Fullerton
Capitalism is not merely an economic system and financial model , but a peculiar attitude of mind and behaviour. Basically it springs out of the notion of the capitalist that he has earned his wealth by his own ability, skill, knowledge and sagacity. So he has an absolute right to expend and use this wealth. He develops a superiority complex and ignores the fact that he has come to possess wealth not only by his own ability, but also due to many other factors operating in the society. He forgets that it is his human and moral obligation to pay a just compensation for these social factors. This mental attitude of the capitalist opens the way to the economic exploitation of weaker members of the society. The capitalist uses his money power to draw more and more white or black money into his coffers.
Rather than invest his monetary resources in social welfare the capitalist fritters them away in sensual pleasures and luxurious living. This capitalistic mind-set and its resultant economic and social strife has existed in one form or other in all epochs of human history.
Modern Capitalism:
Modern capitalism is a vast, organised and corporate form of Qaruni mind-set. It began with the destruction of Feudal System in Europe caused by the merchants, bankers and manufacturers. The Renaissance brought about an overall progress of Arts and Sciences. The West entered into a new world of trade and discovery. They secured valuable resources for economic development The need and importance of productive resources, particularly capital became prominent for continuous economic development.
In order to coordinate and organize the process of production and the sale of goods and services in home and international markets the setting up of new corporations and institutions become inevitable.
Since capital was the nucleus of this system, it came to be known as capitalism. This system had taken deep roots in Europe by the time of the Industrial Revolution and at the beginning of the20thCentury it had reached its zenith in America and Western Europe.
The spread of this system was unprecedented in the period of colonial expansion and with the exception of a few Communist countries, capitalism held sway in all the countries of the world. After the great depression of the 1930s, some countries introduced amendments in this system. State intervention in certain economic sectors Was increased. A sort of mixed economy was set up in which some sectors of the economy were taken under state control. Private and public sector existed side by side. In order to stem the tide of Communism in Russia and elsewhere, some importance began to be given to measures like protection of labour rights and social welfare schemes. Despite these measures, however, not much difference has occurred in the fundamental spirit, consequences and effects of this system. The evil of unjust distribution of wealth still clings to it. Concentration of wealth, unemployment, economic crises, existence of wealth and plenty side by side with poverty and deprivation and ageneral sense of economic insecurity are still inseparable parts of capitalism.
