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100
Bartering System during Early Human Evolution (100,000-60,000 BCE)
(Please note date should be between 100,000-60,000 BCE, marking the advent of Homo Sapiens and covering the approximated timeframe of communication) In our early stages of evolution, we've established the foundation of Capitalism by creating an unspoken bartering system. Humans used to trade goods for other goods in the past, and these initial goods had to be earned through work (hunting, digging, scavenging, etc.), all of which constitute the basic principles of capitalism. -
Period: 101 to
History and Development of Capitalism
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Jan 1, 1350
Crisis of the Fourteenth Century - Collapse of Feudalism/Manorialism
Throughout the 1300s, many events have contributed to the dismantlement of Feudalism (which, in itself, could be argued to have had similar principles as Capitalism) and the emergence of market-based Capitalism. These events range from the Black Death to the Great Famine, and seriously deteriorated agricultural production, forcing Lords to be more oppressive and provoking serfs and underlings to rebel and create their own assets to live off of. -
Jan 1, 1500
Establishment of Agrarian Capitalism in Europe
Though many Muslim nations established capitalist economies much earlier (Baghdad and other cities were centres of international trade in the 13th century), they were often invaded and dismantled before flourishment and spread. Europe slowly began relying on agricultural production again, this time under basic free-market standards, to boost its economy. England became a centralized economy by the 16th century, with a market hub in its capital, London. -
Adam Smith, The Wealth of Nations, and the Rise of Industrial Capitalism
Adam Smith, the father of modern economics and capitalist thought, published his book "An Inquiry into the Nature and Causes of the Wealth of Nations", which organized information about the functions and benefits of capitalism and established it as an essential component to democracy and Western culture. This book was extremely influential during its time, and further reinforced the confidence people had in capitalism as a system, which in turn intensified the employment of Industrial Capitalism -
The Growth and Use of Banks
Banks began employing systems of credit and financing around the end of the 18th century, allowing for a controlled capital market to occur. This was concomitant with the establishment of America and its democratic system, which shifted power into the hands of citizens to be able to work for their fortunes to achieve the lifestyles they wished to lead. -
Comparative Advantage and Free Trade in Globalization
David Ricardo, James Mill, and Robert Torrens developed their theory of comparative advantage, which allowed countries that produce products at the highest quality to send their materials to countries that can produce the products efficiently. This benefited both countries involved, and the practice s still used today between nations. New technologies spread across borders due to the desire for market economies and liberalist ideals, setting up the stage for globalization. -
20th Century Progression of Capitalism
Throughout this entire century, many events such as the internationalization of finance and the strict state control of foreign exchange rates consolidated world economies into a field of globalization, allowing for international trade and commerce to occur, which affected all cultures across the world. America capitalized on this by marketing their vision, values, and culture in general to foreigners and citizens. -
The Collapse of the Soviet Union
The political battle between Communism and Capitalism left the Soviet Union in a state of fragility, which ultimately lead to its dissolution. Losing the Space Race, political influence, and the Cold War were huge blows to the confidence people had in Communism, and thus the idea was dismissed as too utopian to be applied satisfyingly to a whole nation. Thus, trust was reinstated in the capitalist system, and the Western world continued to integrate capitalism with its culture. -
Capitalism Today
Today, Capitalism is reflected everywhere. Ads can be seen virtually anywhere, including in the privacy of one's home. People review products and services and recommend them to others. People with jobs are highly respected for contributing to the economy. Capitalism has become the economic form of natural selection; it is the survival of the fittest in a restless system. The Western world is constantly affected by Capitalism on a daily basis, as anything one sees is there because of money.
