The rise of capitalism

Definition

The rise of capitalism refers to the transition from feudal economies, characterized by land ownership and agrarian labor, to capitalist economies where trade, industry, and private property became central. This shift not only transformed economic systems but also had profound implications on social structures, labor relations, and cultural ideologies, contributing to the establishment of hegemony in various societies.

5 Must Know Facts For Your Next Test

1. The rise of capitalism was significantly influenced by changes in trade practices, including the expansion of international trade routes and the discovery of new markets during the Age of Exploration.
2. As capitalism grew, there was a shift in labor relations, with a move away from serfdom towards wage labor, which allowed for more mobility and opportunities for individuals.
3. The emergence of a consumer culture became a hallmark of capitalist societies, with increased production leading to greater availability of goods and changing consumption patterns.
4. Capitalism fostered the growth of financial institutions, such as banks and stock exchanges, which played a crucial role in facilitating investment and economic expansion.
5. The rise of capitalism led to social stratification, creating distinct classes within society, where wealth accumulation became linked to economic power and political influence.

Review Questions

• How did the rise of capitalism affect social structures in emerging capitalist societies?
  • The rise of capitalism fundamentally altered social structures by creating distinct classes based on wealth accumulation and ownership of production. The bourgeoisie emerged as a powerful class due to their control over capital and resources, while the proletariat became increasingly defined by their reliance on wage labor. This division not only influenced economic relationships but also shaped cultural identities and social dynamics, leading to tensions that would eventually inform discussions around class struggle.
• In what ways did the rise of capitalism contribute to the establishment of hegemony within societies?
  • The rise of capitalism facilitated the establishment of hegemony by enabling dominant classes to exert control over both economic resources and cultural narratives. As capitalist economies grew, those in power were able to shape ideologies that justified their dominance while marginalizing alternative views. This process was reinforced through institutions like education and media, which promoted values aligned with capitalist interests, ultimately normalizing inequalities that benefited the bourgeoisie.
• Evaluate the long-term consequences of capitalism's rise on global trade patterns and local economies during its initial phases.
  • The long-term consequences of capitalism's rise significantly reshaped global trade patterns and local economies. Initially, it led to the integration of local economies into a global market system where commodities were produced for exchange rather than subsistence. This transition resulted in increased economic interdependence among nations but also contributed to colonial exploitation and uneven development. As local economies adapted to capitalist demands, many traditional practices were disrupted, leading to social upheaval and changing cultural landscapes across different regions.

Related terms

Industrial Revolution: A period of major industrialization during the late 18th and early 19th centuries that marked a significant turning point in history, leading to the mechanization of agriculture and manufacturing.

Proletariat: The working class in a capitalist society, who sell their labor for wages and are often seen as being exploited by the bourgeoisie.

Bourgeoisie: The capitalist class who own most of society's wealth and means of production, often contrasted with the proletariat.