Course:WMST 307: Student Pages: 307: Tiffany Chan

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 is an “economic, political and social system based on private ownership of poverty, business and industry, and directed towards making the greatest possible profits for successful organizations and people." Moreover, it is “an indirect system of governance for economic relationships." Contemporary capitalism can be viewed not only as an economic way of to govern, but as “a system of social action and a set of social institutions". Capitalism is driven not by market actors who decide the benefits and costs of the market, but by the government and legislatures. Further, “institutions shape market frameworks,” where political authority plays a contributive role in governing the institutions and markets in a capitalist economy. While proponents of capitalism argue that it promotes economic growth, benefiting the vast majority, the “gains of labor productivity flow upwards” and rarely “trickle down,” resulting in economic inequalities. Although there is increased worker productivity and increased overall wealth, the economic surplus disproportionately benefits the wealthy rather than the workers. One can argue that capitalism is effective system as it allows the competitiveness allows for a “multiplicity of independent enterprises” that encourages innovation. However, this system also highly exploitative, as each innovation usually result in the interests of a group being undermined.

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