Evolution of Capitalism And the Social Responses

Capitalism An economic system Also a cultural system Characterized by innovation and investment to increase wealth Also a cultural system Rooted in the need of private investors to turn a profit

Supply and Demand Supply High Demand Low = $ Supply Low Demand Low = $$ Supply High Demand High = $$ Supply Low Demand High = $$$$$$

Mercantilism The process of making money from selling finished products Merchants would often borrow money to buy the goods they need to produce the product which would be sold for a profit Monarchs and nations would pull resources out of their colonies to support this money making venture

Middle-Ages Most people were farmers Most of the rest were nobles Small fraction were merchants Guilds awarded royal charters dominated trade and labour and there was little to now competition

Age of Exploration/Exploitation Western European countries gained access to new lands and valuable new resources Initially only monarchs could afford to fund expeditions Soon merchants began to pool their money together to fund their own expeditions – the beginnings of Joint-Stock companies

Mercantile Capitalism Merchants began to become wealthier but there are still only a few capitalists Most people are still peasant farmers with no interest in buying luxury goods Supplies are growing but demand is moderate because only a few nobles can afford to buy the goods

Mercantile Capitalism Created many unintended evils such as slavery and the decimating of Aboriginal societies for land Most Europeans were unaware and little was done Abolition movements began to gather momentum Slavery would eventually be outlawed Olaudah Equiano

Industrial Capitalism An economic system that relies on investment of capital in machines and technology that are used to increase production of marketable goods Spurned on by the Industrial Revolution Innovations in technology meant that products could be produced on a larger and faster scale Costs to production fell Products could be sold for less More people could afford the products More money was made by the merchants

Industrial Capitalism Developed first in Britain Britain’s advantages Dominant power on the seas Good money off of trade with its colonies Tea, cotton, tobacco, sugarcane, spices, slaves Large reserves of coal English Civil War had removed a lot of regulations on the economy that had existed under the king – these regulations were still in place in other European countries

Capitalism as Culture Idea emerged that people are both consumers and producers For capitalism to work people need to buy stuff The way people thought had to change The word individual did not apply to a person until the 17th century

Land Enclosures In the Middle Ages (Land)Lords made money from peasants working the land for them In the 18th and 19th centuries landlords could make more money from animals (sheep, cattle, etc.) and found ways to kick people off their land These landless poor made their way to cities looking for work Created a surplus of workers for the new factory owners to exploit…kept wages low

Industrialization and Urbanization City populations grew rapidly Living conditions were horrible Many new towns grew up around factories which in turn were built close to coal mines The majority of the population lived in poverty, misery, and pollution

Industrial Era City

Living Conditions

Living Conditions

Living Conditions

Stages of Communist Takeover - Theory Class conflict between Bourgeoisie and the Proletariat Alienation, exploitation, miserable conditions vs. wealth & greed Revolution Occurs Dictatorship of the Proletariat and end to opposition State (rulers) whither away Communist Society will exist, an ideal classless society without private property, and free from exploitation and want