What is capitalism exactly?| Sohail Khan

 

 What is capitalism exactly?| Sohail KHan 

What is capitalism exactly?

How successful was it? Or did it fail?

Let's find out.

The word 'Capitalism' comes from the word Capital which means Money.

Or any type of wealth.

Whether you have houses, cars on land, they are your capital.

In the last video, I gave you the basic definition of Communism.

It is a society where every person works according to his ability

and receives according to his needs.

If we have to define Capitalism similarly,

Capitalism is a society where "from each according to his ability,

To each according to his capital."

A society where every person works according to his ability

but they get returns according to their capital.

The person with the most capital will get the most profit.

After knowing the definition you'd ask me: "What kind of a society is this?"

"Where a person who has more money will get more money."

I'll talk about the exact workings later in the articles

 ideology

Capitalism is an ideology that promotes privatization

where the means of production like land, fields, factories, and industries,

are owned by private individuals.

Communism

In Communism they were owned by the public, everyone owned these.

Similar to Communism, Capitalism is a very broad term and ideology.

Where there are many subsections of ideologies with differences among them.

But if you look at it broadly, there are a few things that are common in all types.

First is the Privatisation.

Second, minimal interference by the Government.

Most Capitalists believe that

the Government has no business to be in business.

This dialogue has been used by our Government recently.

The third is the Free Market and Competition.

and Fourth is something that is easily seen in a capitalist society,

 What is capitalism exactly?| Sohail Khan 

"Money Begets Money."

Money is earned through Money.

I'll explain this later.

First, let's talk about the history of Capitalism.

Feudalism.

The oldest example of Capitalism is Feudalism.

This can be called the primitive form of capitalism.

This was around the 10th century when landlords occupied land,

and the farmers and laborers who worked on the land,

worked tirelessly to grow crops. But all the profits from the land

were used to be taken by the landlords,

and the farmers hardly earned enough to get by.

You may wonder how this is an example of capitalism.

The land was owned by an individual, the landlord.

And to whom did most of the profit from the land go? The Landlord.

Capitalism works similarly today.

Whatever you do at whichever company,

 What is capitalism exactly?| Sohail Khan 

suppose you're an employee at Apple,

you work the whole day and get a monthly salary in return.

But the company earns profits. Where does the profit go?

It doesn't go to you It goes to the owner of the company.

There are differences. Today you get workers' rights

and minimum wages and are not exploited, in most the cases

Who is the owner of this Apple company?

That person who holds the most number of shares of the company.

Even you can become the owner of the company through the share market.

If you buy some shares Apple, any profits earned by it, you will get a part of.

Because you are also an owner of a portion.

We live in such a capitalist society today.

An employee works in a company for a monthly salary

and the profit earned by the company will be distributed among such people

who doesn't even know the day-to-day working of the company?

You can earn the profit of the company by doing nothing if you invest in the company.

And who can invest? Someone who already has the money.

As I said, money makes money.

One with the most money in a capitalist world can make more money easily

by investing in such companies and taking their profits.

Modern Capitalism 

Modern Capitalism started in the 16th-17th century in Britain and Netherlands.

The first stock exchange of the world was the Amsterdam Stock Exchange,

and the first company to be listed was the Dutch East India Company in 1602.

 What is capitalism exactly?| Sohail Khan 

Like there's Karl Marx for Communism,

similarly, there's Adam Smith for Capitalism.

Known as the Father of Capitalism.

In 1776 he wrote the book The Wealth of Nations.

In the book, he talked about a policy Laissez-Faire.

It is a French word that means 'leave alone.'

That government should leave the economy alone and should not interfere.

From here Free Market Capitalism started.