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What Is Capitalism?
What Is Capitalism?
What does capitalism mean? What Is Capitalism, which we don't know exactly what it means, despite the fact that it is one of the words we often hear?
Throughout history, people have established a system of governance for themselves in many ways. Approach starting from the discovery of writing in the 5 thousand year process, people have adopted different forms of management according to the Regions, Traditions and cultures in which they live, and sometimes they have chosen not to be managed. But history is always in a transformation. Today's laws can be rewritten differently tomorrow. We can call it ‘dialectic’ in short.
In the society in which people live, forms and systems of management have emerged throughout history, especially depending on three components. These;
• Socio-cultural characteristics
Apart from this trio, of course, it is possible to add other elements, but this trio pulls the head. As such, people needed to decide not only how to manage, but also how to feed themselves. Agriculture and animal husbandry, dominated by the slave-master in very ancient times, feudalism, which functioned under the monarchy in later times, and the era of capitalism, which we are still in. All three periods have their own characteristics. These three models, in which economic foundations are based on different elements, have also left their mark on human history. We're going to rid capitalism of these. So what exactly does capitalism mean?
What Is Capitalism
Capitalism is a common name given to an economic system in its most basic sense. When we go down a little more specifically and ask again what capitalism is, we see that ‘goods produced and emerging within capitalist economic systems are the private property of these people or groups under the auspices of certain people or groups.'In capitalism, the goal is to make maximum profit. In other words, a capitalist system is in constant work and effort to ensure the maximum profit from the product it produces. In order to maximize profit, capitalism always resorts to two ways;
Increase the share of profits by blocking expenses by reducing the salary of the person (employee) who produces the goods or labor,
Create a larger share of profits by selling it at a price far above the price of the product it produces.
These two paths have been the two most indispensable considerations for capitalism for many years. So to speak, these are the two pillars of capitalism.
Here, when we examine what capitalism means, we encounter such a picture. As with any system, capitalism has some immutable rules. We can list them as follows;
• Workspace freedom
• Competition (most important)
• Private ownership
What Does Capitalism Mean?
Capitalism actually means ‘capital’ in terms of the meaning of the word. In other words, as mentioned above, a constantly rotating capital (main currency) is the cornerstone of capitalism. For this reason, it was called capitalism. The aim is to ensure that this main money, that is, capital, increases by constantly expanding and spreading. This is actually the goal of all capitalist countries and individuals.
When looking for an answer to the question of what capitalism is, there is a name that will never be mentioned that he is the founder of the capitalist economic system: Adam Smith (See: Who Is Adam Smith). In his book ‘The Wealth of Nations’, he argues that this is the economic system that can best manage people, focusing on all the dynamics, pros and causes of capitalism from A to Z. And here he departs from God. According to Smith, God created man as an intelligent and willful being, so whatever man does, he will do the best, the best, and he will never have these negative consequences. He even has an important saying that supports this argument: ‘let them do it, let them do it’.
For about 200-300 years, our world has adopted a capitalist economic understanding, except for a few places, and is governed accordingly. Therefore, it would not be wrong to call all the remaining countries as capitalists, except for a small number of countries on earth.
But here, with the rule of capitalism in the world, we will not pass without mentioning the United States, which has acquired a separate place in this system. A country founded by Adam Smith in England and advanced by David Ricardo has almost melted down the capitalist system and crowned it over its head. The United States, also known as the bastion of capitalism in the world, owes its purpose of establishment and existence entirely to capitalism. The United States, governed by the understanding of Social Democracy, which is the reflection of capitalism in the field of politics, is also given the right by many economists and political scientists. America, which has never betrayed this understanding, has acquired a poem for itself to instantly crush the slightest rebellion that tries to betray it.
The largest capitalist countries that we can count except America; Germany, England, France, the Netherlands, Switzerland, Italy, etc. European countries, such as Australia, Japan, China (Bknz: Where Is China),such as countries that are neither in nor out of the system, and countries such as Brazil, Turkey, Mexico, where capitalism is in its infancy, can give examples.
The difference in ‘capitalism’ in developing and developed countries.
In developing countries (Brazil, Turkey, etc. capitalism works more aggressively than in large capitalist countries. Although there are many reasons for this, one of the biggest reasons is the insecurity caused by the lack of sufficient capital (Capital, Main money). To close this gap, developing countries often try to get everything they can from people to the maximum, but never give anything in return. They don't give much, not just financially, but spiritually.
In contrast, America, England, France, etc., where capitalism has now unleashed and taken over its roots like a giant tree. if we look at the examples, we see that capitalism applied here includes some more human conditions. Because capital is enough. The profit from capital is also sufficient for the average person. By enough, capitalism is never enough. There is always more to it, it must be found, it will be found. Here we mean ‘enough ' can be perceived as a metaphor.
In such countries, citizens can pay their taxes, work in their jobs and provide for their homes. They can shop, live in luxury or go on holidays. In return, the state gives them the opportunity to live in more humane conditions and declares that it is protecting its citizens. For example, it sets some rules of law, gives Social Security, or offers free health care. And the more people see that the taxes they pay are somehow returning to them, the more they start to impose on this system, and most importantly, they have confidence in the system.
What does ‘trust’ mean in the capitalist system?
In the capitalist system, the most important thing between individuals and management is trust. Because if your citizen does not trust you, that is, the state, his contribution to this economic system will probably be minimal. Therefore, developed countries have solved this puzzle. The great capitalist states, which follow the logic of not keeping chickens from the place where the goose will come, do not keep 2 from the place where they will receive 10.
In this direction, the Western capitalist countries that maintain their economies and administrations did not return empty-handed from the centuries-old colonial race and managed to articulate it to the changing economic system. In the continuation and gradual development of this system until this time, it is impossible not to see the gleaming effect of ‘colonialism’, which remains in the old leaves of history, is actually still functioning.
The answers to the question of what capitalism means are more or less like the ones mentioned above. Of course, capitalism is not limited to this. An explanation, affirmation or inclusion of a system that has ruled the world for 250 years is still ongoing. But people have not yet reached a consensus…