Capitalism, the most widely accepted economic system in today’s world, has been with us for centuries. However, there are also opinions that oppose or support this economic system. So what is capitalism? Is Turkey capitalist? Let’s take a closer look at those who wonder about this effective economic system.
Economic systems shape the world we live in. We live, earn money and even fight according to these economic systems. economic system that is widely accepted in today’s world. capitalism has been with us for hundreds of years. As a matter of fact, there are people who support this economic system as well as people who criticize and opposing views like Karl Marx. Alright, What exactly is capitalism?
What is capitalism Of course, it would be more appropriate for master economists to answer the question. However, as we all know, economics is a field full of complex and technical terms. Therefore, without going too deep, in a way that everyone can understand. what is capitalism, who is its founder, We tried to answer questions such as whether Turkey is a capitalist, and we talked about what is being wondered about this widespread economic system.
What is capitalism?
Capitalism is an economic system, not an ideology. Capitalism means that the means of production belong to someone, that is, private property and this in order to bring high profits to the owners of the means of production. advocates its use. In the capitalist system, all the decisions on the economy are made by the people who own the capital and the means of production, namely the bosses.
Although this is the general definition, two different definitions of capitalism can be made by experts. According to the first definition, capitalism is only for profit, that is, to gain added value It is the economic system in which the surplus is made and the surplus value is resold. According to the second definition, capitalism is an economic system in which labor power is offered for wages and at the same time a mode of production.
The founder of capitalism and the story of its emergence:
Although the definition of capitalism was made by economists such as Adam Smith, David Ricardo and John Stuart Mill in the 18th century, it is actually with capitalism in the first age, in the middle ages and we encounter it actively after the 16th century. From this point of view, it is possible to say that the birth of humanity and the birth of capitalism took place together.
The founder of capitalism is Adam Smith, who is also called the Father of Capitalism. Translated into our language as The Wealth of Nations In his 1776 book, Adam Smith defined the political economic system and actually revealed the capitalist economic system. In this book, he explained economic concepts such as perfect competition, capital, invisible hand, labor, wages and similar economic concepts through different metaphors.
Adam Smith has made various economic critiques throughout this book. The most intense criticism is It was against the states that intervened in the markets. He talked about the free market economy in which the market is self-governing and argued that the people, namely the bosses, who hold the power of production without any external influence, should manage the economic system.
Different approaches to capitalism:
Even today, The Wealth of Nations in terms of forming the foundations of many economic theories. It is an important work. It made a sound not only today, but also when it was released. For example, David Ricardo developed Adam Smith’s theories and supported free trade with his theory of comparative advantage.
Max Weber, a German sociologist, rationalize and thus increase efficiency. defended. According to Weber, capitalism is the result of the new entrepreneurial spirit. Again, Weber argues that capitalism is a threat to the cultural values of societies and that it will trap people’s freedom in an iron cage.
According to the German Historian School, capitalism emerges as a result of the combination of the money economy with the profit motive. If the Austrian School that capitalism is a developing system He argues that production power should be realized in large industries instead of small seconds. This is the most common thought of the 20th century.
Marxist economic theory:
Of course, speaking of capitalism, it is impossible not to mention Karl Marx, the founder of scientific socialism. Karl Marx evaluates capitalism in the historical process and in this economic system that the means of production are in the hands of the bourgeois class He argues that the means of production work for the profit of this class and make them legitimate.
Capital, in his famous work, states that capitalism transforms the labor power of workers into a commodity and that what is converted into commodity, that is, surplus value, it also tells that the labor power was confiscated by the capitalists. He argues that this cycle between the workers who produce the labor power and the capitalists who confiscate this labor power constitutes the basis of the class war.
Vladimir Lenin, the founder of the Union of Soviet Socialist States, took Marx’s theories one step further in his work titled Imperialism, the Highest Stage of Capitalism, which he prepared in 1916. According to this, capitalism has taken on a monopolistic structure by accelerating the search for new sources and markets and has become imperialism. According to Lenin, imperialism is the end point of capitalism.
Is Turkey capitalist?
The Republic of Turkey implemented a mixed economic system, a successful combination of socialist and capitalist economies, in the early years of its establishment. This structure, which was applied systematically, has worked so successfully that Kemalist Economic Model also named. According to this model, the state is effective on the markets, but it also gives broad rights to the private sector, taking into account the public interest.
Over the years, our country has shifted towards a free market economy and has even become a true capitalist. The economic system currently applied in our country is capitalism. According to the British economist John Maynard Keynes, the state’s withdrawal from the means of production and the granting of wide rights to the private sector without regard to the public interest show that the country applies a capitalist economic system.
We answered questions such as what is capitalism, how did it come about, who is its founder, is Turkey a capitalist, and we talked about the things that are curious about this economic system. certainly Even Weber spoke of capitalism as the most complex system in human history. It is not possible to share all the details in such a short article, but it is possible to have much more detailed information on the subject by starting to read one of the volumes written on the subject.