Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism, anarcho-capitalism, state capitalism, and welfare capitalism. Different forms of capitalism feature varying degrees of free markets, public ownership, obstacles to free competition, and state-sanctioned social policies. The degree of competition in markets and the role of intervention and regulation, as well as the scope of state ownership, vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning.
Capitalism in its modern form emerged from agrarianism in England, as well as mercantilist practices by European countries between the 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production, characterized by factory work and a complex division of labor. Through the process of globalization, capitalism spread across the world in the 19th and 20th centuries, especially before World War I and after the end of the Cold War. During the 19th century, capitalism was largely unregulated by the state, but became more regulated in the post–World War II period through Keynesianism, followed by a return of more unregulated capitalism starting in the 1980s through neoliberalism.
The existence of market economies has been observed under many forms of government and across a vast array of historical periods, geographical locations, and cultural contexts. The modern industrial capitalist societies that exist today developed in Western Europe as a result of the Industrial Revolution. The accumulation of capital is the primary mechanism through which capitalist economies promote economic growth. However, it is a characteristic of such economies that they experience a business cycle of economic growth followed by recessions. (Full article...)
Towards the late 1970s, Hong Kong became established as a major entrepôt between the world and China. The city has developed into a major global trade hub and financial centre, and is regarded as a world city and one of the eight Alpha+ cities. It ranked fifth on the 2014 Global Cities Index after New York City, London, Tokyo and Paris. The city has one of the highest per capita incomes in the world, and the most severe income inequality among the advanced economies. It has a high Human Development Index and is ranked highly in the Global Competitiveness Report. Hong Kong is the third most important financial centre after New York and London. The service economy, characterised by low taxation and free trade, has been regarded as one of the world's most laissez-faire economic policies, and the currency, the Hong Kong dollar, is the 13th most traded currency in the world. (Full article...)
As a young man, Cobden was a successful commercial traveller who became co-owner of a highly profitable calico printing factory in Sabden but lived in Manchester, a city with which he would become strongly identified. However, he soon found himself more engaged in politics, and his travels convinced him of the virtues of free trade (anti-protection) as the key to better international relations.
In 1838, he and John Bright founded the Anti-Corn Law League, aimed at abolishing the unpopular Corn Laws, which protected landowners' interests by levying taxes on imported wheat, thus raising the price of bread. As a Member of Parliament from 1841, he fought against opposition from the Peel ministry, and abolition was achieved in 1846.
Another free trade initiative was the Cobden-Chevalier Treaty of 1860, promoting closer interdependence between Britain and France. This campaign was conducted in collaboration with John Bright and French economist Michel Chevalier, and succeeded despite Parliament's endemic mistrust of the French. (Full article...)
With American and French Revolutions and the opening of vast pioneer countries, a substantial reversal of the trend developed, as to important sections of the world population, especially in political aspects, especially in political respects, also evidenced in the movement for universal education. But many new things of nineteenth century reversed this temporary change in attitude. Of these, the theory of evolution, the emphasis upon the biological background of the individual, and the study of sociology and social anthropology profoundly affected the importance of the individual in our habits of thought. And to these, the study of economics and economic speculation, especially of French, German and Englishsocialists, gradually contributed enormously. Then finally flowered the modern corporation and the organized labor movement, all emphasizing interdependence, cooperation, regimentation, as the essential aspects of life, as the constructive forces of civilization, until the subservience of individual to state, society, economic machinery, is the habitual attitude of mind. It has become exceedingly difficult to consider the individual. Chiefly the psychologist, the psychiatrist, the physician, the clergyman, and (to some extent) the teacher, recognize "man" as an individual, rather than as a statistical unit, in the major aspects of their work.
I am not making a plea for "individualism" as opposed to "collectivism." The extreme emphasis upon the individual in doctrinarie argument against various aspects of collective interest and action seems to me even less realistic than the reverse emphasis upon organization and collectivism. Not only socially and politically but also economically, men are more interdependent, at least in western civilization, than ever before. By reason of organized cooperation in innumerable ways, both population and the standard of living, and perhaps even the quality of living, have been greatly increased. Without such organization in society, retrogression is inevitable. Recognition of these facts, however, does not require a denial of the coexistence of the individual. It is individuals who are being organized, and the effectiveness of the group depends not only upon the scheme of grouping and function, but upon the quality of the elementary units. It is impossible in practice to disregard either aspect very far; but in general our condition of mind, our attention and interest in the problems of organization, dispose us constantly to a one-sided approach.
Image 4An industrial worker among heavy steel machine parts (Kinex Bearings, Bytča, Slovakia, c. 1995–2000) (from Capitalism)
Image 5The economic model of supply and demand states that the price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D): the diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product. (from Capitalism)
Image 8Gustave Doré's 19th-century engraving depicted the dirty, overcrowded slums where the industrial workers of London lived. (from History of capitalism)
Image 11Map of a medieval manor. Notice the large commons area and the division of land into small strips. The mustard-colored areas are part of the demesne, the hatched areas part of the glebe. William R. Shepherd, Historical Atlas, 01923 (from History of capitalism)
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