Sunday, March 4, 2012
Capitalism.. Hmm i think i know now!
Alright, so capitalism is an economic system in which there is a competition between companies/businesses/merchants and they run the state. Due to growth in agriculture and new techniques of manufacturing, the competition increased. A technique known as supply and demand, in which a businessman would buy cheap goods from a place where it was easier to find and sell it somewhere else where the goods' prices would be high because it would be rare to find, was used in a capitalist system. Also, the private parties organized institutions and services, such as banks, to promote capitalism. This resulted in higher stock-exchange in Europe. The stock-exchanges created markets for investors to buy and sell shares in joint-stock companies. The trading companies took advantage of communications and transportation networks. So pretty much, capitalism led the society into more economic and financial direction with 'cheapness'.
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You've pretty much got it. The only modification is that businesses don't try to run the state. The government stays separate from all things economic...
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