ISS 225 Lecture : capitalism.pdf
26 Feb 2014
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Capitalism began to develop in 18th century britain as part of the movement of individualism. Its basic principles were clearly stated by british philosophers, smith, david ricardo, and thomas malthus and john stuart mill. o o o. They assumed that mans needs were primarily individual rather than communal. Individual freedom could best be promoted, they reasoned, by granting ownership of the means of production (land, labor and capital) to private citizens rather than to the state. This economic system would be best with democracy because it would diffuse economic power, just as democracy has diffused political power. Just as government could be oppressive in a political sense, so a state-directed economy could control other vital aspects of people"s lives. Economic freedom, capitalist theorist believed, would also ensure economic and technological process. He works best when he has an incentive and when he is working for himself.
