The main signs of capitalism

Its signs are of great importance for understanding this or that phenomenon of social life. Capitalism is a system of economic relations based on the rule of the private, entrepreneurial, and profit-oriented. At once it is necessary to make a reservation that the given concept is the name of only ideal model as in any state of the world there is no such way in the pure state.

The origin of the concept

To analyze the features of the economic development of countries in the historical perspective help its signs. Capitalism is a term that has been actively used since the second half of the 19th century. It was first applied in France, then German and English authors introduced it into scientific circulation.

It is interesting that at first it had a negative meaning. Scientists, writers put in this word a negative attitude to the dominance of finance, which was observed in developed European countries in the middle of this century. This concept was especially actively used by representatives of socialism (Marx, Lenin and others).

Theory of the market and the conflict of classes

Characteristics of the development of the economy and trade are helped by their signs. Capitalism is a system based on the free functioning of the market, which serves as an arena for confronting the working class and owners. The first tend to be more expensive to sell their strength, the second - to buy it cheaper. In addition, it is the market that is the main condition for trade, without which it is impossible to imagine the existence of a capitalist way of life. The second important feature of the system is the concentration of the means of production in the hands of the upper classes and the preservation of the labor force for the proletariat.

Between these groups there is a constant struggle for work and wages. This leads to a class struggle, which in a number of states led to revolutions. However, practice shows that the capitalist way is most acceptable for the normal functioning of states, and therefore, from the very beginning of its emergence, it spread quite quickly around the world, capturing almost all spheres of society's life, including politics and culture. The above-mentioned features of the system were singled out by the well-known scientist Marx, who devoted one of his most fundamental monographs to this issue.

The concept of Protestant ethics

To help understand the reasons for the emergence of this new for the Western European history of the way its signs help. Capitalism is not only a special form of organization of production, but also a specific way of organizing society. This is how the well-known German scientist and sociologist Weber examined this stage of economic history.

Unlike Marx, he believed that this system is inherent only in Western European countries. In his opinion, it arose in those states where Protestantism was established, which developed in society a cult of labor discipline, a high degree of social organization, as well as a desire for profit and income. He outlined the following signs of the development of capitalism: the competition of producers, the existence of a dynamic market, the active use of capital in entrepreneurial activity, the desire to obtain maximum profit. And if Marx believed that this way not only affects but also determines the policies of countries, then Weber contrasted these two social spheres, although he acknowledged that they closely adjoin each other.

About innovations

The main signs of capitalism became the object of research of the well-known political scientist and sociologist Schumpeter. He singled out the following features of this system: a dynamic market, entrepreneurship and the domination of private property. However, in contrast to these authors, the economist singled out such an important component of capitalist production as the introduction of innovations. In his view, it is the introduction of innovations that stimulates the rapid development of the economies of countries.

At the same time, Schumpeter attached great importance to lending, which gives entrepreneurs the opportunity to introduce modern technologies and thereby increase production efficiency. The scientist believed that this way ensured the material well-being of society and the personal freedom of citizens, but the future of the system was seen in a pessimistic light, believing that over time it would exhaust itself.

The emergence of manufactories

One of the main prerequisites for the transition from the feudal mode of production to the capitalist one was a departure from the old guild system and a transition to the division of labor. It is in this important change that we must seek the answer to the question of why the appearance of manufactories is considered a sign of the birth of capitalism.

After all, the main condition for the existence and normal functioning of the market is the widespread use of hired labor. In the 14th century, in many European cities, manufacturers abandoned the traditional set of apprentices and began to attract to their workshops people who specialized in this or that craft. This is how the labor market emerged, which, according to Marx's definition, is the main sign of the capitalist way of life.

Types of enterprises

In Western European countries, there were various types of manufactories, which indicates the rapid development and introduction of a new mode of production. Analysis of the problem under consideration (why the emergence of manufactories is considered a sign of the birth of capitalism) makes it possible to understand the ways of economic development. Owners of scattered enterprises handed out raw materials to workers at home, then, already processed, it came to a professional artisan who, after making yarn, gave the material to the next manufakturistu. So the work was carried out by a number of workers who passed the produced goods along the chain. In a centralized manufactory, people worked in the same room, using technology. These different types of enterprises prove the high rate of development of capitalist production on the continent.

Scientific revolutions

Signs of the emergence of capitalism are associated with the peculiarities of the European economy, where the transition to trade began very early, thanks to the development of cities and the formation of markets. A new impetus to the development of the capitalist mode of production was the introduction of new technologies. This brought the economy to a fundamentally new level. The use of machines in factories allowed entrepreneurs to increase the volume of sales of products. Advances in the field of science have led to the fact that the creation of a gross product has become cheaper, since instead of workers, enterprises now use machines.

Of great importance was the invention of the steam engine, electricity, and the construction of railways. The discovery and development of new mineral deposits led to the rapid development of heavy industry and metallurgy. These changes completely changed the urban appearance of Western European countries, as well as Russia, where, after the abolition of serfdom, the rapid development of industry began. So, the signs of capitalism in the 19th century were determined by the introduction of scientific achievements in production.

The emergence of monopolies

During the first stage of development of capitalism, production organizations were single and medium in size. The scale of their production was not wide, and therefore entrepreneurs could solely conduct their own business. In the 19th century the system entered a new phase of development. The volume of production has sharply increased, the factories have expanded, which led to the need to unite the efforts of entrepreneurs. On the basis of the foregoing, it is possible to single out the signs of monopoly capitalism: the concentration of production, the reduction in the number of factories, the emergence of large, capital-intensive enterprises.

At the turn of the century the main role was played by heavy industry: machine building, metalworking, oil production and others. As a rule, the enlargement took place within the framework of one single industry, in which associations such as cartels and syndicates arose. The first concept should be understood as the contract of several independent enterprises, which agree on the price of goods, sales markets and quota. The second term means a higher degree of monopolization, in which firms, while preserving legal and economic independence, organize a single office to sell their products.

Large Forms of Enterprises

The signs of monopoly capitalism make it possible to understand the features of a new stage in the development of this system. The highest form of association of factories, factories and firms are trusts and concerns. The first organizations jointly carry out not only sales, but also production, and also submit to unified management, but at the same time retain financial independence. Trusts are created in any one industry and immediately occupy a leading position. Concerns are considered the most developed form of association. They are formed in related industries and have unified finance.

The merger of capital provides for faster and more efficient integration, in contrast to the above forms. The signs of capitalism in the 20th century testify to the development of this system through its entry into a new, higher phase of its development, which enabled scientists to talk about the onset of the phase of imperialism, which is characterized by the merger of banks and production.