Great importance for understanding a particular phenomenon public life have its signs. Capitalism is a system of economic relations based on the dominance of private ownership, freedom of enterprise and profit-oriented. It should be noted right away that this concept is the name of only an ideal model, since in no state in the world does such a structure exist in its pure form.

The emergence of the concept

Analyze features economic development countries from a historical perspective are helped by its signs. Capitalism is a term that has been actively used since the second half of the 19th century. It was first used in France, then German and English authors introduced it into scientific circulation.

An interesting fact is that at first it had a negative meaning. Scientists and writers put into this word a negative attitude towards the dominance of finance, which was observed in developed European countries in the middle of this century. Representatives of socialism (Marx, Lenin and others) used this concept especially actively.

Market theory and class conflict

Their characteristics help to characterize the features of economic and trade development. Capitalism is a system based on the free functioning of the market, which serves as an arena of confrontation between the working class and the owners. The first seek to sell their power at a higher price, the second - to buy it cheaper. In addition, the market is the main condition for trade, without which it is impossible to imagine the existence of the capitalist system. The second important feature of the system is the concentration of the means of production in the hands of the upper classes and the retention of labor power by the proletariat.

There is a constant struggle between these groups for labor and pay. This leads to class struggle, which in a number of states led to revolutions. However, practice shows that the capitalist structure is most acceptable for the normal functioning of states, and therefore, from the beginning of its emergence, it quickly spread throughout the world, capturing almost all spheres of social life, including politics and culture. The above features of the system were highlighted by the famous scientist Marx, who devoted one of his most fundamental monographs to this issue.

Protestant ethic concept

Its signs help us understand the reasons for the emergence of this new way of life for Western European history. Capitalism is not only a special but also a specific way of organizing society. This is exactly how this stage was considered economic history famous German scientist and sociologist Weber.

Unlike Marx, he believed that this system is inherent only in Western European countries. In his opinion, it arose in those states where Protestantism established itself, which developed in society a cult of labor discipline, a high degree of social organization, as well as the desire to make profit and income. He identified the following signs of the development of capitalism: competition among producers, the presence of a dynamic market, active use of capital in business activities, and the desire to obtain maximum profit. And if Marx believed that this structure not only influences, but also determines the policies of countries, then Weber contrasted these two social spheres, although he recognized that they were closely related to each other.

About innovation

The main features of capitalism became the object of study by the famous political scientist and sociologist Schumpeter. He identified the following features of this system: dynamic market, entrepreneurship and dominance private property. However, unlike these authors, the economist identified such an important component of capitalist production as the introduction of innovation. In his opinion, it is the introduction of innovations that stimulates the rapid development of countries' economies.

At the same time, Schumpeter attached great importance to lending, which provides entrepreneurs with the opportunity to implement modern technologies and thereby increase production efficiency. The scientist believed that this way of life ensured the material well-being of society and the personal freedom of citizens, but he saw the future of the system in a pessimistic light, believing that over time it would exhaust itself.

The emergence of manufactories

One of the main prerequisites for the transition from the feudal mode of production to the capitalist one was the departure from the old guild system and the transition to the division of labor. It is in this important change that one should look for the answer to the question of why the emergence of manufactures is considered a sign of the birth of capitalism.

After all, the main condition for the existence and normal functioning of the market is the widespread use of hired labor. In the 14th century, in many European cities, manufacturers abandoned the traditional recruitment of apprentices and began to attract people who specialized in one or another craft to their workshops. Thus arose what, according to Marx’s definition, is the main feature of the capitalist structure.

Types of enterprises

In Western European countries there were various types of manufactories, which indicates the rapid development and introduction of a new method of production. Analysis of the problem under consideration (why the emergence of manufactories is considered a sign of the birth of capitalism) allows us to understand the ways of economic development. The owners of scattered enterprises distributed the raw materials to workers at home, then, already processed, it went to a professional artisan, who, having made yarn, gave the material to the next manufacturer. So the work was carried out by a number of workers who transferred the goods produced along the chain. In a centralized factory, people worked in one room using technology. These different types enterprises are proven by the high rates of development of capitalist production on the mainland.

Scientific revolutions

Signs of the emergence of capitalism are associated with the characteristics of the European economy, where the transition to trade began very early thanks to the development of cities and the formation of markets. A new impetus for the development of the capitalist mode of production was the introduction of new technologies. This brought the economy to a fundamentally new level. The use of machines in factories allowed entrepreneurs to increase the volume of product sales. Advances in science have led to the creation gross product became cheaper because factories now used machines instead of workers.

The invention of the steam engine, electricity, and the construction of railways were of great importance. The discovery and development of new mineral deposits led to the rapid development of heavy industry and metallurgy. These changes completely changed the urban appearance of Western European countries, as well as Russia, where, after the abolition of serfdom, rapid development of industry began. So, the signs of capitalism in the 19th century were determined by the introduction of scientific achievements into production.

The emergence of monopolies

During the first stage of development of capitalism, production organizations were single and medium in size. The scale of their production was not wide, and therefore entrepreneurs could individually run their own business. In the 19th century, the system entered a new phase of development. The volume of production increased sharply, factories expanded, which led to the need to combine the efforts of entrepreneurs. Based on the above, we can identify the signs of monopoly capitalism: concentration of production, reduction in the number of factories, the emergence of large, capital-intensive enterprises.

At the turn of the century, heavy industry played a major role: mechanical engineering, metalworking, oil production and others. As a rule, consolidation occurred within a single industry, in which associations such as cartels and syndicates arose. The first concept should be understood as an agreement between several independent enterprises that agree on the price of goods, sales markets and quotas. The second term means a higher degree of monopolization, in which firms, while maintaining legal and economic independence, organize a single office for the sale of their products.

Large forms of enterprises

The signs of monopoly capitalism make it possible to understand what the features of the new stage of development of this system were. Trusts and concerns are considered the highest form of association of plants, factories and firms. The first organizations jointly carry out not only sales, but also production, and are also subject to a single management, but at the same time retain financial independence. Trusts are created in any one industry and immediately occupy a leading position. Concerns are considered the most developed form of association. They are formed in related industries and have common finances.

The merger of capitals ensures faster and more efficient integration, in contrast to the above forms. The signs of capitalism in the 20th century indicate the development of this system due to its entry into a new, higher phase of its development, which gave scientists the opportunity to talk about the onset of the phase of imperialism, which is characterized by the merger of banks and production.

Capitalism- an economic system of production and distribution based on private property, universal legal equality and freedom of enterprise. The main criterion for making economic decisions is the desire to increase capital and make a profit.

1. Other definitions

Reliance of the economy on capital

Capitalism- a socio-economic formation based on private ownership of the means of production and exploitation of wage labor by capital; replaces feudalism, precedes socialism - the first phase of communism. (Great Soviet Encyclopedia)

Capitalism is a modern, market-based economic system for the production of goods, controlled by "capital", that is, the value used to hire workers. (Oxford Dictionary of Philosophy)

Historical place of capitalism

Capitalism(market economy, free enterprise) - the economic system dominant in the Western world after the collapse of feudalism, in which most of the means of production are privately owned, and production and distribution occur under the influence of market mechanisms.

(Encyclopedia Britannica)

Capitalism Private property and the market economy pure, free competition capitalism pure capitalism , fr. Laissez faire capitalism ) - an economic system in which material resources are privately owned and markets and prices are used for direction and coordination economic activity

Capitalism.

Capitalism(Campbell R. McConnell, Stanley L. Brew, Economics)

- an economic system in which the means of production belong to private owners. Businesses produce goods for a market driven by supply and demand. Economists often talk about capitalism as a free market system governed by competition. But capitalism in such an ideal sense cannot be found anywhere in the world. The economic systems currently operating in Western countries are a mixture of free competition and government control. Modern capitalism can be seen as a combination of private enterprise and government control. (American Encyclopedia)

- a type of society based on private property and a market economy.

(Universal Encyclopedia from Cyril and Methodius) A type of socio-economic system, the general features of which are private ownership of the means of production, competition, the desire to make a profit as the driving force of economic development, a free market, wage labor for the majority of the population as the main source of livelihood.» .

The Oxford English Dictionary notes that the word "capitalism" was first used in 1854 by the novelist William Thackeray to refer to the set of conditions for owning capital. In 1867, in his book Capital, Karl Marx used the term “capitalism” to refer to the capitalist mode of production, as well as “capitalist” to mean the owner of capital. The term was first used to denote an economic system in 1884 in Douhet’s book “Better Times.”

Capitalism is an economic abstraction in which the characteristic features of the economy at a certain stage of its development are highlighted and less significant ones are discarded. The real economy of specific countries has never been based solely on private property and has not provided complete freedom of enterprise. Features unusual for capitalism have always been present to one degree or another - class privileges; restrictions on property ownership, including restrictions on the size of real estate or land; customs barriers; antimonopoly rules, etc. Some of them are a legacy of previous eras, some are a consequence of the development of capitalism itself.

3. Structure and description

Capitalism has the following distinctive features:

The economy is based on the production of goods and services, as well as commerce and other legitimate economic activities. Most goods and services are produced for sale, but subsistence farming is not prohibited either.

Exchange occurs in free markets based on mutually beneficial transactions, and not under coercion, as is the case in other economic systems.

The means of production are privately owned (See capital). Profit on invested capital is also the property of the owners of the latter and can be used by them at their own discretion: both to expand production and for personal consumption. The basis for the division of profits between capital owners is the share of capital provided.

The source of vital benefits for the majority of members of society is labor not under coercion, as is the case in other economic systems, but on the terms of free hiring, that is, the sale of labor in the form of wages.

Capitalism is most fully examined in the works (chronologically): Adam Smith, David Ricardo, Karl Marx, Max Weber, Ludwig von Mises, Eugen von Böhm-Bawerk, Friedrich von Wieser, F. A. von Hayek (Nobel laureate in economics) and others .

Classes of capitalist society, from top to bottom:
Nobility(including the king) - "We Rule You"
Clergy - "We are fooling you"
Army - "We're shooting at you"
Bourgeoisie - "We eat for you"
Workers And Peasants - "We work for everyone", "We feed everyone"

Marxists and anarchists divide capitalist society into social classes. In their opinion, the ruling class of capitalist society, possessing property (in the form of money, means of production, land, patents) and existing at the expense of income from this property, is the bourgeoisie.

Under capitalism, the largest number is the working class (proletariat), which lives by selling its labor power and does not have the means of production at its disposal. In this latter sense they also speak of the mental (intellectual) proletariat.

Currently, in connection with the transition to a post-industrial society, the importance of the “middle class” has increased, the upper layer of which includes managers and highly qualified specialists, and the lower layer - other employees.

5. History of capitalism

Mark Bloch in his work “Apology of History” notes the difficulty of specifying the specific time of the emergence of capitalism:

To what date should the emergence of capitalism be attributed - not the capitalism of a certain era, but capitalism as such, Capitalism with a capital C? Italy of the 12th century? Flanders 13th century? The times of the Fuggers and the Antwerp stock exchange? XVIII century or even XIX? There are as many birth records as there are historians.

The era of primitive accumulation of capital in Europe is considered to be the time from the mid-15th century to the mid-18th century. At this time, there was an increase in trade, as well as the invention and development of institutions serving it (bills of exchange, banks, insurance, joint stock companies). Rulers Western Europe began to pursue a policy of mercantilism, which was based on the theory that it was necessary to sell abroad more than to buy there, and receive the difference in gold. To obtain the greatest income from exports, mercantilist theory recommended the use of monopolies, the provision of which turned rulers and their associates into allies of traders. From the 15th century in England, the process of peasant dispossession (enclosure) began; somewhat later, similar processes occurred in Germany and other countries of Western Europe, as a result of which many rural residents moved to cities, increasing the labor supply there.

J. Watt's steam engine

Already in the 14th century, the first manufactories arose in the cities of Italy. By the 18th century, they had become common throughout Western Europe. But the emergence of industrial capitalism dates back to the turn of the 18th and 19th centuries. According to Marx, “the mill created feudalism, and the steam engine created capitalism” (“Misere de la philosophie” (The Poverty of Philosophy, 1847)). The use of steam engines leads to the fact that workshops and manufactories are transformed into huge factories. Craftsmen, who initially owned their own means of production, are gradually turning into a class of wage workers, deprived of ownership of the means of production - the proletariat. Manufacturer owners and bankers become capitalists who form a new ruling class, pushing aside the former landowning nobility. The Industrial Revolution was accompanied by a sharp increase in labor productivity, rapid urbanization, the beginning of rapid economic growth (before this, economic growth, as a rule, was noticeable only on a scale of centuries), and a historically rapid increase in the living standards of the population. The Industrial Revolution allowed the transition from an agrarian society (where the majority of the population lived in subsistence farming) to modern urban civilization in just 3-5 generations.

Weaving mill in Reddish, UK

Rapid urbanization and the increase in the number of wage workers have exacerbated social problems. Throughout the 19th and early 20th centuries, the living conditions of a large number of the urban population did not meet basic sanitary and hygienic requirements. The introduction of machines made it possible to use low-skilled workers with a short period of training and who did not have great physical strength. Industry began to use female and child labor on a large scale.

A young spinner in South Carolina, USA, 1908.

In France, Great Britain and other countries, already at the end of the 18th century, workers began to strive to form trade unions. However, these associations were opposed by legislation that prohibited all kinds of associations and gatherings of workers to pursue common interests under pain of criminal punishment. Workers' unions began to organize secretly. At the end of the 18th and first half of the 19th centuries, workers' dissatisfaction with their situation led to numerous strikes and riots, accompanied by looting and destruction. The workers at that time considered machines and factories to be the cause of their impoverishment and turned their hatred against them. Such unrest includes, for example, the Luddite movement in Great Britain, unrest in France in the 30s and 40s, unrest in Silesia in 1844, etc.

The first organized labor movement can be considered Chartism in Great Britain in 1837-1848. The Chartists demanded that workers be given the right to vote. In the class struggle of workers, two currents emerge - economic and political. On the one hand, workers united in trade unions and organized strikes to raise wages and improve working conditions, and on the other hand, recognizing themselves as a special social class, they sought to influence the course of political life in their countries to adopt legislation protecting their rights and carry out social reforms. At the same time, socialist and communist, as well as anarchist ideas began to spread among the workers. The most radical supporters of these ideas called for a social revolution. The first major revolutionary action of the working class was the uprising of June 23-26, 1848 in Paris. In the second half of the 19th century, social democratic parties defending the interests of workers began to emerge.

Miners' strike in Durham, England (1863)

Social protests and the desire to reduce political instability forced politicians to support the development of social programs and state regulation of relations between employees and their employers. Gradually, legislative prohibitions on workers' organizations were lifted. At the end of the 19th and beginning of the 20th centuries, state social insurance in case of disability, health insurance, benefits for the unemployed, and old-age pensions were introduced in Western European countries. This is how the foundations of a social state arise.

Colonialism was a characteristic element of developing capitalism. In the 18th-19th centuries, Great Britain created a colonial empire, which became a market for its industry. In the 19th century, rapid industrialization led to increased trade between European powers, their colonies, and the United States. During this period, trade with developing countries was often unequal.

In developed capitalist countries, the working class achieved after the First World War the introduction of universal suffrage, an 8-hour working day, recognition of the practice of collective bargaining, and the adoption of more progressive social legislation.

The global economic crisis of the late 1920s and early 1930s was a serious blow to the world capitalist system. State regulation measures were urgently required and social protection, introduced into the USA by the government of F.D. Roosevelt as part of the “New Deal”. In England, a significant event in political and legal life was the report of W. Beveridge in parliament (1942), which spoke about the principles of the “welfare state” (Welfare State). The term “welfare state” was used as coinciding mainly with the concept of “welfare state”. They began to talk about Beveridge's “social protection model”. The Labor government mainly implemented this model in Great Britain, forming a social protection system since 1945, including the provision of state guarantees for the population, the establishment of the employer's obligation to provide social insurance for employees with their partial participation, as well as the employee's obligation to provide additional personal insurance. Basic living conditions were ensured - state (free) healthcare, equal opportunities for families in raising children (child benefits), prevention of mass unemployment.

In the 40-50s, the era of scientific and technological revolution began in the most developed countries, as a result of which the transformation of industrial society into post-industrial society took place. The structure of labor resources is changing: the share of physical labor is decreasing and the share of mental, highly qualified and creative labor is growing. The share of the service sector in GDP begins to prevail over industry.

View of La Défense business district in Paris

The end of the 1970s and the beginning of the 1980s was marked by a crisis of the ideas of the welfare state in the UK and the USA, where Thatcherism and Reaganomics prevailed.

After World War II, globalization accelerated its pace. It creates conditions for access of less developed countries to the advanced achievements of mankind, ensures resource savings, stimulates global progress, but at the same time it also has negative consequences.

5.1. The role of the reformation

Many Western historians and economists - Max Weber and others - believe that the Reformation, the emergence of Protestantism and especially the development of the Protestant work ethic played a major role in the formation of capitalism.

6. Development of capitalism in Russia

Capitalism in Russia began to develop after 1861 (the abolition of serfdom) and this development occurred at a rapid pace, but after the Bolsheviks came to power as a result of the October Revolution of 1917, it was stopped.

In 1987, as part of the proclaimed “perestroika” policy, certain elements of capitalism were introduced into the Soviet administrative-command economic model: private entrepreneurship in the form of cooperatives and the creation of joint ventures with the participation of foreign capital were allowed, while the introduced changes did not change the essence of the existing system. However, after the collapse of the USSR in 1991, Russia began radical economic reforms, including privatization, which meant a transition from socialism to capitalism.

7. Historical role of capitalists

There is debate regarding the historical role of capitalists. Marxists emphasize the contradictions of capitalism. On the one hand, they are seen as exploiters who appropriate the surplus value created by the labor of hired workers. On the other hand, they point to the progressive role of capitalism in the development of the means of production and the preparation of prerequisites for a higher social formation. Marx notes the main contradiction of capitalism - between the social nature of production and the private nature of appropriation of the results of this production. Other researchers see capitalists only as industrial entrepreneurs who implement new technologies (Ford, Bell, Jobs) and explore new territories (Rhodes, Hughes).

8. Surrogate capitalism

According to the academic work of Yoshihara Kunio Yoshihara Kunio), surrogate capitalism is a reference to the early developing economies of East Asia and their dynamic and technologically intensive economic developments. Yoshihara's definition classifies the capitalist economic engines of the Japanese, South Korean and Taiwanese nations as what might be called "false capitalism." It refers to the abilities of organizations and governments to take advantage of comparative national advantages and artificially stimulate the economy towards more complex economic structures, specifically similar to those of developed Western countries, including areas of capital investment and technology-intensive production.

9. Types of capitalism

State capitalism

Democratic capitalism

Collective capitalism

People's capitalism

Peripheral capitalism

Technocapitalism

Turbo capitalism

Eco-capitalism

Anarcho-capitalism

Literature

K. Marx “Capital” Volume One

O. Boehm-Bawerk Capital and profit. History and criticism of theories of interest on capital

Böhm-Bawerk O. Criticism of Marx's theory: trans. with him. - Chelyabinsk: Socium, 2002. - 283 pp. - ISBN 5-901901-08-8.

M. Friedman: Capitalism and freedom (HTML version)

Max Weber " Protestant ethic and the spirit of capitalism"

J. A. Schumpeter Capitalism, Socialism and Democracy: Trans. from English /Preface and general ed.

V. S. Avtonomova. - M.: Economics, 1995. - 540 p. - (Economic Heritage) - ISBN 5-282-01415-7

Bibliography:

Akulov V.B., Akulova O.V. “Economic theory”, Textbook. Petrozavodsk: PetrSU, 2002 “Now we can identify the criteria that guide capital when deciding on the scope of its own activities. Obviously, the entrepreneur will focus on the profit that he can get by investing in this business (expected profit). Taking into account the motives of the behavior of capitalists, it is quite simple to conclude that capital will be interested only in those areas of activity where, with a sufficiently high degree, it is possible to obtain a profit not lower than the average.”

Capitalism of the 21st century Friedrich August von Hayek “The criteria for capitalist social order in the economy should be the concepts: “rate of profit” and “free competition”... The criteria for capitalist order in the public sphere should be the concepts: “private person”, “civil society” and “individual Liberty"."

Philosophy, Oxford University Press, 1995, p. 119

Universal encyclopedia from “Cyril and Methodius”

Mark Block. Apology of History, IV, 3

Marx K. Capital, vol. I. Gospolitizdat, 1995, p. 164. "»

Considering the process abstractly, that is, leaving aside circumstances that do not follow from the immanent laws of simple commodity circulation

Philosophical Dictionary. PHILOSOPHY OF HISTORY K. MARX: “The variety of material that should be “subsumed” under Marx’s categories of “feudalism”, “capitalism”, required structural organization... Abstractions “capitalism”, “socialism”, etc. are still used to introduce political praxis effective value orientations."

Milton Friedman, Capitalism and Freedom, Chapter 1: “The working model of a society organized through voluntary exchange is the free private enterprise market economy, that is, what we have called free competitive capitalism.”

Yavlinsky G. What kind of economy and what kind of society are we going to build and how to achieve this? (Economic policy and long-term strategy for modernization of the country) // Issues of Economics. - 2004. - # 4. - P. 4-24. “In fact, “capitalism” and “market” are abstract concepts, nothing more than a tool for theoretical analysis.”

Minus income tax, which can reach very significant amounts. For example, income tax in Russia in 2010 was 20%, on average in EU countries - about 50% (in Northern European countries - up to 58%) (See Taxes in European countries (English)) Marx K. Capital, vol. I. Gospolitizdat, 1995, p.»

179. "

Thus, the owner of money can only turn his money into capital if he finds a free worker on the commodity market, free in a double sense: in the sense that the worker is a free person and has his labor power as a commodity and that, on the other hand, On the other hand, he has no other goods for sale, naked, like a falcon, free from all the items necessary for the implementation of his labor power.

N. Rosenberg, L. E. Birdzell, Jr. “How the West became rich” Article "Working Class" in TSB Marx K. Capital, vol. III. - Marx K. Engels F. Soch., vol. 25. part I, p. 284. “Development of productive forces

Based on the rich historical experience of many countries, four main types of capitalism can be distinguished (Fig. 1.11). Of these, as already noted, the most unsightly initial capitalism - the period of spontaneous formation of the market system and the so-called “initial accumulation of capital” (Smith), during which the funds needed to start a business are concentrated in the hands of a relatively small group of the most energetic people capable of entrepreneurship. This is where the inevitable: redistribution of property, enrichment of some people at the expense of others, sharp stratification of society, a lot of abuses and lawlessness (seizure of someone else’s or common property, deception, inhumanity and violence, actions on the “grab and run” principle, super-exploitation of hired labor, predatory attitude towards the nature of the crime, etc.). No wonder the patriarch of American industrial business Henry Ford (1863–1947) once admitted that he could account for every dollar he earned except first million.

In pioneer countries capitalism (England, Holland, USA, etc.), the initial period lasted many decades (mainly in the 16th–19th centuries), until, finally, the bulk of the property found its owners and production was established, until the people themselves got tired of " lawlessness", did not calm down and did not work out legislative rules civilized life.

In Russia This period, through the efforts of the communists, was divided into two harsh “series”. The first began in the middle of the 19th century (especially violently after the abolition of serfdom in 1861). Here, too, the economy was invaded, as Dostoevsky writes, by “maleficent aliens, crazy with their own power,” who shouted in a wild voice to all of Russia: “Get out of the way, I’m coming!”

At the same time, the writer noted with alarm that things had become worse throughout society. “Something is floating in the air full of materialism and skepticism... like some kind of intoxication... the itch of debauchery... the admiration of the people for money, for the power of the golden bag... The adoration of free gain, pleasure without labor has begun; deception, every crime is committed in cold blood; they kill in order to take even a ruble out of their pocket" (15-13:34,35).

Thus, the negative effect of increasing “depravity” in society during the transition to capitalist freedom is a ubiquitous phenomenon. Self-centered and “impudently self-satisfied” businessmen (Dostoevsky) are usually not inclined to philosophical thoughts and do not immediately realize that more rational, safe and productive act not by deception and violence, but on the principles of civilized partnership, mutual benefit and, therefore, within the framework of the law.

“He who obeys the law is wise,” says the Bible. “If you disobey the law, you are with the evil,” and they are insignificant and will certainly be punished (6 Pr 28:7,4; 6:14,15). The second “series” of Russia’s transition to the market at the turn of the 20th–21st centuries clearly confirms this. Predatory capitalists destroy each other instead of fair competition. So God, in the words of Luther, “beats one villain with another” (10-366).

The remaining three types of capitalism are distinguished depending on in whose hands the main levers of economic and political power are concentrated and what form of this power in society is - bureaucracy, oligarchy or democracy (return to Fig. 1.11).

So, bureaucratic capitalism (or state capitalism) assumes that the economy and other spheres of public life are controlled by the state, i.e. first of all him bureaucratic apparatus a large tribe of officials. Hence, excessive interference of government agencies in the activities of citizens is inevitable (strict control, all kinds of checks and registrations, the need to obtain permits for everything, etc.), bureaucratic arbitrariness, corruption, collusion of bureaucrats with criminals, large and/or illegal businesses,

Rice. 1.11.

the flourishing of the “shadow economy” and the high criminalization of society, the low standard of living of the majority of the population against the backdrop of the super-wealth of corrupt officials and business leaders.

In particular, shadow economy - is an economic sector covering such types illegal activities like (1) clandestine production associated with violation of technological, labor protection, environmental and other requirements (for example, “black employment” - hiring an employee without registration on the staff, and therefore without pension contributions, without possible claims, etc.); (2) hidden entrepreneurship (or “self-employment”, without state registration), aimed at evading taxes and “interfering” rules; (3) activities related to prohibited production, drug trafficking, corruption, etc. According to various estimates, the share of such a “malignant” economy in Russia in the late 1990s reached 40-50% of GDP.

A somewhat similar picture is given by oligarchic capitalism. The economy and power here are in the hands of a narrow group of so-called " oligarchs " - the largest bankers, stock speculators, industrial, trade, newspaper and television magnates, etc. Wherein senior managers the state apparatus, political parties, and the media can be bought by oligarchs and work for them. From the criminalized tops, crime spreads in circles in society, for biblical wisdom says correctly: “If vicious people are in power, then sin will be everywhere” (6 Pr 29:16). As for the standard of living, it is low for the majority of the population, while the oligarchs and those who serve them are “fat” and living comfortably.

In contrast to this democratic capitalism (it is also called civilized, or popular, capitalism) is possible only in conditions mature and genuine democracy, when the people themselves elect and control power in society and when individual rights and freedoms are guaranteed. Works effectively here diverse, social market economy (free competitive market + social guarantees for all citizens), there is widespread entrepreneurship, a huge number of medium and small businesses operate.

At the same time, there are few poor and super-rich in the country, life is regulated by well-functioning and respected laws, and the state protects owners from bandits and extortion by bureaucrats.

Largest (60–80%) specific gravity in such a democratic society occupies a prosperous middle class - its main intellectual and creative force (hence the term “two-thirds society”). It covers representatives of a wide variety of professions: scientists, writers, artists, priests, teachers, doctors, lawyers, medium and small entrepreneurs, highly skilled workers, etc.

Typically these are people with good education, secure jobs, relatively high incomes and a modern lifestyle. They are professional, work hard, have property (land, houses, cars, securities), which means economically and politically independent. Their life credo: a person’s well-being is determined by his personal efforts - hard work, education, energy, entrepreneurship. It is not for nothing that a representative of the middle class in the West is often called in English self-made man [self-made man] is a self-made man who has succeeded on his own.

Of course real life“more cunning” and “rougher” than any smooth schemes. Everything in it can be in a complex interweaving. So, in Russia at the turn of the 20th–21st centuries, elements of initial, bureaucratic, and oligarchic “capitalism” were intricately woven together. People's capitalism, it seems, is still a long way off. Hence the social tension. When there is a lot of poverty and lawlessness in a society, Aristotle noted, it “inevitably becomes overcrowded with hostile people” (29-2,410).

However, what determines this or that specific appearance of society? A number of researchers [in particular, American economists and sociologists Thorstay and Veblen (1857–1929) and John Kenneth Galbraith (born in 1908)1 believe that, first of all, its most important institutions, or institutions. Hence the name of the theoretical direction founded by Vsblen - institutionalism.

Social institutions in general (from lat. institute - establishment, institution) are certain historically established institutions in society (traditions, norms, rules, organizational forms) that regulate the common life of people. For example, love, marriage, family, motherhood ( family institutions); business, market, money, bank, exchange ( economic institutions), state, army, court, parties ( political institutions); science, education, religion, moral standards ( spiritual institutions).

It is social institutions that “create and educate peoples” (Chaadaev), therefore, from their forms and content, from their rooting, legislative and organizational design in a given country ( institutionalization), The progress of society largely depends on the timely replacement of rapidly aging institutions with new ones. The more streamlined and perfect the social institutions, the higher their humane, moral, democratic and legal level, the less conflict and the more successful the society in its development.

For economy institutions such as family, hard work, property, household, law, taxes, goods, money, market, corporations, trade unions, etc. are of paramount importance, and most importantly, as we will see below, state.

• Industrial (from Latin industria - diligence, activity) - industrial (industry - the same as industry).
• Materialism (from the Latin materialis - material) - (1) in philosophy - a worldview that takes matter, objective reality (and not its subjective reflection in human consciousness) as the basis of everything that exists; (2) *narrow practical attitude to reality, excessive pragmatism.
• Skepticism (from the Greek skeptikos - considering, exploring) - (1) and philosophy - a position of doubt about the possibility of knowing reality; (2) a critical, distrustful attitude towards something.
• Civilized (from Latin civilis – civil) – (1) located at the level of a given civilization; (2) legal, cultural, enlightened, humane.
• Partnership (from English, partner, French partenaire - partner, associate) - cooperation between people in any activity based on mutual understanding and trust, respect for each other's interests and mutual concessions, responsibility and obligation to comply with contractual terms.
• Bureaucracy (from French bureau - bureau, office + Greek kratos - power, domination; literally: domination of the office) - (1) a form of power with the dominance of officials in society; (2) government officials themselves, especially senior management. Bureaucracy is bureaucracy, red tape, disregard for the essence of the matter and its replacement with formalities (certificates, reports, meetings). Bureaucrat – (1) a representative of the bureaucracy; (2) one who is prone to bureaucracy, to “playing with bureaucratic copying of papers”, “cluttering” (Lenin).
• Corruption (from Latin corruptio - damage, bribery) - bribery; venality officials; bribery, embezzlement and other abuses of official position to obtain unjustified advantages for oneself. Criminalization (from Latin criminalis - criminal) - (1) increased crime in society; (2) the penetration of criminal (criminal) elements somewhere, the subordination of someone or something to the influence of the criminal world.
• Tycoon (from Latin magnatus - rich, noble person) is a representative of big business, an influential person (in economics, politics, media, etc.).
• Credo (from Lag. credo - I believe) views, beliefs, foundations of myron views.
• Corporation (from Latin corporatio – association) – (1) Joint-Stock Company; (2) an association of individuals, organizations or firms based on the commonality of their professional or class interests (for example, a corporation of bankers).

Built on the right of private property and freedom of enterprise. The phenomenon originated in Western Europe in the 17th-18th centuries and today is widespread throughout the world.

Origin of the term

The question “what is capitalism” has been studied by many economists and scientists. Particular credit for illuminating and popularizing this term belongs to Karl Marx. This publicist wrote the book “Capital” in 1867, which became fundamental for Marxism and many left-wing ideologies. The German economist in his work criticized the system that had developed in Europe, in which entrepreneurs and the state mercilessly exploited the working class.

The word “capital” arose somewhat earlier than Marx. It was originally a jargon common on European exchanges. Even before Marx, the famous English writer William Thackeray used this word in his books.

Main features of capitalism

To understand what capitalism is, one must understand its main features that distinguish it from other economic systems. The basis of this phenomenon is free commerce, as well as the production of services and goods by private individuals. It is also important that all this is sold only on free markets, where the price is determined depending on supply and demand. Capitalism does not involve coercion by the state. In this it is the opposite of the planned economy, which existed in many communist countries, including the USSR.

The driving force of capitalism is capital. These are means of production that are privately owned and needed to make a profit. In everyday life, capital most often means money. But it can also be other property, such as precious metals.

Profit, like capital, is the property of the owner. He can use it to expand own production or satisfy your needs.

Life of a capitalist society

Capitalist society earns its living through free hiring. In other words, labor power is sold for wages. So what is capitalism? This is fundamental freedom of the market.

In order for capitalist relations to arise in a society, it needs to go through several stages of development. This is an increase in the number of goods and money on the market. In addition, capitalism also needs a living workforce - specialists with the necessary skills and education.

Such a system cannot be controlled from a specific center. Each member of a capitalist society is free and can dispose of his own resources and skills at his own discretion. This, in turn, means that any decision implies individual responsibility (for example, for losses due to incorrect investment of money). At the same time, market participants are protected from attacks on their own rights through laws. Rules and norms create the balance that is necessary for the stable existence of capitalist relations. An independent judiciary is also needed. He can become an arbitrator in the event of a dispute between two market participants.

Social classes

Although Karl Marx is best known as a researcher of capitalist society, even in his era he was far from the only one who studied this economic system. The German sociologist paid a lot of attention to the working class. However, even before Marx, Adam Smith explored the struggles of various groups in society.

The English economist identified three main classes within capitalist society: owners of capital, landowners and proletarians who cultivated this land. In addition, Smith identified three types of income: rent, wages, and profit. All these theses later helped other economists formulate what capitalism is.

Capitalism and planned economy

Karl Marx admitted in his own writings that it was not he who discovered the phenomenon of class struggle in capitalist society. However, he wrote that his main merit was the proof that all social groups exist only at a certain stage of historical development. Marx believed that the period of capitalism is a temporary phenomenon that should be replaced by the dictatorship of the proletariat.

His judgments became the basis for many left-wing ideologies. Including Marxism turned out to be a platform for the Bolshevik Party. The history of capitalism in Russia turned into the revolution of 1917. A new model of economic relations was adopted in the Soviet Union - a planned economy. The concept of “capitalism” became a dirty word, and the Western bourgeoisie began to be called nothing less than bourgeois.

In the USSR, the state took on the functions of the last authority in the economy, at the level of which it was decided how much and what to produce. Such a system turned out to be clumsy. While in the Union the emphasis in the economy was on the military-industrial complex, competition reigned in capitalist countries, which resulted in an increase in income and well-being. At the end of the 20th century, almost all communist countries abandoned planned economies. They also transitioned to capitalism, which is the engine of the world community today.

Capitalism- a socio-economic formation based on private ownership of the means of production and exploitation of wage labor by capital, replaces feudalism and precedes the first phase.

Etymology

Term capitalist in meaning capital owner appeared earlier than the term capitalism, back in the middle of the 17th century. Term capitalism first used in 1854 in the novel The Newcomes. Use the term in modern meaning first started and . In Karl Marx's work Capital the word is used only twice, instead Marx uses the terms " capitalist system", "capitalist mode of production", "capitalist", which appear in the text more than 2600 times.

The essence of capitalism

Main features of capitalism

• The dominance of commodity-money relations and private ownership of the means of production;
• The presence of a developed social division of labor, the growth of socialization of production, the transformation of labor into goods;
• Exploitation of wage workers by capitalists.

The main contradiction of capitalism

The goal of capitalist production is to appropriate the surplus value created by the labor of wage workers. As relations of capitalist exploitation become the dominant type of production relations and bourgeois political, legal, ideological and other social institutions replace pre-capitalist forms of the superstructure, capitalism turns into a socio-economic formation that includes the capitalist mode of production and the corresponding superstructure. In its development, capitalism goes through several stages, but its most characteristic features remain essentially unchanged. Capitalism is characterized by antagonistic contradictions. The main contradiction of capitalism between the social nature of production and the private capitalist form of appropriation of its results gives rise to anarchy of production, unemployment, economic crises, the irreconcilable struggle between the main classes of capitalist society - and the bourgeoisie - and determines the historical doom of the capitalist system.

The emergence of capitalism

The emergence of capitalism was prepared by the social division of labor and the development of a commodity economy within the depths of feudalism. In the process of the emergence of capitalism, at one pole of society, a class of capitalists was formed, concentrating in their hands money capital and the means of production, and on the other - a mass of people deprived of the means of production and therefore forced to sell their labor power to the capitalists.

Stages of development of pre-monopoly capitalism

Initial accumulation of capital

Developed capitalism was preceded by a period of so-called primitive accumulation of capital, the essence of which was the robbery of peasants, small artisans and the seizure of colonies. The transformation of labor power into goods and the means of production into capital meant the transition from simple commodity production to capitalist production. The initial accumulation of capital was simultaneously a process of rapid expansion of the domestic market. Peasants and artisans, who previously subsisted on their own farms, turned into hired workers and were forced to live by selling their labor power and buying necessary consumer goods. The means of production, which were concentrated in the hands of a minority, were converted into capital. An internal market for the means of production necessary for the resumption and expansion of production was created. Great geographical discoveries and the seizure of colonies provided the nascent European bourgeoisie with new sources of capital accumulation and led to the growth of international economic ties. The development of commodity production and exchange, accompanied by the differentiation of commodity producers, served as the basis for the further development of capitalism. Fragmented commodity production could no longer satisfy the growing demand for goods.

Simple capitalist cooperation

The starting point of capitalist production was simple capitalist cooperation, that is, the joint labor of many people performing separate tasks. manufacturing operations under the control of the capitalist. The source of cheap labor for the first capitalist entrepreneurs was the massive ruin of artisans and peasants as a result of property differentiation, as well as the “fencing” of land, the adoption of poor laws, ruinous taxes and other measures of non-economic coercion. The gradual strengthening of the economic and political positions of the bourgeoisie prepared the conditions for bourgeois revolutions in a number of Western European countries: in the Netherlands at the end of the 16th century, in Great Britain in the mid-17th century, in France at the end of the 18th century, in a number of other European countries in the mid-19th century. Bourgeois revolutions, having carried out a revolution in the political superstructure, accelerated the process of replacing feudal production relations with capitalist ones, cleared the way for the capitalist system that had matured in the depths of feudalism, for the replacement of feudal property with capitalist property.

Manufacturing production. Capitalist factory

A major step in the development of the productive forces of bourgeois society was made with the advent of manufacture in the mid-16th century. However, by the middle of the 18th century, the further development of capitalism in the advanced bourgeois countries of Western Europe encountered the narrowness of its technical base. The need has become ripe for a transition to large-scale factory production using machines. The transition from manufacture to the factory system was carried out during the industrial revolution, which began in Great Britain in the 2nd half of the 18th century and was completed by the mid-19th century. The invention of the steam engine led to the appearance of a number of machines. The growing need for machines and mechanisms led to a change in the technical basis of mechanical engineering and the transition to the production of machines by machines. The emergence of the factory system meant the establishment of capitalism as the dominant mode of production and the creation of a corresponding material and technical base. The transition to the machine stage of production contributed to the development of productive forces, the emergence of new industries and the involvement of new resources in economic circulation, the rapid growth of urban populations and the intensification of foreign economic relations. It was accompanied by a further intensification of the exploitation of wage workers: the wider use of female and child labor, the lengthening of the working day, the intensification of labor, the transformation of the worker into an appendage of the machine, the growth of unemployment, the deepening of the opposition between mental and physical labor and the opposition between city and countryside. The basic patterns of development of capitalism are characteristic of all countries. However, in various countries there were specific features of its genesis, which were determined by the specific historical conditions of each of these countries.

Development of capitalism in individual countries

Great Britain

The classic path of development of capitalism - initial accumulation of capital, simple cooperation, manufacturing production, capitalist factory - is characteristic of a small number of Western European countries, mainly Great Britain and the Netherlands. In Great Britain, earlier than in other countries, the industrial revolution was completed, the factory system of industry arose, and the advantages and contradictions of the new, capitalist mode of production were fully revealed. Extremely fast compared to others European countries the growth of industrial production was accompanied by the proletarianization of a significant part of the population, the deepening of social conflicts, and cyclical crises of overproduction regularly recurring since 1825. Great Britain has become a classic country of bourgeois parliamentarism and at the same time the birthplace of the modern labor movement. By the mid-19th century, it had achieved world industrial, commercial and financial hegemony and was the country where capitalism reached its greatest development. It is no coincidence that the theoretical analysis of the capitalist mode of production given was based mainly on English material. noted that the most important distinctive features of English capitalism of the 2nd half of the 19th century. there were “huge colonial possessions and a monopoly position on the world market”

France

The formation of capitalist relations in France - the largest Western European power of the era of absolutism - occurred more slowly than in Great Britain and the Netherlands. This was explained mainly by the stability of the absolutist state and the relative strength of the social positions of the nobility and small peasant farming. The dispossession of peasants did not occur through “fencing”, but through tax system. A large role in the formation of the bourgeois class was played by the tax farming system and government debts, and later the government's protectionist policies towards the nascent manufacturing industry. The bourgeois revolution occurred in France almost a century and a half later than in Great Britain, and the process of primitive accumulation lasted for three centuries. The Great French Revolution, having radically eliminated the feudal absolutist system that hindered the growth of capitalism, simultaneously led to the emergence of a stable system of small peasant land ownership, which left its mark on the entire further development of capitalist production relations in the country. The widespread introduction of machines began in France only in the 30s of the 19th century. In the 50-60s it turned into an industrialized state. The main feature of French capitalism in those years was its usurious nature. The growth of loan capital, based on the exploitation of the colonies and profitable credit operations abroad, turned France into a rentier country.

USA

The USA entered the path of capitalist development later than Great Britain, but by the end of the 19th century it became one of the advanced capitalist countries. Feudalism did not exist in the USA as a comprehensive economic system. A major role in the development of American capitalism was played by the displacement of the indigenous population onto reservations and the development of vacated lands by farmers in the west of the country. This process determined the so-called American path of development of capitalism in agriculture, the basis of which was the growth of capitalist farming. The rapid development of American capitalism after Civil War 1861-65 led to the fact that by 1894 the United States took first place in the world in terms of industrial output.

Germany

In Germany, the abolition of the system of serfdom was carried out “from above.” The redemption of feudal dues, on the one hand, led to the mass proletarianization of the population, and on the other hand, it gave the landowners the capital necessary to transform the cadet estates into large capitalist farms using hired labor. Thus, the preconditions were created for the so-called Prussian path of development of capitalism in agriculture. The unification of the German states into a single customs union and the bourgeois Revolution of 1848-49 accelerated the development of industrial capital. An exceptional role in the industrial boom in the mid-19th century in Germany was played by railways, which contributed to the economic and political unification of the country and the rapid growth of heavy industry. The political unification of Germany and the military indemnity it received after the Franco-Prussian War of 1870-71 became a powerful stimulus for the further development of capitalism. In the 70s of the 19th century, there was a process of rapid creation of new industries and re-equipment of old ones based on the latest achievements of science and technology. Taking advantage of the technical achievements of Great Britain and other countries, Germany was able to catch up with France in terms of economic development by 1870, and by the end of the 19th century to approach Great Britain.

In the East

In the East, capitalism received its greatest development in Japan, where, as in Western European countries, it arose on the basis of the decomposition of feudalism. Within three decades after the bourgeois revolution of 1867-68, Japan became one of the industrial capitalist powers.

Pre-monopoly capitalism

A comprehensive analysis of capitalism and its specific forms economic structure at the pre-monopoly stage, it was given by Karl Marx and Friedrich Engels in a number of works and, above all, in Capital, where the economic law of movement of capitalism was revealed. The doctrine of surplus value is the cornerstone of Marxist political economy- revealed the secret of capitalist exploitation. The appropriation of surplus value by capitalists occurs due to the fact that the means of production and means of subsistence are owned by a small class of capitalists. The worker, in order to live, is forced to sell his labor power. With his labor he creates more value than his labor costs. Surplus value is appropriated by capitalists and serves as a source of their enrichment and further growth of capital. The reproduction of capital is at the same time the reproduction of capitalist production relations based on the exploitation of other people's labor.

The pursuit of profit, which is a modified form of surplus value, determines the entire movement of the capitalist mode of production, including the expansion of production, the development of technology, and the increased exploitation of workers. At the stage of pre-monopoly capitalism, competition between non-cooperative fragmented commodity producers is replaced by capitalist competition, which leads to the formation of an average rate of profit, that is, equal profit on equal capital. The cost of goods produced takes the modified form of production price, which includes production costs and average profit. The process of profit averaging is carried out in the course of intra-industry and inter-industry competition, through the mechanism of market prices and the transfer of capital from one industry to another, through the intensification of competition between capitalists.

By improving technology at individual enterprises, using the achievements of science, developing means of transport and communication, improving the organization of production and commodity exchange, capitalists spontaneously develop social productive forces. Concentration and centralization of capital contribute to the emergence large enterprises, where thousands of workers are concentrated, lead to the growing socialization of production. However, enormous, ever-increasing wealth is appropriated by individual capitalists, which leads to a deepening of the main contradiction of capitalism. The deeper the process of capitalist socialization, the wider the gap between direct producers and the means of production owned by private capitalists. The contradiction between the social nature of production and capitalist appropriation takes the form of antagonism between the proletariat and the bourgeoisie. It also manifests itself in the contradiction between production and consumption. The contradictions of the capitalist mode of production are most acutely manifested in periodically recurring economic crises. There are two interpretations of their cause. One is related to the general one. There is also the opposite opinion, that the capitalist's profits are so high that the workers do not have enough purchasing power to buy all the goods. Being an objective form of violent overcoming of the contradictions of capitalism, economic crises do not resolve them, but lead to further deepening and aggravation, which indicates the inevitability of the death of capitalism. Thus, capitalism itself creates the objective prerequisites for a new system based on public ownership of the means of production.

Antagonistic contradictions and the historical doom of capitalism are reflected in the sphere of the superstructure of bourgeois society. The bourgeois state, no matter in what form it exists, always remains an instrument of class rule of the bourgeoisie, an organ of suppression of the working masses. Bourgeois democracy is limited and formal. In addition to the two main classes of bourgeois society (the bourgeoisie and), under capitalism, classes inherited from feudalism are preserved: the peasantry and landowners. With the development of industry, science and technology, and culture, the social stratum of the intelligentsia - people of mental labor - is growing in a capitalist society. Main trend development of the class structure of capitalist society - polarization of society into two main classes as a result of the erosion of the peasantry and intermediate layers. The main class contradiction of capitalism is the contradiction between the workers and the bourgeoisie, expressed in an acute class struggle between them. In the course of this struggle, a revolutionary ideology is developed, political parties of the working class are created, and the subjective prerequisites for a socialist revolution are prepared.

Monopoly capitalism. Imperialism

At the end of the 19th and beginning of the 20th century, capitalism entered the highest and final stage of its development - imperialism, monopoly capitalism. Free competition at a certain stage led to such a high level of concentration and centralization of capital, which naturally led to the emergence of monopolies. They define the essence of imperialism. Denying free competition in certain industries, monopolies do not eliminate competition as such, “... but exist above it and next to it, thereby giving rise to a number of particularly acute and steep contradictions, frictions, and conflicts.” The scientific theory of monopoly capitalism was developed by V.I. Lenin in his work “Imperialism as the highest stage of capitalism.” He defined imperialism as “... capitalism at that stage of development when the dominance of monopolies and finance capital has emerged, the export of capital has acquired outstanding importance, the division of the world by international trusts has begun and the division of the entire territory of the earth by the largest capitalist countries has ended.” At the monopoly stage of capitalism, the exploitation of labor by financial capital leads to the redistribution in favor of monopolies of part of the total surplus value attributable to the non-monopoly bourgeoisie and the necessary product of wage workers through the mechanism of monopoly prices. Certain shifts are taking place in the class structure of society. The dominance of financial capital is personified in the financial oligarchy - the large monopoly bourgeoisie, which brings under its control the overwhelming majority of the national wealth of capitalist countries. Under the conditions of state-monopoly capitalism, the top of the big bourgeoisie is significantly strengthening, which has a decisive influence on economic policy bourgeois state. The economic and political weight of the non-monopoly middle and petty bourgeoisie is decreasing. Significant changes are taking place in the composition and size of the working class. In all developed capitalist countries, with the total amateur population growing by 91% over the 70 years of the 20th century, the number of employed people increased almost 3 times, and their share in total number employment increased over the same period from 53.3 to 79.5%. In the conditions of modern technical progress, with the expansion of the service sector and the growth of the bureaucratic state apparatus, the number and proportion of employees, whose social status is similar to the industrial proletariat, have increased. Under the leadership of the working class, the most revolutionary forces of capitalist society, all working classes and social strata, are fighting against the oppression of monopolies.

State-monopoly capitalism

In the process of its development, monopoly capitalism develops into state-monopoly capitalism, characterized by the merging of the financial oligarchy with the bureaucratic elite, the strengthening of the role of the state in all areas of public life, the growth of the public sector in the economy and the intensification of policies aimed at mitigating the socio-economic contradictions of capitalism. Imperialism, especially at the state-monopoly stage, means a deep crisis of bourgeois democracy, the strengthening of reactionary tendencies and the role of violence in domestic and foreign policy. It is inseparable from the growth of militarism and military spending, the arms race and the tendency to unleash wars of aggression.

Imperialism extremely aggravates the basic contradiction of capitalism and all the contradictions of the bourgeois system based on it, which can only be resolved by a socialist revolution. V.I. Lenin gave a deep analysis of the law of uneven economic and political development of capitalism in the era of imperialism and came to the conclusion that the victory of the socialist revolution was possible initially in one single capitalist country.

Historical significance of capitalism

As a natural stage in the historical development of society, capitalism played a progressive role in its time. He destroyed patriarchal and feudal relations between people, based on personal dependence, and replaced them with monetary relations. Capitalism created large cities, sharply increased urban population at the expense of agriculture, it destroyed feudal fragmentation, which led to the formation of bourgeois nations and centralized states, and raised the productivity of social labor to a higher level. Karl Marx and Friedrich Engels wrote:

“The bourgeoisie, in less than a hundred years of its class rule, has created more numerous and more ambitious productive forces than all previous generations combined. The conquest of the forces of nature, machine production, the use of chemistry in industry and agriculture, shipping, railways, the electric telegraph, the development of entire parts of the world for agriculture, the adaptation of rivers for navigation, entire masses of population, as if summoned from underground - which of the previous centuries could suspect that such productive forces lie dormant in the depths of social labor!

Since then, the development of productive forces, despite unevenness and periodic crises, has continued at an even more accelerated pace. Capitalism of the 20th century was able to put into its service many of the achievements of the modern scientific and technological revolution: atomic energy, electronics, automation, jet technology, chemical synthesis, and so on. But social progress under capitalism is carried out at the cost of a sharp aggravation of social contradictions, waste of productive forces, and suffering of the masses of the entire globe. The era of primitive accumulation and capitalist “development” of the outskirts of the world was accompanied by the destruction of entire tribes and nationalities. Colonialism, which served as a source of enrichment for the imperialist bourgeoisie and the so-called labor aristocracy in the metropolises, led to a long stagnation of the productive forces in the countries of Asia, Africa and Latin America, and contributed to the preservation of pre-capitalist production relations in them. Capitalism has used the progress of science and technology to create destructive means of mass destruction. He is responsible for enormous human and material losses in the increasingly frequent and destructive wars. In the two world wars alone, waged by imperialism, over 60 million people died and 110 million were wounded or disabled. At the stage of imperialism, economic crises became even more acute.

Capitalism cannot cope with the productive forces it has created, which have outgrown capitalist relations of production, which have become fetters for their further unhindered growth. In the depths of bourgeois society, in the process of development of capitalist production, objective material prerequisites for the transition to socialism have been created. Under capitalism, the working class grows, unites and organizes, which, in alliance with the peasantry, at the head of all working people, constitutes a powerful social force capable of overthrowing the outdated capitalist system and replacing it with socialism.

Bourgeois ideologists, with the help of apologetic theories, try to argue that modern capitalism is a system devoid of class antagonisms, that in highly developed capitalist countries there are supposedly no factors that give rise to social revolution. However, reality shatters such theories, increasingly revealing the irreconcilable contradictions of capitalism.