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==Overview==One self-regulating feature of capitalism is competition, which helps maintain fair market value for goods and services. However, In standard [[Marxist historiography]] ''unrestrained'capitalism' or ''pure'' capitalism may sometimes create a positive feedback loop in which a small number is the [[mode of individual accumulations of capital grow ever larger, eventually becoming so few as to limit effective competition, thus ceasing to strictly be free-market capitalism. In this regard, pure capitalism is unstable. Modern political systems have developed regulation mechanisms in an attempt to render capitalism more stable, including anti-trust regulation, trade tariffs, etcproduction]] that follows [[feudalism]] and precedes [[socialism]].

Since the fall of [[communism]], and the advent of information technology, capitalism Capitalism is becoming increasingly widespread.characterized by:* factory production* money exchange* private ownership* wage-labor* profit-making* production for exchange (commodities)

[[Adam Smith]] described Capitalists realize that the operation market is inefficient and chaotic, and will try to form somewhat of capital accumulation through a planned economy amongst themselves. For instance, in 2012 Barclays, UBS, Citibank, the productive powers Royal Bank of labor as suchScotland,{{Cquote|Whatever a person saves from his [[revenue]] he adds to his [[capital]]Deutsche Bank, and either employs it himself in maintaining an additional number of productive handsJP Morgan, or enables some other person were all found to do so, by lending it have fixed interest rates to him for an interest, that is, for a share of the make bigger profits. As Another example is British Airways and Virgin Atlantic in the capital of an individual can be increased only by what he saves from his annual revenue or his annual gains, so the capital of airline industry a societycouple years later; also Grolsch, which is the same with that of all the individuals who compose itBavaria, can be increased only and Heineken in the same manner.<ref>Adam Smithbrewing — Sainsbury’s, ''An Inquiry into the Nature Asda and Causes of the Wealth of Nations'', [http://wwwother supermarkets.econlibAll these were found to have colluded on prices in order to secure larger profits.org/library/Smith/smWN.html Book II, Chapter 3, Paragraph 15,] ''Of The reason for these scandals is because these companies recognize that planning is a more efficient way to run the Accumulation economy than leaving it to the anarchy of Capital, or of Productive and Unproductive Labour'', First Edition 1776the free market.</ref>}}

Smith goes on to describe how the productive powers of labor employed by the owner of ==History=====The Business Plot===This is a capital allow laborers to reproduce supposed plot in which American fascists, with a profit the value of their maintenancewhom major industrialists collaborated, over and above their own consumption, which then allows for an additional set of hands planned to be employed.<ref>Adam Smith, ''Wealth of Nations'', Book II, Chapter 3, Paragraph 22.</ref> Smith observes labor is the original purchase price for all the wealth of the world,overthrow [[Image:Eco Pillars.jpg|right|400px|thumbnail|The [[free enterpriseFDR]] system in [[United States of and make America|America]] before [[liberals]]a dictatorship, [[Republican in name only|rinos]], response to the weakness of capitalism and/or members of the [[progressive movement]], such so as President [[Barack Obama]], eroded America's [[economics|economic]] freedom and prosperityto preempt a socialist uprising. Former president [[Obamunism|Barack Obama]] created [[National debt of the United States|massive Federal government debt]], which upset the system.]]{{Cquote|The real price details of every thing, what every thing really costs to the man who wants to acquire it, is the toil this theory are rather murky and trouble of acquiring it. What every thing evidence is really worth hard to the man who has acquired gather, however itdoes seem that while indeed, and who wants to dispose a group of it or exchange it for something else, is the toil people did come together and trouble which it can save to himselfdiscuss such a plot, and which it can impose upon other people. What didn’t develop into anything much more – it is bought with money or with goods is purchased by labour, ²<ref>'Everything in not as serious as some proponents of the world is purchased by labourtheory may claim.'—HumeRegardless, 'Of Commerce,' such a plot certainly was in Political Discourses, 1752, p. 12</ref> as much as what we acquire by the toil way of our own body. That money or those goods indeed save us this toil. They contain the value capitalists, who were anxious of a certain quantity of labour which we exchange for what is supposed at the time to contain socialist revolutions occurring abroad and worried that such movements could reach the value of an equal quantityUnited States. Labour was the first priceIn history, the original purchasefar-money that was paid for all things. It was not by gold or by silver, but by labour, that all right wing dictatorships are the wealth clear preference of the world was originally purchased; and its value, bourgeoisie to those who possess it, and who want to exchange it for some new productionssocialism, as is precisely equal to exemplified in the quantity of labour which it can enable them Nazi rise to purchase or command.<ref>Adam Smithpower, ''An Inquiry into the Nature and Causes of the Wealth of Nations'1973 Chilean coup d'état, [http://www.econlib.org/library/Smith/smWN.html Book I, Chapter 5, Paragraph 2,] ''Of or any other dictatorship supported or established by the Real and Nominal Price of Commodities'', First Edition 1776United States (as well as the local bourgeoisie) in response to the "domino theory".</ref>}}

Real wealth consists not in money, but in the ==Capitalism cannot function without a state==Capitalism requires a state to give it things like bailouts as well as tax money will exchange forvarious purposes,{{Cquote|In order to put industry into motion, three things are requisite; materials to work upon, tools to work with, and the wages such as for economic stimulus or recompense for funding stock buybacks. Furthermore the sake of state has a military and police force — coercion in general, which defends the work is done. Money is neither a material to work uponinstitution of private property, nor a tool and with this uses coercion otherwise to work with; and though maintain the wages of capitalist system. Without the workman are commonly paid to him in money, his real revenue, like that of all other men, consistsstate, capitalism will not in money, but in recover from the money's worth; crises inherent to it and eventually give way to a different economic system which may not in preserve the metal piecesprevious capitalist class, but in what can be got for themsuch as socialism.<ref>Adam Smith, ''An Inquiry into the Nature and Causes of the Wealth of Nations''For this reason, [http://www.econlib.org/library/Smith/smWN7.html Book II, Chapter 2, Paragraph 37,[anarcho-capitalism]] ''Of Money Considered is unviable as a particular Branch of the General Stock of the Society, or of the Expence of Maintaining the National Capital ''it seeks to remove an aspect to capitalism which realistically is essential to it, First Edition 1776thus being dramatically more unstable than regular capitalism.</ref>}}

Since ==The wealth does not consist in money, gold, or silver, and labor is development of capitalist nations as purported proof of the original purchase price, Smith explains how success of capitalism==In the capitalist system is then put into motion, complete with natural incentivescases of South Korea and Taiwan, only Smith does not use the word "capital" here communist example of giving land to describe what is neededthose who till it (e. Smith explains how a "store g. when the troops of goods"the DPRK entered the South, or "stock sufficient the South made concessions by beginning to distribute land to maintain" the original capitalist entrepreneur is necessary;{{Cquote|When landless) compelled the stock which a man possesses is no more than sufficient Americans to maintain him for a few days or a few weeks, he seldom thinks of deriving any revenue promote land reform in both countries in order to prevent unrest and promote economic growth. Every single impoverished/broken country that became developed under capitalism also has had heavy investments from it. He consumes it as sparingly as he canthe US, and endeavours by his labour in the cases of Japan and South Korea they both had "paternalistic" governments that actively intervened to acquire something which may supply its place before it be consumed altogether. His revenue isgrow their economies via protectionist measures, in this caseconsolidation, derived from his labour only. This is the state of the greater part of the labouring poor in all countriesetc.

But when he possesses stock sufficient to maintain him for months or yearsTo quote Marx in the Manifest of the Communist Party:<blockquote>The bourgeoisie, he naturally endeavours to derive a revenue from by the greater part rapid improvement of all instruments of production, by the immensely facilitated means of communication, draws all, even the most barbarian, nations into civilisation. The cheap prices of commodities are the heavy artillery with which it; reserving only so much for his immediate consumption as may maintain him till this revenue begins batters down all Chinese walls, with which it forces the barbarians’ intensely obstinate hatred of foreigners to come incapitulate. His whole stockIt compels all nations, thereforeon pain of extinction, is distinguished to adopt the bourgeois mode of production; it compels them to introduce what it calls civilisation into two partstheir midst, i.e. That part which, he expects, is to afford him this revenuebecome bourgeois themselves. In one word, is called his capitalit creates a world after its own image. The other is that which supplies his immediate consumption <ref/blockquote>Adam Smith, There''An Inquiry into s nothing Marx or Lenin wrote that suggests every poor country would remain that way. But it is imperative to note that alongside Japan, South Korea, Taiwan and Singapore are Myanmar, the Nature Philippines, Papua New Guinea, and Causes of Malaysia (among others), i.e. countries that clearly aren't considered prosperous by the Wealth standards of Nations'showpieces like Japan or Singapore.Capitalism can't make the whole world prosperous, [http://wwwnor can it eliminate unemployment and the inherent tendency toward economic crises.econlib.org/library/Smith/smWN7.html Book IIIt can make certain countries prosperous, Chapter 1at the cost of growing contradictions between these countries, Paragraphs 1 & 2the development of imperialism,] ''Of and the Division consequent imperialist wars for a redivision of Stock the world'', First Edition 1776s markets.</ref>}}

The [[division ==On the supposed quality of labor]] is the necessary condition that gives rise capitalism to be the productive powers of labor that allows for large scale economic growth. By "division of labor", Smith is referring to "specialization of labor", where each worker acquires specific knowledge to apply to a specific task.most innovative=={{Cquote|In that rude state of society in which there is no division of labour, in which exchanges are seldom made, and in which Plentiful innovation has been observed under every man provides everything for himselfsystem, it is not necessary that any stock should including under socialism such as may be accumulated seen in the Soviet space program or stored up beforehand in order to carry on the business of the societyCuban medical advances. Every man endeavours to supply by his own industry his own occasional wants Advances have occurred in feudalism as they occur. When he is hungrywell, he goes to where for instance the forest to hunt; when his coat windmill was developed. Innovation is worn out, he clothes himself with the skin of the first large animal he kills: and when his hut begins to go in no way exclusive to ruincapitalism, he repairs it, as well as he can, with the trees and the turf that are nearest it. But when the division of labour has once been thoroughly introducedif anything, the produce of a man's own labour can supply but a very small part of his occasional wants. The far greater part its particular brand of them are supplied by innovation compels largely the produce creation of other menuseless trendy garbage that doesn's labour, which he purchases with the produce, t have much social or, what economic value and meaning. Though it is true that capitalists have the same thingincentive to outcompete their competitors, with the price of the produce of his own. But this purchase cannot be made till such time as the produce of his own labour has not only been completed, but sold. A stock of goods of different kinds, therefore, must be stored up somewhere sufficient is more trouble than it’s worth given that this inevitably leads to maintain him, increased exploitation and to supply him lesser-quality products made with the materials and tools lots of his work till such time, at least, as both these events can be brought aboutshortcuts. As the accumulation The vast majority of stock must, in innovation comes from people who naturally have innovative tendencies that have the nature of means to construct and develop things, be previous to the division of labour, ...in order to give constant employment to an equal number of workmen, an equal stock of provisions, and Innovation is something innovative people do as a greater stock form of materials and tools than what would have been necessary in a ruder state expression of thingstheir essential selves, must which under socialism will be accumulated beforehand.<ref>Adam Smithmuch better off as there will be increased cooperation among people, ''An Inquiry into for instance through the Nature and Causes socialization of the Wealth "intellectual property", on top of Nations'', [http://www.econlib.org/library/Smith/smWN7.html Book II, Introduction, Paragraphs 1, 2, & 3] ''Of the Nature, Accumulation, and Employment a more reasonable distribution of Stock,'', First Edition 1776resources.</ref>}}{{Cquote|When the division Characteristic of labour has been once thoroughly establishedsocialism is also universal education, it is but a very small part of a man's wants which would further develop genuine innovation, and the produce removal of his own labour can supply. He supplies the far greater part of them by exchanging profit motive means that surplus part of the produce of his own labour, which is over and above his own consumption, people could create advancements for such parts of the produce good of other men's labour as he has occasion for. Every man thus lives by exchanging, or becomes in some measure a merchant, and the society itself grows to be what is properly a commercial society.<ref>Adam Smith, ''An Inquiry into rather than the Nature and Causes greed of the Wealth of Nations''individuals, [http://www.econlib.org/library/Smith/smWN7.html Book I, Chapter 4, Paragraphs 1] ''Of the Origin and Use of Money'', First Edition 1776who will not be so pressured to think about their own essential needs first as they would have been met.</ref>}}

==Capitalism and Society==[[Image:Ludwig von Mises.jpg|thumb|100px|Ludwig von Mises]]HistoricallyInnovation occurs despite capitalism, capitalism has fostered freedom and an increase in the standard not because of living and human rights, and vice versa. Societies that have tried non-capitalist systems inevitably fall into tyrannyit.

For example, [[Venezuela]], while not a perfect country before [[Hugo Chavez]], had freedom ==Longevity extension==There have to be constantly developed new methods and wealth unprecedented technologies in its historyorder to keep capitalism from collapsing for good. As Chavez has nationalized industriesHowever, he has also centralized power for himselfthese tend to eventually get spent up, becoming a dictatorthus requiring new methods and technologies to either supplant or replace them, and in essence merely delay the collapse of capitalism. Examples of such include:*Keynesianism*Credit cards*Negative interest rates*Quantitative easing*Stock repurchases*Bailouts to financial companies

Capitalist societies also generally have higher standards of living compared ==Inability to their non-capitalist counterparts in terms of per capita GDPbe reformed==No matter how many social safety nets are created, education, healthcareno matter how many regulations are imposed, there will continue to be class struggle between capitalists and poverty ratesworkers in a capitalist society — this quality is practically inherent to such. [[China]]The capitalist ruling class makes use of the bourgeois state to block, for instancediminish, has been growing extremely prosperous since it began opening its economy to and eventually discard reforms, as incentivized under capitalism in the 1980s.

However, capitalist societies also Social democratic parties sit at the crux of the capitalism versus socialism spectrum and have seen progressively larger gaps between strong tendencies to break apart towards either of the upper two. In Europe, during the mid-late 1940s, the social democratic parties developed distinct left-wings and middle classes developright-wings, such as wherein those on the United States where right were more so interested in attempting to reform capitalism and defend the top twenty percent owned eightyexistence of the bourgeoisie, while the left-seven percent wing social democrats agreed with the socialists that the means of production are to be socialized and a worker’s state be established. Thus the financial wealth socialist and eighty percent left-wing social democrats merged into a single party, as had occurred in East Germany, Poland, and Hungary; that, or those kinds of social democrats simply joined the total wealthsocialist parties, despite having as had been the largest GDP case in Romania, Bulgaria, and Czechoslovakia. At that time social democratic parties were still Marxist-oriented and explicitly identified themselves with the worldworking class, so merging with or joining the socialists wasn’t a stretch. Of course, the right-wing social democrats triumphed in other areas and dropped any references to Marxism, as the West German SPD had done in 1959, on top of tending to remove any reference in their party line to being a worker's party.

==Defeating PovertyWealth taxes==Thanks to CapitalismWealth taxes, billions of people have been able to pull themselves out of poverty. Capitalism has lead to the greatest reduction in human misery. <ref>https://www.prageru.com/video/if-you-hate-poverty-you-should-love-capitalism/</ref> As capitalism provides more opportunities democracies, are doomed to peoplelargely fail, as research has shown that when people earn their way out of poverty it is much more empowering capitalists are under pressure from shareholders and enduring than being supported by competitors to continuously increase profits – if the government. <ref>https://www.prageru.com/video/there-is-only-one-way-out-of-poverty/</ref> == Quotes == “Historical evidence speaks with a single voice on the relation between political freedom and a free market. I know of no example in time or place of a society state begins to mandate that has been marked by a large measure portion of political freedom, and that has not also used something comparable investments instead go to a free market to organize the bulk of economic activity.” "Underlying most arguments against the free market is a lack of belief in freedom itself."--[[Milton Friedman]]social programs, Capitalism many capitalists and Freedom, 1962.  "If an exchange between two parties is voluntary, it businesses will not take place unless both believe they will benefit from it. Most economic fallacies derive from leave the neglect of this simple insightjurisdiction, from the tendency particularly if they are unaccustomed to assume that there is a fixed pie, that one party can gain only at wealth taxes like in places such as the expense of anotherUnited States." --[[Milton Friedman]]Even in social democratic nations like in Europe, Free to Choose “Capitalism is essentially their social safety nets are being eroded away as the economic system of poor people. That’s what allowed tendency for the people that came from humble origins rate of the world profit to have economic rights the way only nobility and the high bourgeoisie had it beforefall digs into welfare benefits. So capitalism is essentially In a tool for poor people to prosper.”—Hernando de Sotoplanned economy, PBS Interviewhowever, March 30–31, 2001 (cf: [http:capitalists could largely be convinced//www.americansolutions.com/General/?Page=026a3bda-755c-45d8-84d3-c68eef294612 Values - Free Enterprise]) "The only real cure for poverty is production". [[Henry Hazlitt]], from ''Man vs. coerced to have their businesses remain in the Welfare State''. "The first condition for country through the establishment wide-scale leveraging of perpetual peace is synergies available to the general adoption of the principles of laissez-faire capitalism."—Ludwig von Mises, The Ultimate Foundation of Economic Science "There are two methodsstate — either that, or means, and only two, whereby man's needs and desires can be satisfied. One is the production and exchange of wealth; this is the economic meanscapitalists have their businesses bought out/taken over outright. The other In any case, a liberal democracy is the uncompensated appropriation of wealth produced by others; this is the political means."—Albert Jay Nock, Our enemytoo decentralized to have a proper grip onto its capitalist class, which rather rules the State "Businessmen are the symbol of a free society — the symbol of America."—Ayn Rand == See also ==* [[Austrian economics]]* [[Capital]]* [[Free Enterprise]]* [[Ludwig von Mises]]* [[Enterprise]]* [[Planned economy]]* [[Socialism]]* [[Welfare state]] turns to [[Nanny state]] turns to [[Police state]]* [[Benefits of capitalism]]* [[Vulture capitalist]] ==External links==*[http://wwwif anything.capmag.com Capitalism Magazine]*[http://www.aim.org/wls/category/capitalism/ What Liberals Say - Category: Capitalism], [[Accuracy In Media]]

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