Capitalism means different things to different people as evidenced in this [thread](https://twitter.com/KateRaworth/status/1347871386258333699). Before we can explore something we have to define it. Capitalism is a system for allocating resources in an economy. It defines the owners of resources (capital) and the relationships between them. It provides and organizing framework for society to form around. In "free market capitalism" the system is powered by and therefore dependent on the market which results in the following characteristics: 1. Capital is privately owned, not democratically managed; 2. Markets exist as a space where all economic actors must go to either acquire or sell goods and labor (services); 3. The objective function of the markets is the profitable exchange of goods and services; 4. The price setting mechanism of the markets is the means by which goods and services are exchanged. ## Alternative Definitions >...is an economic system in which private individuals or businesses own capital goods. At the same time, business owners (capitalists) employ workers (labor) who receive only wages; labor doesn't own the means of production but instead uses them on behalf of the owners of capital. >-*Investopedia* >...is a system in which goods and services, down to the most basic necessities of life, are produced for profitable exchange, where even human labour-power is a commodity for sale in the market, and where all economic actors are dependent on the market. >[...] >This distinct system of market dependence means that the requirements of competition and profit-maximization are fundamental rules of life. >-Ellen Meiksins Wood, *The Origin of Capitalism* >Perhaps one of the most robust frameworks ever developed to help people model and predict the behavior of everyone else they interact with... >[*Andrew Kortina*](https://kortina.nyc/essays/social-systems-are-computations-that-minimize-uncertainty/) ## In What Conditions Does Capitalism Thrive? The Dutch created the unique features of the capitalistic system but they did not have the proper environment in which it could flourish. It was the English in the 15th-17th centuries which provided the environment for the Dutch invention to flourish. **Social and Property Relations** **Risk** ## Principals of 1. Voluntary Exchange 2. A Price System 3. Competitive Markets 4. Private Property 5. Wage Labor **Case Studies:** - [[CHG Issue 162 Sometimes Markets Go Awry]] - [[CHG Issue 140 Modern Aristocracy]] - [[CHG Issue 138 Maximizing Profits]] - [[CHG Issue 137 CAPITAL-ism]] - [[CHG Issue 7 GameStop]] Explore Further: [[Auction Process]] | [[Giving Thanks For Capitalism]] Tags: #seeds Your support for Cedars Hill Group is greatly appreciated <form action="https://www.paypal.com/donate" method="post" target="_top"> <input type="hidden" name="hosted_button_id" value="74PGN8ZXHQVHS" /> <input type="image" src="https://www.paypalobjects.com/en_US/i/btn/btn_donate_LG.gif" border="0" name="submit" title="PayPal - The safer, easier way to pay online!" alt="Donate with PayPal button" /> <img alt="" border="0" src="https://www.paypal.com/en_US/i/scr/pixel.gif" width="1" height="1" /> </form>