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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