How has Capitalism changed the World?
Across history capitalism has played a pivotal role in the development of a previously feudalistic and commercialistic based societies to those of the current world’s economy. Capitalism was first proposed in Adam Smith’s book, ‘The wealth of the Nations’, in 1776. With it identifying a system of communal and all round economic benefit, through its emphasise in individual market freedom. Although, capitalism is currently perceived as a predominantly positive and beneficial economic system, it wasn’t like that throughout history. In my First paragraph, I will discuss the initial positive changes of capitalism. Secondly, I will talk about the positive effects it had on the world, as it evolved overtime. Lastly, I will discuss the overall negative impacts of such a system.
Firstly, Initially capitalism was greatly beneficial to the working class and those of the entrepreneurial profession.
Before the introduction of capitalism and ensuing industrial revolution men and women of lower feudalistic status (mostly farmers and those working in agriculture) were poorly paid. Additionally, the lack of industrial competition also resulted in expensive living essentials, like tools and food. However, this promptly changed after the introduction of a free market based economic system. As it opened the market to all, not just those who had established bullion reserves. Thus, resulting in an unpresented amount of economic stimulation, which eventually lead large amounts of money being invested in trade and manufacturing. Also, depicted clearly by the 500% rise of economic output but British and Irish citizen between 1770 and 1800. This investment later benefited common workers, through increased both wages and lowered living costs. Indicated by the 50% rise in 1789-1819 and then a full 100% in the coming 30 years. The increase to worker wages as a whole and the average costs of essentials, lead to an overall increase to standard of living and quality of life. In particular,the increase of economic power by the working class meant they were less reliant on land owners of the government, as they were before as agricultural workers. Thus, leading to an economic freedom unpresented in the whole of European history. Therefore, early capitalism was a large driving force for good in England. As it furthered economic freedom across the working class and entrepreneurial class, additionally increasing a standard a living for all.
Secondly, as capitalism, has evolved over the 19th and 20th century, it had become an even larger force for good.
its focus on economic improvements, leads too economic freedom, efficiency and growth. In 1990, 37% of the population lived on under $1.90 a day. By 2012, that number had reduced to 12.8%. This is trickledown economics at work, as capitalism creates more jobs whilst also allowing societies to implement socialist style systems to increase overall well being or the standard of living. This can be...