Describe Government Manipulation and Economics-Capitalism

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Government Manipulation and Economics-Capitalism
Capitalism has brought in many effects in the globe today. Many issues, as well as many developments in the nations, are attributable to the national economic and political systems adopted by that nation. Kurlantzick (54) explains capitalism as a free market/ free enterprise economy whereby production is guided, most of the means of production are privately owned and the distribution of income is majorly through market operations. This social system of private ownerships thus is open to new enterprises, new markets, new ideas and new capital. Many individuals hold the belief that capitalist systems develop, protect and stabilize the society and they have evolved and modified for various reasons. Notwithstanding, without control, it can become destructive and can highly invade and dim civilization. Marxism postulate that capitalism sows the fruits of its own destruction; and this contentious statement may be true but does not dilute the fact that capitalism continues to grow and has significantly contributed to the advancement of humanity. Accordingly, the paper will elaborate capitalism; its principles, its development, major figures, its culture and period, major events, reactions and its impacts.
Understanding Capitalism; Development/History, key figures and its Principles
Development of Capitalism and key figures
The sociological micro-foundation for the dynamics of capitalism fixates on the expectation concerning the global future states. Capitalism in the world began as a reaction and an effort to annihilate the comparatively inflexible feudal lifestyle. Feudalism is a political-economic system whereby landowner granted land to a servant in exchange for services such as military or homage. The feudal economies persisted up to the end of the fifteenth century after which there began to be a rise of the merchants in the beginning of the sixteenth century (Beckert 330). These merchants also referred as buyer uppers emerged as the connection between consumer and producers. They grew to dominate the trade sector and evolved into capitalists in the seventeenth century. This means they amassed wealth from owning the means of production.
The rise of capitalism drove out the feudal economies as well as the aristocratic rules. It saw to the rise of manufacturing and the industrial revolution. Notably, the rise of capitalism is attributable to the systematic breakdown of feudalism as an economic and as a social-political to be replaced by a wage labor system. The increased use of money and inflation systematically obliterated the feudal systems. Sadly, the development of capitalism emerged from the exploitation of the working class. Paradoxically, capitalism brought with it the power for labor workers to organize for change. Key figures in the development of capitalism include Adam Smith, James Steuart and David Ricardo who established a discourse which elucidated the rationale, the origin and the critical rightness of capitalism (Beckert 335). Other theorists such as Karl Marx, Émile Durkheim, Simmel and Max Weber helped in the comprehension and adoption of capitalism. These theorists even tried to give alternatives. To date, capitalism continues to inform and maintain social relations. The current system is such that there is a familiar pattern of economic success based on which country or capitalist can obtain the most profits from its workers. It is basically an exploitation of labor for profits. Indeed, capitalism brought with it untold misery in its evolution. Nonetheless, it developed new ideas such as anarcho-syndicalism and many other empowerments to the people and the world.
Principles of Capitalism
Capitalism is a social order founded on the recognition and acknowledgment of individual rights. Typically, it is the system of laissez-faire that upholds freedom. In regards to economics, capitalism translates the freedom into the production realm resulting into a free-market/enterprise economy. In a legal sense, it holds to the rule of law rather than the rule of man. The most fundamental principle of capitalism is that it holds profit as the main objective of an economy. The global expansion of capitalism has undoubtedly seen the steady upward rise of corporate profits over the years (Beckert 328). The second principle is that of unrestrained competition. This tenet sees to the establishment of free-trade agreements. This is a controversial principle as it confuses the role of government in the economy. Ideally, government serves to protect all its citizens from exploitation and to ensure equality and fairness. This role is highly undermined by the basics of capitalism.
In addition, capitalism is based on the conviction that there should be no limits to growth and unlimited accumulation of wealth. This is whereby the phrase the rich get richer emerges from. The number of billionaires in the world is increasing each day and individuals are amassing great amounts of wealth. However, the gap with the poor in the society is growing meaning as the rich get richer; the poor tend to get poorer. Capitalism does promote inequality; but all the same, it does promote unlimited economic growth (Patnaik 158). It does have an economic value as much as it does bring about socio-economic challenges.
Capitalism also encourages consumption. This is usually driven and steered by advertising. Consumption does sustain growth. That is, with boosted rates of consumption come higher growth rates. In addition, the capitalist nations have deregulation of markets. The basis of capitalism is free-market/enterprise economies hence economic integrations for complementary economies. In addition, another principle of capitalism is that nature is a commodity implying that it is marketable and consumable (Hawken et al. 59). This is evident in the marketing and extensive and profitable sale and consumption of bottled water which is nature’s bounty. There is also the widespread privatization of natural resources and utilities. This is where the capitalist state governments must come in to protect natural resources and utilities. However, this is usually not the case as this often results in massive corruption, embezzlements, environmental degradation and/or poverty. Capitalism discourages the state’s incentive to impose equality thus the adverse abuse of private resources.
For capitalism, taxes limit grows. Capitalists argue that taxes are a limit on the international capital investment market (Hawken et al.140). However; tax reductions are not free as they come at a cost. To increase the international mobility of firms and capital through tax reductions and reforms means there is a compromise on the nation’s ability and capacity. Often, the tax burden is shifted from the internationally mobile capital to the labor force. It means these tax compromises the capitalists and the corporates to boost their revenues and profits at the expense of the working class as it translates to unemployment and lower wages/salaries.
With the sole purpose of businesses being to boost their profits and revenues, social responsibility is ignored and compromised. Busin...