Capitalism is a complex economic and political system involving a nation’s exchange and production that are controlled by private landlords for profit. Capitalism integrates four key institutions, which are the renovation of goods and services for the factors of production, economic freedom being the method of harmonization, liberalism, and the “Spirit of Capitalism.” The four institutions offer explanations on how capitalism influences the behavior of economic actors in the Anglo-Saxon Model through its individualistic model.
First, the commodification in the factors of production addresses the shift that capitalism took when expanding the market. What had once been a market providing a subsistence routine and specialization of employment …show more content…
A liberal service state implies that a nation will defend private land, permit markets to operate maximally, provide unrestricted commodities, establish policies to mange anti-trusts and monopolies, and the insurance of patent and trademark rights. The two big ideas in liberalism are public goods and anti-monopolies because of how interconnected they are to the foundation of capitalism. Unrestricted commodities, or public goods are characterized as things that cannot be exclusively detached into entities and prevent an individual or group from appreciating another good. Monopolies limit a liberal state from fully functioning and can involve government intervention because of how powerful they are in a market. Monopolies defy all the rules of a perfectly competitive market because they restrict market entry and set prices above their marginal cost. Additionally, when a monopoly is too “destructive,” government regulations solve the issue through inhibiting mergers and decreasing incomes. Smith notes that a liberal service state also protects against crime and infiltration through developing an appropriate defense system. Smith encourages national defense in a capitalistic society because the risks of conflict increase the more a society advances (Muller, 77). Liberalism also promotes the invisible hand, which cause communal benefits from …show more content…
Max Weber uses Ben Franklin’s theories of capitalism and compares it to the idea of ethos, which states that money permanently equates time and labor precedes leisure. Franklin’s virtues expressed that individuals should do all things to practice self-interest because it is an ethical way of acquiring profits. Religious cultures influenced capitalism because of Protestants and Catholic nations moving toward more rational ideas and away from traditionalism to better understand how capitalism revolved around the interests of an individual and others (Weber, 76-77). Protestantism related to ideas of capitalism because of their mutual beliefs in asceticism and level of livelihood. Traditionalism hinders capitalism from igniting quicker because many labors do not like change and simply want to work as much as they need to reach their subsistence level (Weber, 59). Equally important, Social Darwinism influenced capitalism because everyone is born into the same system. The people involved in capitalism can only survive if they are economically fit and obey the systematized rules and
First, the commodification in the factors of production addresses the shift that capitalism took when expanding the market. What had once been a market providing a subsistence routine and specialization of employment …show more content…
A liberal service state implies that a nation will defend private land, permit markets to operate maximally, provide unrestricted commodities, establish policies to mange anti-trusts and monopolies, and the insurance of patent and trademark rights. The two big ideas in liberalism are public goods and anti-monopolies because of how interconnected they are to the foundation of capitalism. Unrestricted commodities, or public goods are characterized as things that cannot be exclusively detached into entities and prevent an individual or group from appreciating another good. Monopolies limit a liberal state from fully functioning and can involve government intervention because of how powerful they are in a market. Monopolies defy all the rules of a perfectly competitive market because they restrict market entry and set prices above their marginal cost. Additionally, when a monopoly is too “destructive,” government regulations solve the issue through inhibiting mergers and decreasing incomes. Smith notes that a liberal service state also protects against crime and infiltration through developing an appropriate defense system. Smith encourages national defense in a capitalistic society because the risks of conflict increase the more a society advances (Muller, 77). Liberalism also promotes the invisible hand, which cause communal benefits from …show more content…
Max Weber uses Ben Franklin’s theories of capitalism and compares it to the idea of ethos, which states that money permanently equates time and labor precedes leisure. Franklin’s virtues expressed that individuals should do all things to practice self-interest because it is an ethical way of acquiring profits. Religious cultures influenced capitalism because of Protestants and Catholic nations moving toward more rational ideas and away from traditionalism to better understand how capitalism revolved around the interests of an individual and others (Weber, 76-77). Protestantism related to ideas of capitalism because of their mutual beliefs in asceticism and level of livelihood. Traditionalism hinders capitalism from igniting quicker because many labors do not like change and simply want to work as much as they need to reach their subsistence level (Weber, 59). Equally important, Social Darwinism influenced capitalism because everyone is born into the same system. The people involved in capitalism can only survive if they are economically fit and obey the systematized rules and