and the “Spirit of Capitalism.” The four institutions offer explanations on how capitalism influences the behavior of economic actors in the Anglo-Saxon Model through its individualistic model.
First, the commodification in the factors of production addresses the shift that capitalism took when expanding the market. What had once been a market providing a subsistence routine and specialization of employment for citizens had amazingly transformed into others having (legitimate) jurisdiction over employment participations. The expansion in production introduced and increased the possibility of international trade and relations occurring because of demand and competition. Adam Smith justifies that the change was persuaded because the “the mercantile system” was immensely growing at one point in history. Smith also mentions that mercantilism effectively expressed the ideals of merchants and manufactures who formerly were in favor of monopolies (Muller, 70). Other causes of commodification in production were the acceptance in bullionism and the industrial revolution. Bullionism was the theory that a nation’s ownership of rare metals determines a…

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