because the working class are at the whim of the conditions the upper class bestows upon them. Competition The drive for accumulation invariably requires two capitalists hitting head to head. When this happens, both must create the most efficient system to generate the cheapest goods, to achieve the most capital. Example: Pin Factory can create more goods than separate pin makers Creative Destruction Definition: Displacement of one process or product by another at the hands of a giant enterprise. This term is identified with Joseph Schumpeter. Capitalism: Success and Failure Success Failure Indispensable for material well-being Inseparable from adverse social effects III. The Politics of Capitalism (Pg. 47) – Capitalism as a Political Order Relationship between economy and the state Economy State Appearance Factories, Stores, Banks Law & Order, Military Roles Produce & Distribute Govern Sovereignty International (Bound to no single political authority) Domestic Divided & United Duties of State A. Protect society from violence and invasion B. Protect from oppression from other members within it C. Public works and Institutions Two Realms A. Private Realm – motivation: drive for accumulation B. State Realm – motivation: national power & glory i. Assist & support accumulation because, as you cannot get blood from a stone, you cannot tax a dying economy. In summary… “ Business stands behind government in emergencies, while government stands behind business between emergencies” (Heilbroner, 57)
Keynesianism – John Maynard Keynes – 1936 New method to kick-start capitalism out of the depression Key Points include (As seen in my lecture notes) 100% Employment High Government Spending Positive Liberty (Freedom to reach potential) Welfare State Capitalism as a Singularity No non-capitalist country has attained the levels of political, civil, religious and intellectual freedom found in all advanced capitalisms ” ( Heilbroner, 69) Why? Economy within polity allows its citizens to make their livings without interdiction by an all-powerful regime. IV. The Market System (Pg. 71) “Markets are the conduits through which the energies of the system flow and the mechanism by which the private realm can organize its tasks without the direct intervention of the public realm ” (Heilbroner, 74)
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- Spring '11
- Capitalism, Robert Heilbroner, Heilbroner, Twenty-First Century Capitalism, Western Civilization Capitalism