LABRST 1C03 Lecture Notes - Mercantilism, Surplus Labour, Fixed Capital
5 Mar 2013
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Document Summary
Adam smith was one of the one the many who are in favour of capitalism. Capitalism is an economic system based on the generation of profits from the private ownership of the means of production. Capitalism doesn"t develop as a theory until the 18th century (adam smith) The development of capitalist theory is tied to the rise of the merchant class in the. A capitalist buys land, labour and the means of production and then sells their product to buyers in the market place. Those who buy low and sell high make a profit. Selling goods profitably allows for capitalists to expand their operations, grow their firm innovate, make their goods more cheaply and enrich the investors. Capitalist firms compete against each other in a free market. Those firms that provide profitable goods and services expand. Capitalism is a system based on production in exchange and alienated labour.
