Origins of Capitalism - Historum

**Rosi** · January 21st, 2011, 01:56 AM

How did it come to be? How did it spread and become so influential, deterministic even?

Some thoughts:

Quote:

The essential elements of this system are already discernible in the thirteenth through fifteenth centuries; during the sixteenth century, the system in all its facets begins to crystallize. In successive waves, it enriches and secures the preeminence of first Holland then England and France and, finally, the United States, Germany, and Japan.

A history of capitalism, 1500-2000 by Michel Beaud

The enablers of capitalism, according to this author, are as follows:

1) The large capital accumulated during the Crusades;
2) banking and finance in the "Italian republics of the thirteenth and fourteenth centuries, and then in Holland and England";
3) industrial revolution; and
4) "colonial pillage".

According to Wikipedia, mercantilism was a precursor to capitalism.

Quote:

While some scholars see mercantilism as the earliest stage of capitalism, others argue that capitalism did not emerge until later. For example, Karl Polanyi, noted that "mercantilism, with all its tendency toward commercialization, never attacked the safeguards which protected [the] two basic elements of production—labor and land—from becoming the elements of commerce"; thus mercantilist attitudes towards economic regulation were closer to feudalist attitudes, "they disagreed only on the methods of regulation."

Capitalism - Wikipedia, the free encyclopedia

Furthermore,

Quote:

In the Middle Ages the attitude of the church to usury means that capitalism has little chance of developing. Even so, this is the period in which its roots lie.

With the rapid development of European trade and prosperity in the 13th century, cities in Italy and the Netherlands witness a creation of wealth which is capitalist in kind - because any merchant is in essence a capitalist, risking his pot of money each time he buys in one place to sell in another.

Florence in the 14th century demonstrates more familiar indications of capitalism. It has its great banking families, engaging in transactions across the breadth of Europe. It even has a successful strike, by underpaid day workers in the cloth industry who want a share in the benefits enjoyed by their employers.

HISTORY OF CAPITALISM

What are your thoughts? Also, what, if any, competition did capitalism have before Marx appeared?

Thank you for reading and/or replying.

corrocamino · January 21st, 2011, 02:47 AM

What is called "capitalism" is merely a manifestation of shared human nature: acquisitiveness (bringing stuff back to the cave). If you're good at it, eventually you pay others to get stuff for you, so to speak, at a profit.

**Spartacuss** · January 21st, 2011, 02:53 AM

As I have just awakened and, sitting down with my coffee, I noticed this thread and the first thing that popped in my mind was the Italian city states of the 14th. Venice, more than the others.

**Rosi** · January 21st, 2011, 03:20 AM

Quote:

Originally Posted by corrocamino

What is called "capitalism" is merely a manifestation of shared human nature: acquisitiveness (bringing stuff back to the cave).

Does that mean socialism is unnatural?

blacksmit049 · January 21st, 2011, 04:32 AM

Competition is in my opinion of the cause of the birth of capitalism. No one wants to get behind because all of those that are overshadowed by the most influential are taken out of the business. Capitalism is mostly analogous to politics.

**Rosi** · January 21st, 2011, 04:40 AM

Quote:

Originally Posted by blacksmit049

Competition is in my opinion of the cause of the birth of capitalism. No one wants to get behind because all of those that are overshadowed by the most influential are taken out of the business. Capitalism is mostly analogous to politics.

In that case capitalism should have been widespread in Asia as well. Historically speaking.

blacksmit049 · January 21st, 2011, 04:55 AM

Quote:

Originally Posted by Rosi

In that case capitalism should have been widespread in Asia as well. Historically speaking.

But industrial revolution takes part in much greater economic achievement why capitalism pulls out mercantilism. Also European expansion on all parts of the world help establish the driving force for competition. Marco Polo tells us how beautiful the east, I don't know exactly if it supports the age of exploration. Portuguese at first, then Spanish, then France and Britain, then the Dutch. Economic competition in Europe has much pressure than the Asian counterparts. So historically speaking too, European powers and merchant sees the potential of expansionism and colonialism as a source of wealth.

**Zeno** · January 21st, 2011, 05:21 AM

One early enemy of capitalism was the nobility. The aristocracy gained its wealth from holding land, not so much from making money. When in cities a "bourgeoisie" developed, the nobility tried for centuries to limit their political power.

The amount of money money makes, however, seduced states into so called "state-capitalism", often funded by the rich bankers families.

In short the states all went bankrupt and became debtor to the banks (which are owned by a couple of families) and that's where we are today.

corrocamino · January 21st, 2011, 05:38 AM

Quote:

Originally Posted by Rosi

Does that mean socialism is unnatural?

No. Socialism, in some degree enters into the mix. No society, no capitalists. Everything in human affairs is gray-scale (not to mention evolutionary).