Capitalism

Capitalism

1. Meaning

   • an economic system and an ideology that is based on private ownership of the means of production and their operation for profit
   • industries owned by private people not government
   • Sell the products for profit

2. Historical Development

   • - European Middle Ages - started to develop - After French Revolution & Napeleonic - Adam Smith, father of capitalism create policies and his policies put into practice - 19th century - industrial capitalism and factory system started to grow and develop - 1860s to 1914s - the development led to the beginning of the Industrial Revolution in United States - Started to spread all over the world

3. Characteristics

   • Voluntary Exchange
   • Private Property Right
   • Profit Motivate
   • Economic Freedom
   • Competition

4. Impact

   • economic disparity
   • discourage local production
   • consumerism
   • encourage corruption