Example of Capitalist Countries

Geography / by admin / July 04, 2021

They are defined as capitalist countries those who govern their economic system based on three parameters:

Power of the economy
Private property and
Capital.

Capitalist countries have a political system that is based on the economy and the individual, since the owner of capital is the owner of the means of production and also profits. In these countries the worker has a profit proportional to what he can offer, which is labor power.

The regime is based on the law of supply and demand the one that is complemented with the free market, hoping that the needs and the demand regulate the price of the merchandise and the necessary level of production. Socially, these countries tend to have a unequal level in your societySince the owners of capital and the means of production have advantages and workers are relatively restricted in their rights.

Brief history of capitalism:

In times such as the Middle Ages and the Renaissance, the foundations of the capitalist economy began, with the emergence of the first banks, created | ores of wealth by buying, selling and renting money: the exchange system and the credit. The bourgeois class (inhabiting the borough or city) also began to form, made up of merchants, bankers and owners of the workshops.

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The capitalist system had its greatest boom and took its current strength from the end of the 18th century, with the industrial revolution, when the bourgeois began to become entrepreneurs. This model of economic development was generalized throughout the West.

In the 19th century, Karl Marx and Frederick Engels thought of an economic system in which equality between people and their lives would be sought. development, and to guarantee that equality, private property had to disappear and the means of production had to be controlled by the condition. This system is communism.

However, communism was not put into practice until the Russian Revolution of 1917, when the monarchical government of the Tsars was overthrown, and the Bolshevik Revolution was instituted. This caused an alarm among the rest of the countries of Europe, however, they could not Isolate Russia, since, despite its revolution, its participation was decisive in winning the First War World.

Later, western powers supported some dictatorial governments such as Fascist Italy and Nazi Germany, with the idea that they would fight and prevent the spread of communism. However, with the invasion of France and Poland and the bombing of England, the West was downplayed, and in failing the German invasion of the USSR, the intervention of communist Russia was essential to win the Second World War.

The fact that the West and the USSR have won the war together, the fear of communism did not disappear, thus forming political-economic blocs, based on both military and system alliances political. On the one hand, the capitalist countries, in NATO, formed by the United States and the countries of Europe. Western, and on the other the countries of Central Europe and the USSR, grouped in the Warsaw Pact, and economic communist. The communist bloc would be joined by China, with the Revolution of Mao Tse Tung, in the 1950s. This period, which ended with the fall of the Soviet Union in 1991, was called the Cold War.

The rest of the non-aligned countries, the Third World, continued with their own political systems, many of which took both elements of the capitalist system and elements of communism, that is, an intermediate point: the governments socialists.

In this period, the identification of capitalist or first world countries emerged:

Australia
Canada
USA
France
Greece
England
Norway
Portugal

Since the fall of the USSR in 1991, the communist system has adapted to globalization and the market economy, almost completely disappearing today. This means that, today, capitalism and the market economy is the economic system that works in all the economies of the world, to varying degrees and with some nuances.