Capitalism & Globalization Reviewer

Flashcards covering the definitions, principles, types, advantages, and disadvantages of capitalism as outlined in the lecture notes.

Capitalism

An economic system and mode of production where trade, industries, and the means of production are mostly or entirely privately owned and operated for profit.

Capital

Money used to generate more profit.

Core Process of Capitalism

The cycle where money is invested to make more money.

Foundations of Capitalism

The three pillars consisting of wage labour, private ownership, and production for exchange and profit.

Private property

A feature of capitalism where individuals own property and resources.

Large-scale production

The production of goods in large quantities to achieve higher profit.

Profit motive

The principle that production is conducted mainly for the purpose of earning profit.

Price mechanism

A system in capitalism where prices are determined by the forces of supply and demand.

Wage institution

A feature where employers try to minimize wages while maximizing workers' output.

Money and credit

The practice where businesses borrow capital to expand their operations.

Laissez-faire competition

Minimal government intervention where market forces alone control production, distribution, and exchange.

Responsible Capitalism

A type of capitalism featuring a free market with some government regulation.

Turbo Capitalism

Highly deregulated capitalism characterized by privatization and lower taxes.

Crony Capitalism

An economic environment where business success depends on political connections.

State Capitalism

A system where government-owned enterprises actively participate in the market.

Advantages of Capitalism

Key benefits including health improvements, social good, encouragement of excellence, freedom, economic growth, and equality of opportunity.

Disadvantages of Capitalism

Negative outcomes including waste, starvation, danger, propaganda, and pollution.

Captains of Capitalism

Prominent figures such as Andrew Carnegie, J.P. Morgan, and John D. Rockefeller.