Forms Of Capitalism

1476 Words 6 Pages
Patrick Jake O’Rourke (1998), who is an American political satirist, journalist, writer and author, stated, “The idea of capitalism is not just success but also the failure that allows success to happen”. Capitalism has affected in the way that modern states develop in terms of business, economy, and politics. In addition, it has several forms, such as enterprise capitalism, social capitalism, collective capitalism, and so on. The definition of capitalism is “a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principle (Heywood, 2007)”. Many theorists, like Simon Tormey (2004) and Ellen Meiksins Wood (1991), also identify capitalism as a system. It could be argued …show more content…
The territorial consolidation of the state is one of the most important factors which facilitate the emergence of capitalism. What has been involved in it is the extension of power and authority, the elimination of autonomous centres of power, and the delineation of national boundaries. They are economically crucial because these political changes set up a single economic space (Gill, 2003). It secures economic activities and the quality of living standards as well as increases economic interactions at international level. The establishment of law and order also enforces states to maintain state economy. Plus, industrialisation fosters capitalism. Technological developments, such as mills, factories, and cotton spinning, gave birth to the mechanised factory system in modern states. Economic developments also affect the state with increasing capital and savings. For example, the establishment of the City of London as the holder of national debt and the release of a large amount of capital to investors are to create a large scale industrial enterprise of capitalism (Wood, 1991). As a consequence, the developments in the state and industry have made a significant impact on the emergence of

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