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Capitalism is the science of business and economics. It has produced more prosperity, for more people, than any other social and economic development system in human history. Private property, self-determination and free enterprise are important dimensions of capitalism.
Capitalism is a family oriented system. The patriarchy and the matriarchy are important features of real capitalism. Tyrants almost always attack the authority of the patriarchy over the family and over the private property the family owns.
Capitalism and democracy both depend on religion. They are amoral systems. They depend on people having a moral education. Religion is the original source of moral and spiritual education. Seek the truth. Study the one, unchanging, eternal Faith of God.
Holistic Home Office is not a religion. It is just my subjective perspective of the one objective reality. You’ll have to read more than one story and watch more than one video on this website in order to figure out what I am saying here. Keep seeking the truth about human nature and civilization. Cultivate your own perspective of the truth.
We created the state to serve and protect our families. Unfortunately, some people have a selfish desire to be more important than other people and to control the people around them. Capitalism is based on the ancient patriarchy.
If you are successful and happy in the corporate world, then keep doing what you are doing. Whether you want to work in a large or small business or your own home office based private enterprise, keep reading and watching the videos to learn how to solve the incredibly complex and fun puzzle of puzzles that your home office, website, art, science and story telling can be.
Creativity is the most primal instinct. Productivity is one form of creativity. Productivity causes prosperity. Unproductive people are worthless. Add value to the natural and artificial resources all around you. Learn how to be productive, how to make money, how to increase your capital and how to manage your private property well.
Get good at trading. Dale Carnegie’s, How to Win Friends and Influence People, and Napoleon Hill’s, How to Think and Grow Rich, are two classic books about cultivating an attitude of prosperity. Robert Kiyosaki has written some pretty good stories about personal prosperity.
Accounting is a valuable skill. Use free and open source software to help you design and build your own private accounting system. Make a set of spreadsheets for your income and expenses. Make one sheet for your various sources of income. Make another one for your personal expenses and one for your business expenses.
Making your own set of financial documentation is one more way you can break free from the culture of dependence that our academy is teaching, big businesses are selling and big government is enforcing.
Keep your records up to date and neat and clean and well organized. Work on keeping the file system on your computers well organized. Continuously work on improving your technology stack, your skills and your strategy and tactics to keep accurate records of your financial activity.
The Nature of Capitalism
Capitalism is an economic system in which the means of production (such as factories, machinery and land) and distribution of goods and services are predominantly privately owned and operated for profit. The system emphasizes individual and corporate ownership, voluntary trade, competitive markets and the pursuit of profit as the primary drivers of economic activity.
Individuals and businesses have the right to own and control property, resources and capital. Ownership rights are protected by law, allowing owners to sell, lease or use their property as they see fit. Goods and services are traded in markets where buyers and sellers willingly engage in transactions. Prices are determined by supply and demand rather than by central authority.
Businesses are driven by the goal of earning profits, which are the financial rewards from providing goods and services that people value. The profit motive encourages efficiency, innovation and entrepreneurship. Multiple businesses compete to offer the best products and services at the lowest prices, benefiting consumers. Competition helps to allocate resources efficiently and spurs innovation.
In pure capitalism, the government plays a minimal role, focusing on protecting property rights, enforcing contracts and maintaining law and order. However, most capitalist systems include some level of government regulation to address market failures and ensure fairness.
How Capitalism Works
Entrepreneurs and businesses decide what goods and services to produce based on consumer demand. They allocate resources and labor to create products and services efficiently, aiming to maximize profits.
Prices act as signals in a capitalist economy, balancing supply and demand. High demand or limited supply drives prices up, incentivizing producers to increase output. Conversely, excess supply or low demand pushes prices down.
Different markets in a capitalist system include perfect competition, monopolistic competition, oligopoly and monopoly; each influencing pricing and resource allocation differently. Capitalism relies on financial markets for investment and economic growth. Individuals and institutions invest in businesses through stocks, bonds and other instruments, providing capital for expansion and innovation.
Advantages and challenges of Capitalism
Resources are allocated based on market demand, minimizing waste. Competition drives businesses to produce goods and services at the lowest cost. The profit motive and competition foster innovation and technological advancement. A wide range of goods and services are available to consumers, allowing them to choose based on preferences. Capitalism often leads to significant economic growth, generating wealth for individuals and nations.
Capitalism can lead to significant income and wealth disparities, with power concentrated in the hands of a few. Situations like monopolies, environmental degradation and economic crises can arise when markets fail to allocate resources efficiently. Critics argue that workers may be exploited, with wages kept low to maximize profits. Businesses may prioritize short-term profits over long-term sustainability and social welfare.
Variants of Capitalism
- Laissez-Faire Capitalism involves minimal government intervention, emphasizing free markets.
- State Capitalism involves the state playing a significant role in the economy, owning key industries or heavily regulating private ones.
- Social Market Economy combines capitalism with social welfare policies to address inequality and provide public goods.
- Mixed Economy includes elements of capitalism alongside government intervention and public ownership in specific sectors.
Capitalism emerged in the late Middle Ages, evolving from feudalism. It gained momentum during the Industrial Revolution (18th-19th centuries), driven by technological advances and colonial expansion. Thinkers like Adam Smith, who wrote An Inquiry into the Wealth of Nations in 1776, laid the intellectual foundation for modern capitalism by emphasizing free markets, competition and the “invisible hand” guiding economic efficiency.
In the 21st century, capitalism dominates the global economy, with most nations operating mixed economies that incorporate capitalist principles. However, debates continue about how to balance its benefits with addressing its social and environmental downsides. Concepts like “conscious capitalism,” “green capitalism,” and “stakeholder capitalism” have emerged as efforts to make the system more equitable and sustainable.
Capitalism remains a dynamic and evolving economic system, deeply influencing global societies and economies. Its capacity for growth, innovation and adaptability makes it a powerful force, but its challenges require careful management to ensure fairness and sustainability.
Photo by Josh Sorenson | Pexels Video by Bob Mccoy using Samsung Note 9