Essay on Capitalism : The Quest For Cost Reduction And A Fair Price

1653 Words Dec 13th, 2016 7 Pages
Capitalism: The Quest for Cost Reduction and a Fair Price
Capitalism is the idea that wealth can be grown. Under a capitalistic society, wealth is grown from the private sector where land is privately owned. Production in a capitalistic society is efficient due to the rewards of being efficient. If a producer can make more goods for cheaper than he currently is then the producer can make more money. Capitalism arose out of specific conditions during the feudal era in England and was widely put to use in various countries during the Industrial Revolution. Capitalism is an evolving definition that is tweaked with each major period of its history insuring in each period that goods could be produced for the cheapest available means and sold at a price the producers saw as fair.
There are three major periods of the history capitalism: Pre-Industrial capitalism, Industrialization, and Post- Industrial capitalism. The first period, Pre-Industrial capitalism, spans the beginning of capitalism and up until the Industrial Revolution. This era is the very beginning of capitalism. Michael Beaud writes, “Capitalism was formed within the merchant and monetary societies of Western Europe . . . We will follow the developments through the sixteenth, seventeenth, eighteenth centuries, which led to the British industrial capitalism of the nineteenth century.” Beaud offers that capitalism was present as early as the 1500s but was not dominant until the Industrial Revolution. There were…

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