In our last video, we explained that capitalism
grew out of the failure of Middle Age feudalism.
But why did it grow so quickly and pervasively
as a social and economic system?
Capitalism, in a nutshell, is the private
ownership of the means of production combined
with a free market system of trade.
And while not everybody agrees with Capitalism’s
effects on society, it’s difficult to argue
that capitalism doesn’t have a massive impact
on societies that implement it.
Which is also nearly all societies.
So, why is capitalism so successful?
Essentially, capitalism grew to be what it
is today because it is an attractive offer.
It says that if you are able to outwit your
competition, you’ll get more money, and
money can buy you options.
You don’t have to work the fields anymore,
instead you can pay people to do that for
you.
And that process incentivizes innovation and
hard work.
Of course, the dark side is that if you don’t
manage to outwit your competition, you may
end up in a worse place than if you had never
competed to begin with.
That’s the inherent basis of inequality
and the source of most capitalist critiques.
It also promotes financial gain as the most
effective and sought after tool for how we
measure success.
Now, many countries have attempted to combat
the negative aspects of capitalism while promoting
the positive.
Socialist-leaning countries like Sweden are
championed because they soften the blow of
failing in a capitalist system through social
welfare.
Other countries attempt to remove capitalism
entirely, the USSR for example, tend to suffer
from a lack of incentive, and subsequently
must use force as motivation.
Countries that prioritize capitalism above
social protections, like the United States,
tend to suffer from some of the nastier side
effects, like high rates of poverty and inequality.
Clearly capitalism comes with it’s pros
and cons, as is the case with most political
systems.
Whether it is worth it or not will probably
depend on your values and priorities.
Since capitalism is a complex and interconnected
system, there are millions of other angles,
and opinions, we can’t cover in two three
minute videos, or even a 3 month video.
So let us know what we missed!
If you enjoyed this video, make sure you check
out our piece on Communism, an economic and
political theory on the opposite end of the
spectrum.
You can find that link in the description
below.
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