Capitalism Essay

6049 words - 24 pages

Capitalism - the best solution of the modern economy or the best way to
get rich
The Bucharest Academy of Economic Studies
18 pages

- 2 -
Foreword
Since the fall of the communist regimes in Europe, capitalism has been the
succeeding ideology and still remains the main form of politics in today's world. Also,
the revolutionaries who militated for the fall of the communist regime were impelled
by the capitalist dream. The current essay aims to express a new vision upon
capitalism, a vision which appeared fairly recently, and which was brought into view
after the appearance of the economic crisis in 2007, which in my opinion, represents
the future of economic thinking. The following words will try to picture the reality in
which we live in, from the complex perspective of economical psychology. Hundreds
and maybe thousands of economists have tried in the period previous to the crisis to
explain mathematically, statistically and economically the reason why so many
people were left without jobs, why wealthy people's fortunes decreased, why the
wages have gone down and how it was possible for a global recession to occur.
Although the veracity of these calculi is not to be contested, there is still a question
whether our life can be governed by numbers. Is it really that our thoughts can be the
result of a mathematical algorithm? Quite often it is, because there are surveys,
economical studies and analyses that illustrate the rational behaviour of economic
agents, based on their preferences. However, what happens when this behaviour
becomes irrational? This is the point at which mathematics fails to provide an
explanation. We are not prepared to accept and analyse the consequences of
economically irrational behaviour. Therefore, the conclusion of the essay will refer
strictly to these consequences. Economic psychology is a field that hasn't been
researched as much as others, although in my opinion, its study would lead to more
accurate answers about the causes of world crises.
George Akerlof, winner of the Nobal Prize in Economics, together with Robert
Shiller explained in their book 'Animal Spirits' the way in which human psychology
influences global economy, and therefore, capitalism. It is one of the few books
which study this field of economical psychology, and its year of release, 2009,
proves its recent character.
Although it might only be an illusion, I will proceed to demonstrate that this
freedom that capitalism offers has released the haunter behaviour specific to the

- 3 -
modern capitalist. This behaviour is in fact the key to the biggest issue of the actual
system: exaggerated trust in the rationality of economical behaviour of the modern
capitalist.
I. Why Capitalism?
The general fall of communism happened gradually, however the year of
reference which is used for the extinction of European communism is 1989. It was
then when the last European states obtained freedom from the communist
oppression, and Romania was among these states....

Find Another Essay On capitalism

Capitalism Essay

1293 words - 5 pages gross national product. After World War II Germany was divided into West Germany and East Germany. This land had same of everything and yet West Germany was doing well and East Germany was doing poor.In fact Margaret Thatcher privatized many businesses her changing Britain to capitalism improved the economy. Adams Smith's theory where a humans' greed will give the incentive to work is true. Even though Karl Marx's theory on equality may be correct

Capitalism Essay

2104 words - 8 pages at the end of the night our boss would gather and total the tips. He then finally splits the money among eight to ten guys, depending on what night of the week it is. That is where some of our money goes missing; some of us believe that it goes into the bosses’ pockets. This is how capitalism comes into play; the boss keeps making more money each day. He just walks around in a suit, whereas we don’t get one minute to stop and take a

Capitalism

1348 words - 6 pages "Underlying most arguments against free market is the lack of belief in freedom itself." [Milton Friedman] When deciding to what extent should the government intervene in the economy, the following questions must be answered: Does the economy experience periods of boom and bust? Are the goods of high quality? Is there equality, or disparity? Answering these questions spawned many philosophies; the most prominent being capitalism and socialism

Capitalism

2634 words - 11 pages Capitalism Unless we accept the claim that Lenin's coup that gave birth to an entirely new state, and indeed to a new era in the history of mankind, we must recognize in today's Soviet Union the old empire of the Russians -- the only empire that survived into the mid 1980s (Luttwak, 1). In their Communist Manifesto of 1848, Karl Marx and Friedrich Engels applied the term communism to a final stage of socialism in which all

Improving Capitalism

905 words - 4 pages Improving Capitalism Mankind is an inherently greedy and materialistic species. It is by natural instinct to hoard against future deficiency. Capitalism is based upon this principle which institutionalizes an appetite for money and power utilizing as little labor as possible. In this procedure, basic ethics are sacrificed at the cost of those people born into less fortunate circumstances. Merely because other systems have not succeeded

Authoritarian Capitalism

1854 words - 7 pages counterparts. With reference to the growth patterns that developing nations tend to follow before democratization, use of an authoritarian capitalism system has seen a reviving trend, specifically in China. The authoritarian model has clear benefits over their democratic counterparts, as seen through the revival of the authoritarian model and its combination with capitalism such as in the case of China and Russia under Putin, supporting the

American Capitalism

2383 words - 10 pages Although it holds true that the United States is a global power, the current economic system, capitalism, threatens the state's domestic and global stability; the concept of materialistic success creates inequalities between citizens, which, in turn, leads to deviance and rebellion, and the possibility of a fallen capitalistic society. If the United States were to struggle internally, one of two things would happen: all industrialized external

Welfare Capitalism

1815 words - 7 pages Welfare Capitalism. Well & Fair for Everyone.What extent of government regulation allows the citizens of the country the maximum amount of liberty? How much should the government intervene to protect the consumer? These are questions that every society must answer when developing their economic system. And for each question there are multiple answers. Some believe that little to no regulation is necessary, that the market place has natural

Venture Capitalism

1124 words - 4 pages Venture Capitalism Research in entrepreneurship has traditionally focused on established firms within the market. How they were created is as important as how they survive, information that is often taken for granted and not adequately studied. However, Koetter Woodworking has provided me with great insight to the entire process. They have provided me with information about entrepreneurship and capital venturism first-hand. However

Academic Capitalism

3362 words - 13 pages “You didn't get there on your own. I'm always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something – there are a whole bunch of hardworking people out there.” (Obama, 2012) How does this quotation relate to the increase of capitalism in the education institution? It has to do with the mentality of

Karl Marx and Capitalism

965 words - 4 pages Karl Marx, in the Capital, developed his critique of capitalism by analyzing its characteristics and its development throughout history. The critique contains Marx’s most developed economic analysis and philosophical insight. Although it was written in 1850s, its values still serve an important purpose in the globalized world and maintains extremely relevant in the twenty-first century. Karl Marx’s critique of political economy provides a

Similar Essays

Capitalism Essay 1141 Words

1141 words - 5 pages Capitalism is the name given to the economic system that incorporates free enterprise and a market system by Karl Marx, the founder of communism. By the textbook definition, capitalism is an economic system in which private individuals and business firms carry on the production and the exchange of goods and services through a complex network of prices and markets. (Heilbroner1 13-15) Capitalism is a philosophy that originated in Europe, where it

Capitalism Essay 1433 Words

1433 words - 6 pages Capitalism Throughout my duration in college, business has been my major area of concentration. Capitalism is the most central and consequential topic which has to do with business. The ideals of capitalism, over time, have faced much scrutiny. Many great minds within the past two centuries have discredited capitalism, for the virtues of socialism and the whole of society. It is my intent to put forth a moral justification of

Capitalism Essay

1291 words - 5 pages Capitalism Today in the United States, a free market system or capitalism is the main economic system. I am interested in this subject because I someday wish to own my own business. I believe that in the future this topic will be very useful to me. Among the topics that I will discuss are the greeks and romans early practices of capitalism, the ideas of Joseph Schumpeter, Rush Limbaugh, and Karl Marx, corporations, regulation by the

Capitalism Essay 1402 Words

1402 words - 6 pages - Great EssayCAPITALISMSENIOR PROJECT RESEARCH PAPERBY JASON GERKENCAREER ENGLISHMRS. CONLON5/14/95CAPITALISMToday in the United States, a free market system or capitalism is the main economic system. I am interested in this subject because I someday wish to own my own business. I believe that in the future this topic will be very useful to me. Among the topics that I will discuss are the greeks and romans early practices of capitalism, the