What Capitalism is and Why it Destroys
Capitalism is a particular form of trade. In the medium to long term, it creates inequality and danger to society. Here’s why.
The common points to any economic system is the production and distribution of goods. In state run socialism, the government makes decisions as to what is produced and who it is distributed to. In communism, there is collective ownership by the workers, and they make the decision as to what is produced, but not necessarily where it is distributed to. That’s probably where trade takes over. Co-operative run businesses in the world are examples of communism. Capitalism is a system whereby those with capital own the means of production, and they say that because they invested their own capital into the business and took the risk of losing their capital, they were entitled to the vast bulk of profits. It also justified them for paying what they could get away with to workers.
Capitalism replace mercantilism, and mercantilism replaced feudalism. Mercantilism was a system whereby empires were enriched by explorers bringing back all the booty they could from other countries. Thus the British Empire was able to fill the coffers of the British Museum and Spain was able to plate her cathedrals in gold. The aristocrats had the income from their farms (trade was considered disgusting and only for a lower class person), and workers worked…
