capitalist mode of production

The capitalist mode of production it is the way in which a productive system is organized with the objective of making a profit.

This system replaced the feudal mode of production in Europe and spread throughout the world in later centuries.

Capitalist production

Throughout human history there have been several ways to produce goods, be they food, clothing or vehicles. We can mention the Asian, slave, feudal and capitalist mode of production.

The word capitalism comes from “capital”, that is, the money needed to start a business.

The capitalist mode of production is profit-oriented. This is the result of the investment made by an entrepreneur, after the sale of his products or services.

In capitalism, the engine of productive and social relations is money. In order for it to circulate, capitalism transforms everything into merchandise, as these can be bought and sold, in exchange for money.

In order to encourage people to buy and consume, capitalism ends up creating needs that don't exist, launching new products, so that individuals can continue to spend their money.

With this mentality, everything that does not bring benefits is not used, but discarded. On the other hand, what makes a profit is exploited.

Characteristics of capitalist production

Ownership in capitalist production

In the capitalist production system, property is private. This means that land, machinery, transport, real estate will belong to someone.

In order to guarantee the validity of this property, a bureaucracy arises that guarantees the property rights to the individual or a company. This bureaucracy is represented by contracts, law and professional codes, which ensure the proper functioning.

One of the greatest theorists of the importance of property within the capitalist mode of production was the Englishman John Locke (1632-1704).

Labor relations in capitalist production

All work performed within the capitalist mode of production is compensated with money.

Thus, there are occupations that are considered more important, because they are better paid, as they require more study time.

On the other hand, there are the functions that do not receive so much money, because they are considered "minor" for the functioning of society. This will give rise to social classes.

Social classes in capitalist production

Society is also divided into groups that were termed “social classes” by the scholar Karl Marx. In fact, it was this thinker who best explained the functioning of the capitalist mode of production.

According to Marx, there are two major social classes in capitalism. Those who own the goods of production, the bourgeois, and those who do not. Better said, they only have their children, their offspring . In this way, they were called the “proletariat”.

As the proletariat does not have the means to produce commodities, it sells its labor power to the bourgeoisie. In return, he receives a cash salary, which he will use to cover his needs.

The capitalist mode of production makes the worker not aware of his role in society. This phenomenon was called by Marx "alienation" and makes him just a spectator and not an active citizen.

See also:What is the Alienation of Labor for Marx?

Types of Capitalism

Capitalism is not understood by all governments and thinkers in the same way. Although its objective is the same - profit - the way to obtain it varied according to the season and the country.

One of the characteristics that differentiate the types of capitalism is the degree of state intervention. Thus we have liberalism, proposed by Adam Smith, which preaches that the State should not interfere in economic affairs, leaving this function to the market.

On the other hand, we have the theory developed by John Maynard Keynes (1883-1946), Keynesianism, which defends State interference in the economy in order to ensure the well-being of the whole society.

Opposition to Capitalism

Likewise, there are people who do not agree with the capitalist mode of production.

In the 19th century, a number of social scientists tried to formulate alternatives to the capitalist mode of production. In this way, anarchism, communism and socialism emerged, which sought other avenues of productive and social organization.

See also:Differences between Capitalism and Socialism

Origin and phases of Capitalism

Capitalism emerged at the end of the 15th century and marked the end of the feudal mode of production. This replacement took place slowly, but affected all sectors of society, and is called the transition from feudalism to capitalism.

From Europe, capitalism passed to the colonies of America and Africa. There, the riches that made the European continent strengthen and develop were extracted.

Thus, capitalism is divided into three major phases:mercantile capitalism, industrial capitalism and financial capitalism. Each stage is named after the most important economic activity of the moment:commerce, industry and financial transactions.