Capitalism

Definition

Capitalism is an economic system characterized by private ownership of the means of production, where goods and services are produced for profit in a competitive marketplace. This system emphasizes individual entrepreneurship, capital accumulation, and market-driven economies, which contribute to societal changes and innovations. As capitalism developed, it transformed economies and social structures, influencing literature and ideas during significant historical periods.

5 Must Know Facts For Your Next Test

1. Capitalism emerged in Europe during the late Middle Ages and gained momentum with the Commercial Revolution, fostering trade networks and financial systems.
2. Daniel Defoe's works often reflect capitalist themes, illustrating the entrepreneurial spirit and individualism associated with early capitalist society.
3. The rise of capitalism coincided with increased urbanization as people moved to cities for jobs in factories and trades, changing social dynamics.
4. Capitalism has influenced various literary movements, including realism, as authors explored themes of class struggle, economic disparity, and personal ambition.
5. Critiques of capitalism began to surface in the 19th century, highlighting issues such as exploitation, inequality, and environmental degradation, leading to discussions on alternative economic systems.

Review Questions

• How did capitalism influence the characters and narratives in Daniel Defoe's works?
  • Capitalism greatly influenced Defoe's characters and stories by showcasing individual ambition and the drive for economic success. In works like 'Robinson Crusoe,' the protagonist embodies the capitalist spirit through self-reliance and resourcefulness. Defoe's focus on commerce and entrepreneurship reflects broader societal changes during his time, portraying how personal endeavors within a capitalist framework could lead to both wealth and personal fulfillment.
• Analyze how the emergence of capitalism contributed to the development of realism in literature.
  • The emergence of capitalism played a significant role in the rise of realism in literature by shifting focus from romanticized narratives to more authentic depictions of everyday life. As capitalist societies fostered diverse social classes and economic disparities, realist authors began to explore these complexities through their characters' struggles. This movement aimed to represent life truthfully, often highlighting issues like class conflict and social injustice that stemmed from capitalist structures.
• Evaluate the long-term effects of capitalism on society as portrayed in Defoe's works compared to modern interpretations of capitalism.
  • The long-term effects of capitalism as depicted in Defoe's works show a foundation for individualism and entrepreneurial success that continues to resonate today. However, modern interpretations also recognize the drawbacks associated with capitalism, such as inequality and environmental impact. While Defoe celebrated personal achievement within a growing economy, contemporary discussions often address how unchecked capitalism can lead to systemic issues that necessitate reforms or alternative systems to ensure social equity.

Related terms

Merchant Class: A social class that emerged during the rise of capitalism, consisting of individuals who engage in trade and commerce, playing a key role in economic development.

Industrial Revolution: A period of rapid industrial growth and technological advancement in the late 18th and early 19th centuries, which significantly shaped capitalist economies and societies.

Laissez-Faire: An economic philosophy advocating minimal government intervention in the marketplace, allowing businesses to operate freely and compete without restrictions.