which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled. Through capitalism, the land, labor, and capital are owned, operated, and traded by private individuals or corporations, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary private decision in a market economy
A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. In a "capitalist state", private rights and property relations are protected by the rule of law of a limited regulatory framework The central axiom of Capitalism is that the best allocation of resources is achieved through consumers having free choice, and producers responding accordingly to meet collective consumer demand. This contrasts with planned economies in which the state directs what shall be produced. American Caste System The first Non-working Caste Those who don't (cannot) work [The Outcastes] -the uneducated, unemployable, addicts, handicapped poor, elderly poor. Many of these outcastes are minorities or in jail.
The Working Castes Those who work primarily with their hands [Unskilled manual workers] - minimum wage, service industry (most of these are barely making it) . Those who work primarily with their hands [Skilled manual workers] - blue collar workers, trades people etc (many of these are insecure and constantly worried that they may fall into 1) American Caste System The Working Castes Those who work primarily with their heads [White collar, mental workers] - office workers, engineers, first line supervisors, journalists, teachers, academicians, other professionals etc (many are struggling to get into 4, shocked when they fall into 1). American Caste System The Working Castes Those who work primarily with their mouths [Management, verbal workers] - managers (middle and upper), newspaper/magazine editors, politicians, independent business owners, self-employed lawyers and doctors etc. These often imagine that they rule the world without acknowledging (or even realizing) that they have been bought and paid for the other non-working caste.
American Caste System American Caste System The Second Non-working Caste Those who don't (don't need to) work [The CAPITALISTS] - Some of these actually do choose to work, but their income is primarily 'unearned' and comes from their invested capital. They essentially live off the labor of 1 through 4. American Caste System The Second Non-working Caste The capitalists' main job is to remain invisible (unless they are politicians) and use their power and influence (they own the media as well as government leaders - both elected and appointed) to keep the four working castes suspicious and distrustful of each other and together learn to hate the other non-working group or some foreign threat
Capitalism and Democracy It has been suggested by some that there was a deliberate decision after World War II to use terms like the 'free world', the 'free market', 'free enterprise' in order to imply that all these were synonymous with freedom and a democratically elected government. This has become so pervasive in the US that many people very likely think that a capitalistic state means a democratic one. Capitalists and Entrepreneurs the myth that all capitalists (or at least most of them) are entrepreneurs - constantly starting new ventures, taking major risks, helping the economy to grow and generally raising the standard of everyone else. The truth is very few capitalists are entrepreneurs who start their own enterprises Characteristics of Capitalism as practice The accumulation of the means of production (materials, land, tools) as property into a few hands; this accumulated property is called "capital" and the property-owners of these means of production are called "capitalists." Productive laborthe human work necessary to produce goods and distribute themtakes the form of wage labor. That is, humans work for wages rather than for product Labor also becomes "efficient," that is, it becomes defined by its "productivity"; capitalism increases individual productivity through "the division of labor,". Result of the division of labor is to lower the value of the individual worker; this would create immense social problems in Europe and America in the nineteenth and twentieth centuries. Characteristics of Capitalism as practice Characteristics of Capitalism as practice The means of production and labor is manipulated by the capitalist using rational calculation in order to realize a profit. So that capitalism as an economic activity is fundamentally teleological Capitalism as a way of thinking is fundamentally individualistic, that is, that the individual is the center of capitalist endeavor. All individuals are different, that society is composed of individuals who pursue their own interests, that individuals should be free to pursue their own interests (this, in capitalism, is called "economic freedom"), and that, in a democratic sense, individuals pursuing their own interests will guarantee the interests of society as a whole. Characteristics of Capitalism as way of thinking Capitalism as a way of thinking is fundamentally based on the Enlightenment idea of progress; the large-scale social goal of unregulated capitalism is to produce wealth, that is, to make the national economy wealthier and more affluent than it normally would be. The entire structure of capitalism as a way of thinking is built on the idea of "economic growth." This economic growth has no prescribed end; the purpose is for nations to grow steadily wealthier. Characteristics of Capitalism as way of thinking Economics, the analysis of the production and distribution of goods, has to be abstracted out of other areas of knowledge. In other words, capitalism as a way of thinking divorces the production and distribution of goods from other concerns, such as politics, religion, ethics, etc., and treats production and distribution as independent human endeavors. In this view, the fundamental purpose and meaning of human life is productive labor Characteristics of Capitalism as way of thinking The economic world view treats the economy as if it were mechanical, that is, subject to certain predictable laws. This means that economic behavior can be rationally calculated , and these rational calculations are always future-directed . So, the mechanistic view of the economy leads to an exclusively teleological world picture; capitalism as a manipulation of the "machine" of the economy is always directed to the future and intentionally regards the past as of no concern
Characteristics of Capitalism as way of thinking The fundamental unit of meaning in capitalist and economic thought is the object , that is, capitalism relies on the creation of a consumer culture, a large segment of the population that is not producing most of what it is consuming. Since capitalism, like mercantilism, is fundamentally based on distributing goods moving goods from one place to another consumers have no social relation to the people who produce the goods they consume. Characteristics of Capitalism as way of thinking