Capital Gains

In: Business and Management

Submitted By reverish004
Words 2337
Pages 10
Capital Gains A majority of people in America can hardly imagine an existence without capitalism; individuals consume without a thought when we buy the latest cell phone or a new pair of hundred dollar designer jeans. It is clear that most of the world supports some form of capitalism and therefore, at least for now, capitalism has won the struggle between economic systems. Capitalism began in 1200 CE with rug merchants. Just like many traders, today, the rug merchants had to borrow money to buy their wares in order to then resell them for profit, but they had to pay back the money borrowed—usually with interest. This was called mercantile capitalism and it was a global phenomenon, from the Indian and Chinese Ocean trade to Muslim merchants who funded trade caravanserai across the Sahara. Later, merchants in Britain had expanded capitalism by developing stock companies which financed even bigger trade missions. Increased wealth of course resulted by the increased investment, but it only affected as small percentage of the population and did not create cultural influence from capitalism. Mercantile capitalism only affected a small percentage of the population, whereas industrial capitalism impacted majority of the population. Industrial capitalism was something altogether different, both in practice and scale. According to Joyce Appleby’s definition of industrial capitalism: “An economic system that relies on investment of capital in machines and technology that are used to increase production of marketable goods.” Capitalism reached its peak during the Industrial Revolution in 19th century Britain. At the time Britain was the main power at sea, successful at gaining money and trade with its colonies, which also included the slave trade. Britain managed to expose the world to capitalism with its huge influence around the world. As of now, capitalism has not…...

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