Questions what is the main features of the socialist economy?

Describe the evolution of Capitalism!

Key words: medieval era, criticism, founders, economic system, ownership.

Capitalism, also called free trade economy or free enterprise economy, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately owned and production is guided and income distributed largely through the operation of markets.

In the medieval era, money could represent and convert only things that existed in the present. This imposed a severe limitation on growth, since it made it very hard to finance new enterprises.

Humankind was trapped in this predicament for thousands of years. As a result, economies remained frozen.

Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and promoted the idea that reinvesting profits in production leads to fast economic growth. But capitalism became far more than just an economic doctrine. It now encompasses an ethic – a set of teachings about how people should behave, educate their children and even think.

Its principal tenet is that economic growth is the supreme good, or at least a proxy for the supreme good, because justice, freedom and even happiness all depend on economic growth.

Although the continuous development of capitalism as a system dates only from the 16th century, antecedents of capitalist institutions existed in the ancient world, and flourishing pockets of capitalism were present during the later European Middle Ages. The development of capitalism was spearheaded by the growth of the English cloth industry during the 16th, 17th, and 18th centuries. The feature of this development that distinguished capitalism from previous systems was the use of accumulated capital to enlarge productive capacity rather than to invest in economically unproductive enterprises, such as pyramids and cathedrals. This characteristic was encouraged by several historical events. The founder of Capitalism believed to be Adam Smith.

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