Economic System

ECONOMY DURING THE INDUSTRIAL REVOLUTION

Adrian Barreiro | 4C

CAPITALISM

Capitalism, the political doctrine. Economic system and economic liberalism.

Capitalism

Ideologies during Industrial Revolution

Capitalism, the political doctrine. Economic system and economic liberalism.

Marxism

Anarchism

Socialism

SOCIALISM

Socialism is a socio-economic system in which the means of production are collectively or publicly owned. It was made in answer to the inequalities produced by industrialization and capitalism. The early socialists, such as Robert Owen, Henri de Saint-Simon and Charles Fourier, thought of creating commonwealths in which property and income would be common to all members. Their ideas caught on with workers and intellectuals looking for alternatives to the grim realities of industrial capitalism. The fundamental idea of Socialism is that the economy should be organized to provide for all citizens, not just to make profits for a few people. Socialists maintain that the state or the workers should own important industries, resources and large businesses. They say that private ownership of the means of production is exploitative and unequal, while common ownership is better. Socialism has always been concerned with the distinction between personal property (i.e., personal belongings and homes) and productive property (i.e., factories and natural resources). The ideal is for people to own personal property, but for productive property to be owned in common and democratically controlled. Socialists support economic planning to guarantee that production is directed towards meeting people's needs and not simply to satisfy the market. This could be through direct democratic planning by workers and communities, or through state institutions which represent the public interest.

ANARCHISM

Anarchism as a political philosophy calls for the discontinuance of hierarchical authority and for the establishment of a society based on voluntary cooperation and mutual aid. It has been developing since late 18th century to early 19th century by thinkers, like William Godwin, Pierre- Joseph Proudhon, and Mikhail Bakunin. They brought forth arguments against any systems of authority like a state, organized religion, or economic hierarchies. The belief that Men can organize their affairs without compulsion through imposed authority is central to Anarchy. The anarchists now say that all power structures are founded to lead to their upside-down exploitation or corruption and that thus only under voluntary association and cooperation can free freedom be said to exist. Anarchism sees itself not only as opposing an array of specific government institutions or types of government but even against the concept of governmental authority itself. Anarchism manifests various schools of thought, and each school underlines a particular angle of emancipation. Anarcho-communists are in for the complete abolition of private property and money in exchange for free distribution based on need. The anarchosyndicalists have in mind revolutionary industrial unionism to be the means through which society is to be transformed. Although they focus mainly on individual autonomy, individualist anarchists still support mutual aid and voluntary cooperation. Green anarchism links environmental preservation with an overall scheme of fighting hierarchy.

MARXISM

Marxism was a variety of Socialism. It was created by Karl Marx and Friedrich Engels. They shared their ideas in a pamphlet called the Communist Manifesto. They talked, for example, about how the Industrial Revolution enriched the wealthy, impoverished the working class and how Capitalism affected labor, productivity and economic development for the worse. Their main goal of the Communist Manifesto is, as the title implies, to overturn and fight against Capitalism in favor of Communism. It argues that owners of capital will estimulate the working class to buy goods, houses, technology and more until the debit becomes unbearable. Marx saw the Capitalism separated by two classes: The Bourgeoisie and the workers. The Bourgeoisie owned capital (land, money, goods), meanwhile the workers didn't own capital, they only sold their labor power to the Bourgeoisie. Their prediction was a revolution from the workers which would end up creating a classless society.

CAPITALISM

Capitalism is an economic structure based on private ownership of capitals and the production of a dividend from it. It was created by Adam Smith. It began emerging during the 16th and 18th centuries as it gradually displaced feudalism in Europe with its rise to dominance helped by the Industrial Revolution. Capitalism is characterized by capital accumulation, competitive markets, wage labor, and sellers and buyers engaging in voluntary exchange. The primary thing of capitalism states that individuals should be given the freedom to own property, make economic decisions, and conduct trade without much interference from the government. Central planners do not control the prices, production, and distribution of goods and services under the capitalist system, as these functions are dictated primarily by market competition in the free markets. This is dictated sometimes by equilibrium in supply and demand made by the market mechanisms which influence decisions and resource allocation in the economy and determine price. The capitalist economy is based on several major factors. Capital is generated and distributed by private owners who invest capital to set up businesses, hire labor to sell their work for wages, and manufacture products for sale at a profit. Business competition likely brings about innovation, efficiency, and economic growth, which is sometimes encouraged by the profit-incentive mechanism causing businessmen to pursue taking risks, develop new products, and create fresh methods of production. In addition, the financial market allows the capital to be shared through financial instruments like stocks, bonds, and loans.