7

The shareholder system is a way of distributing the ownership of the company - each shareholder owns a certain part of the company. Shareholders are the owners of the company, in several company legal forms, such as an LLC. They exist before and after an IPO (Initial public offer), meaning that both public (traded) and private companies may have shareholders....


5

Yes. Anyone who utilizes their privately owned property or assets as a means of production for the sake of profit is a capitalist. In this case the farmer's capital is the land which they use for agricultural production.


4

Competition "works" in capitalism in the sense that society, as a whole, is provided with the maximum possible quantity of goods for a price which gets close to the cost of producing the good. Microeconomics studies how this works theoretically, and uses a series of assumptions to make the "mathematics" simpler, such as that everyone in the market is ...


4

No, the idea of wealth as something to be created did not originate in the United States. It was part of the mercantilist approach to national economic policy that was widely adopted in Europe in the 16th to 18th centuries. Mercantilism involved a range of policies, many of which were designed to increase the wealth of one country at the expense of others ...


4

According to some yes. In this (historically oriented) view, whatever succeeded feudalism is called capitalism. Capitalism, broadly accepted as a phase of history, is dominating the last half-a-millennium. It has also become conventional that capitalism itself had various phases and stages. Its antecedents go back to ancient history. Barter and exchange ...


3

While the owners of a successful business will generally experience an exponential growth compared to their employees, there are some factors to consider: I find it unrealistic for any business to maintain a growth rate of 100% over many years. (As per the example) You can only sell twice as much if you can find twice as many buyers. As a business grows, it ...


3

(Bowing to peer pressure) According to original Marxist theory, no, he is not. Here, the defining characteristic of a capitalist is that he appropriates (as "profits") the surplus value that is created during the production process by other people's labor (capital does not produce surplus value). Your freelancer or small business owner without employees ...


3

Re: main question. It can range from a) companies fraudulently charging above/below market prices among departments/subsidiaries in order to fraudulently lower tax liabilities in a particular jurisdiction, to b) companies retaining profits and associated capital in the foreign country that the profits were earned in. Most often, it refers to locating ...


3

Capitalism is defined as an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. It functions as an allocation mechanism which generally yields the most optimal results under the Fundamental theorems of welfare economics and prevents issues such as Tragedy of the commons ...


3

From a neoclassical perspective, its function is to allocate scarce resources efficiently, based on the invisible hand that make human selfishness work for the common good. Provided issues like externalities, public goods, etc are taking into account, every factor is paid its marginal product, ensuring efficiency. From a Marxist perspective, its function is ...


2

First, let us make a distinction between the functional distribution of income, related to how payment goes to factors of production, i.e, labour and capital, via wages and rents, and the personal distribution of income, which refers to how such factor payments are distributed across individuals or households. After commenting about this, we can start to ...


2

My opinion is that “capitalism” and “socialism” in this context is in the eye of te beholder. The European countries are mixed economies. One standard metric is the size of government expenditures as a percentage of GDP. One issue is that different countries have different ways of measuring national accounts data. The IMF World Economic World Economic ...


2

Distributism Distributism is one such alternative, promoted in the early 20th century by Hilaire Belloc (Economics for Helen: A Brief Outline of Real Economy) and G. K. Chesterton (Utopia of Usurers). As John Médaille describes it: Its key tenet is that ownership of the means of production should be as widespread as possible rather than being ...


2

Arguably, Henry George described such an alternative in his 1874 work Progress and Poverty. His system eventually became known as Georgism. George saw his system as different than either Capitalism or Communism, as both of those systems equated Land with Capital and called for either the private ownership of both, or the communal ownership of both. ...


1

The German mathematician-turned-economist William Lexis (1837-1914) considered capitalism as "dat[ing] back to the Middle Ages": Large-scale enterprise based on the ownership of money, and operating on the basis of such monetary power; and its beginnings which date back to the Middle Ages are to be found in commercial and banking enterprises. Also, so ...


1

A nice way to check this is by looking at the economic freedom index As we can see, this is a scale, there is no perfect capitalistic country and most of the countries are not very free economically


1

Did/does a decline in crime rates encourage materialistic values? These are interesting claims but Shiller does not seem to offer anything to back them. Much of it sounds quite logical, whence I would not expect the author to present evidence on that. But, despite my consistent preference for neoliberalism, I think the author's conclusion is ...


1

Robert Ashford has written about his proposal for a better, inclusive capitalism, but I don't understand the method. For example, take a look at this article. All is very obscure. Can't see how this would work. The article is altogether too sketchy, idealistic, contradictory, very flawed, with too many unfilled gaps and motley elements. Much of it ...


1

The dictionary definitions of capitalism (currently the most upvoted answer) have been critiqued as inadequate, in the sense that they are too broad, by Geoffrey Hodgson in his treatise, Conceptualising Capitalism (University of Chicago Press, 2015). Definitions proliferate. Most dictionaries stress private ownership and markets; many add the profit ...


1

Though there may not be a set definition of "capitalism" chisled in stone somewhere, there are general principles that economists agree are implied in capitalism and that capitalism implies. Take, for example, the two below definitions of "capitalism": [A]n economic system characterized by private or corporate ownership of capital goods, by ...


1

a bit late to the party, but: While shareholders are traditionally considered owners, whether this is legally true is a matter of dispute As Cornell Law professor Lynn Stout writes in The Shareholder Value Myth: http://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=2311&context=facpub Although laymen sometimes have difficulty understanding ...


1

Small Business Owner: Yes. Freelance Writer: Yes. Subsistence Farmer: No. Capitalism is the use to the private sector to grow the economy. This means that the private sector has to be producing a good or service that can be sold in the marketplace to benefit society. Let us take a look at your examples. A small business owner is, by definition, ...


1

If I correctly remember it, the profit motive was an important factor in the definition, though, there are other characteristics of "capitalist" i.e. wage labour, free market agent, private property etc. One definition I found useful is this: A capitalist is, practically by definition, one who exalts capital, who emphasizes the importance of its ...


1

Both classical and marxian schools assume the (cultivated) land to be means of production. The differentiation between land and shovel for example is that the land is considered natural resource (subject of labor) while the shovel is an instrument of labor. Subjects + instruments together = means of production. Owning the means of production is a ...


1

Agricultural land is certainly one means of production. A farmer is usually taken to mean someone who uses or manages land for agriculture. If they also own the land and seek to make a profit from their agriculture, then they could be described as a capitalist. But some farmers rent land from its owner. Other arrangements are possible, eg farmers may ...


1

A share is an entitlement to the ownership of a company. Such ownership brings several benefits like voting rights and dividends, and the owner is free to sell such ownership whenever s/he wants, making a capital gain (or a loss) in the process. Why is this the case? Well, it was like that with the first publicly listed stock-owned company (the Dutch East ...


1

Capitalism is a historical form of organizing the social production, distribution and consumption of goods and services. This function shares capitalism with other forms organizing the economy of a society. But capitalism differs fundamental how this function is performed. The definition and the answers are describing some important aspects, but there are a ...


Only top voted, non community-wiki answers of a minimum length are eligible