Modern capitalism

This essay will explain the relations between capitalism and democracy and at the beginning it will be good to define notion capitalism. It will help to continue our talk and directed thoughts in the right way.

“Many economists define capitalism more or less as a system of property rights coextensive with markets for production and consumption of goods and services, governed by the “invisible hand,” to use Adam Smith’s famous metaphor, which sets prices in line with demand and supply.” (Bruce Scott “The Roots of Modern Capitalism”, 11 June 2008)

There is a widespread faith that capitalism is definitely associated with democracy in a policy. Existed historical fact that countries formative the center of world capitalism system are democratic, but it can not be asserted in regard to entire capitalist countries, being on periphery of the system. Essentially, many declare that needed some type of dictatorship, to drive economic development to action. Economic development requires a capital accumulation, and it, in the same queue, requires low salaries and high levels of the savings. It is easy to attain this position to an autocratic government, which is able to obtrude their will to the people, than to democratic, taking into account the wishes of electorate.

In assertion, that capitalism conduces to democracy, a certain fundamental problem is covered. Forces which would push separate countries in the direction of democracy absent in the system of world capitalism. International jars and multinational corporations frequently feel more comfort with the strong, autocratic mode. Possibly, the mightiest force in a fight for democracy is a free stream of information that complicates misinformation of people from the side of the state.

If to be closer to faith, it is necessary to say that connection between a capitalism and democracy at the best case are insignificant. Here are their different rates: the purpose of capitalism is welfare, democracies are political power. Criterions which rates are estimated have also different background: for capitalism unit of calculation is money, for democracy – voice of citizens. Interests, which, as assumed, must satisfy these systems, differ: for capitalism are private interests, for democracy is public interest.

Summarizing all information above becomes understandable that the engrossing aspiring serves as a basic criterion, distinguishing a modern capitalism from his former stages, to success: strengthening of reason arrived penetration of him in spheres, where other considering prevailed before. Many years ago in life of people non-material values played more considerable role: in particular, it was considered that the representatives of culture and free professions followed cultural and professional values, but not commercial considering. To understand the difference of modern capitalism from his former stages, it is necessary to acknowledge the growing role of money as a self-sufficient value. It will not be an overstatement to say that a money govern now life of people in a greater degree, than some time before.