First I would like to explain the origins of capitalism, why we are so enwrapped in this economic system and the transformation of it from a national division to a global one. The earliest structured form of capitalism, called “mercantilism” which originates in Rome, the Middle East, and the early Middle Ages. Mercantilism is basically the production or buying of goods in one area and redistributing or selling of them at a higher price in search of profit. This redistribution mainly took place in the mother country of a colony so that most of the time the colony would be exploited for its raw materials and resources. Eventually, mercantilism turned into capitalism and would remain this way until the present. Capitalism is considered a practice as well as a way of thinking. As a practice, many aspects can characterize it. The first being, the accumulation of means of production as property called “capital”. Second, the human productive labor necessary for the goods to be produced and distributed, also known as wage labor. That is, people work for wages rather than product. One of the aspects of wage labor is that the laborer tends not to be invested in the product. Labor also becomes “efficient”, that is, it becomes defined by its “productivity”, and capitalism increases its individual productivity through the “division of labor” which divides productive labor into its smallest components. The result of the division of labor is to lower the value, in terms of skill and wages, of the individual worker; this would create immense social problems in Europe and America in the nineteenth and twentieth centuries.
As a way of thinking, capitalism can be described as the individual as the center of economic goals; everyone should pursue their own interests as economic freedom. Also the idea of economic growth of a nation as a whole, to make it wealthier than it would be, this idea of growth as a nation is later transcribed as the growth of the entire developed world. Capitalism makes a person a “consumer” as well, that is by the objects they purchase rather than the objects they produce.
So in a national sense, the current system is definitely an awesome device in the making of profits for the owners of capital. There are many benefits that we reap from the individuality and economic freedoms that we share. We all have the opportunity to be as successful as we aspire to be in light of our determination. If one has the ability to sell his capital in such a way so that he or she maximizes profit, the possibilities are endless. The individual has the right to do what ever is in their best interest to utilize the profit as long as fraud or deception does not occur. With the many benefits that capitalism has to offer there are also downfalls to it as well. Capitalism leads to the acquisition of wealth by the few, the more powerful corporations get, the wealthier the owners get. This might also lead to a widening of the gap between the rich and poor; there will be a small amount of people with the majority of wealth, and the majority of people will have the smallest amount of wealth. The theory behind capitalism is to use all available resources until the desired profit is reached, however resources are limited and will eventually run out.
With this, I would like to bring into discussion the national perspective of capitalism as opposed to the global one. In the beginning the economic activity and issues of a nation were domestic. The people did what they had to do in order for the thriving of their own nation without the dependence on outside countries. The nation provided itself with the products it needed for survival. Eventually, the resources would be depleted or other products were sought after, thus came the birth of trade between nations.
