What is Capitalism? | Made in Germany



what is capitalism is it boundless luxury private ownership free trade only the powerful prevail for many capitalism is like a beast of prey according to the father of economics Adam Smith's profit drives the economy and self-interest is the engine for prosperity if we all apply rational self-interest everyone benefits profit was also key for the German philosopher Karl Marx according to Marx capital accumulation is ongoing and benefits only the factory owner to generate surplus value capitalists exploit everyone and everything workers machines natural resources surplus value according to Marx is generated on the free market when the product is sold capitalism means constant competition and price is determined by supply and demand the winner is the factory owner who Spurs ever greater profits and ever higher production everyone else loses this is how Marx understood early unfettered capitalism these criticisms notwithstanding most countries in the world today are more or less capitalist economies the downsides remain competitors go bankrupt workers receive little of the surplus value that's been generated that's intrinsic to the system and there's more low wages inequality poverty environmental destruction finance crisis the rise of monopolies today laws and rules are imposed to reform capitalism and tame it but time and again the beast of prey breaks through its fetters




Comments
  1. DW tries to simplify complex systems in two minutes and botches it up royally – i.e. just another day for them in the propaganda business…

  2. Not a very good endorsement for the system that has brought prosperity to the west for so long!

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