Understanding Capitalism (Part 4)

There are several other economists who are support of free market economic system. Among them there is James Steuart documenting his thoughts in the book “An Inquiry into the Principles of Political Economy” (1767). There is also James Mill and John Stuart Mill whose a book entitled “The Elements of Political Economy” (1819). John Stuart Mill himself also wrote a book entitled “Essays on Some unsettles Question of Political Economy” in 1844 and “The Principles of Political Economy with Some of Their Implication to Social Philosophy” in 1848. These figures are economists and politicians who basically has one view the concept of political economy especially liberal capitalism (Deliarnov, 2006: 24).

image source: oceaneclipse.com

Basically capitalism oriented to the collection of individual capital. Capitalism is based on the principle of private property. In capitalism, labor and other factors of production are owned by the capitalist or the holders of capital. The capitalist has the authority to exploit the capital and its resources to generate private profit (Ritzer, 2005: 493).

In general, the capitalist system includes a money investment, market expansion, industry innovation, maximize productions goods and minimize production costs. For its proponents, the capitalist system is considered capable of making the economy is growing rapidly (McNally, 1990: 87).

The history of capitalism system was begun in the 18^thcentury in Europe. The implementation and development of this capitalist system drove very fast moving of the industry. The rapid industrial development triggered the industrial revolution in England in the late 18th century. Other countries that followed to implement capitalism in the country showed the same effect. Industry, trade and investment was growing rapidly. At the end of the 18th century, capitalism spread to America and almost all over the world. Industry was growing rapidly in these countries. Showed that capitalism was successfully developed (Fulcher, 2004: 6, 8). It could be said that capitalism succeeded in bringing industrial development worldwide. The progress of the world economy beginning of the development of capitalism.

The ideology of capitalism can be referred to as the foundation of the emergence of liberalism ideology. This is because capitalism also mention in the talk about freedom or liberal. Ideology focuses on the concept of economic capital, whereas liberalism growing emphasis on the political aspects. In liberalism also talk about aspects of political, social, and economic (Rohmann, 2000: 231).