Cap6

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Screenplay: <<<**INTRO**>>> Capitalism is an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations. Capitalism evolved through a number of stages, reaching its peak in the 19th century. From Europe, and especially from England, capitalism spread throughout the world, unchallenged as the dominant economic and social system until World War I pushed in modern communism as a competing system.<<<**VIDEO**>>> "Milton Freidmen-Greed", http://www.youtube.com/watch?v=RWsx1X8PV_A <<>>**Read>The pattern of boom and bust in late 19th-century America is a example of what has since come to seem an aspect of capitalism.Caused when to much credit was given to banks. Some of the times a sudden collapse in market prices triggers the panic which ends the boom, such as a drop in the price of cotton, which had this effect in the USA in 1819 and 1837. READ>One of the prominant figures in 18th century capitalism was Adam Smith. Adam Smith published his Inquiry into the Nature and Causes of the Wealth of Nations in 1776, adding a second revolutionary event to that fateful year. Not all Europe followed America's political lead, after Smith had displayed the first true vivid glimpse of modern society, all the Western world became the world of Adam Smith. READ>Adam Smith would never have thought of himself as a revolutionist; he was only explaining what to him was very clear sensible, and conservative. But he gave the world and economic identity for which it had been searching. After The Wealth of Nations,men began to see the world about themselves with new eyes; they saw how the tasks they did fitted into the whole of society, and they saw that society as a whole was proceeding at a majestic pace toward a distant but clearly visible goal. Adam Smith wanted "the invisible hand," as he called it, whereby "the private interests and passions of men" are led in the direction "which is most agreeable to the interest of the whole society." <**Video **about veiws of Adam Smith vs. Market Anarchist and Free Market Capitalist and Libertarian>"Anarchy and Economy p2: Adam Smith"http://www.youtube.com/watch?v=5a7WDnsrBls <<**>**> Smith's theory does lead to a doctrine of laissez-faire, to Adam Smith the least government is the best: governments are wasteful with money, irresponsible, and unproductive. But that is not to mean Adam Smith was not necessarily opposed to government action that has as its end the promotion of the general welfare. Smith specifically stresses three things that government should do in a society of natural liberty. > > Put into today's language, Smith recognizes the usefulness of public investment for projects that cannot be undertaken by the private sector, such as roads and education Capitalism must be recognized as a form of order for a nation. Given the previous examples we see that anarchy can claim an economically unstable nation easily, so, in order to prevent this said nation must find a common order to do things. Seeing as private corporations are funded by the people we now know that the people can easily control these corporations buy buying a majority of shares. Investing in these companies, however, is known to leas to disaster if the nation does not manage it's funds properly.. For presenting this information, each one of us in the group is to tape themselves talking about one forth of the project on our own. We should each have plenty of discussion on Adam Smith and his impact of Capitalism.
 * First, it should protect that society against "the violence and invasion of other societies.
 * Second, it should provide an "exact administration of justice" for all citizens.
 * third, government has the duty of "erecting and maintaining those public institutions and those public works which may be in the highest degree advantageous to a great society," but which "are of such a nature that the profit could never repay the expense to any individual or small number of individuals."

Research: Basic Definition cap⋅i⋅tal⋅ism  / ˈkæpɪtlˌɪzəm /     –noun an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth. <>> http://www.fff.org/freedom/0193b.asp http://www.historyworld.net/wrldhis/PlainTextHistories.asp?groupid=462&HistoryID=aa49#pagetop --Capitalism, economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets. Although rooted in antiquity, capitalism is primarily European in its origins; it evolved through a number of stages, reaching its zenith in the 19th century. From Europe, and especially from England, capitalism spread throughout the world, largely unchallenged as the dominant economic and social system until World War I (1914-1918) ushered in modern communism (or Marxism) as a vigorous and hostile competing system. --"Capitalism," Microsoft® Encarta® Online Encyclopedia 2008 [|http://encarta.msn.com] © 1997-2008 Microsoft Corporation. All Rights Reserved.

the lies told about capitalism in England and America in the 1800's made capitalism sound like the villain it never was. Instead, capitalism was actually a good member of the village - a good villain - one that provided better jobs and food to poor folk that otherwise would have died, as many did in fact die of starvation before capitalism showed up. But since some problems continued in England simultaneously with capitalism, albeit in //different// locales from where capitalism existed, nevertheless capitalism got the blame from the historians.

These same skewed historians want us to think that this bad rap got started due to the evils of capitalism in 19th Century England when rapid industrialization pushed wages down, lowered the standard of living for families, produced dark windowless housing units in ramshackle apartment buildings, and pressed children into servitude working long hours in factories for pennies.

> More deformed children worked in factories than on the farms because the work was lighter and out of the weather. http://www.doyletics.com/arj/cathrvw.htm
 * When wages went down, it was during a period of deflation - more people were working and their money could buy more sustenance than before.
 * Ramshackled, jury-built housing was built by homeless individuals, not the factories. Factories built decent, sturdy houses for their workers.
 * The standard of living of families dropped when state laws prohibited children from working in the factories. They went from many wage earners to one.
 * Windowless housing units were due to the state tax on windows, causing many apartment buildings to actually board up such windows as were already present.
 * A large Irish immigration overloaded towns with workers eager to "work for pennies" to replace the children recently outlawed from the factories. As for the worth of a penny, one need only read this sign from a pub of the time, “You can get drunk for a penny, Dead drunk for twopence.” [Note: obviously there were no [|minimum wages] back then.]

The tension between the employer class and the class of employees led to socialism, an idea that arose in the first half of the 1800's. Socialists knew that the old aristocracies, from feudal times, had ceased to exist as a class. The revolutions and gradual changes of the two centuries before 1800 had eliminated the special role of the old aristocracy and transformed them (at best) into capitalist land-renters. The socialists looked forward to a future in which the class of capitalist employers would also be eliminated as a class, with the former employer class or their descendants having to work for a living as the vast majority already do. http://william-king.www.drexel.edu/top/prin/txt/comsysf/cs4.html

--The pattern of boom and bust in late 19th-century America is a dramatic example of what has since come to seem an endemic aspect of capitalism. An almost invariable ingredient in each cycle is too much credit extended by banks. Sometimes a sudden collapse in market prices triggers the panic which ends the boom (a drop in the price of cotton has this effect in the USA in 1819 and 1837). --Loans are needed too for the livestock and seeds and implements and rolls of barbed wire which a pioneer farmer needs before he can get to work (the family house is a lesser priority - the 'sod cabin', cut from turf, becomes a feature of the plains). The new towns borrow money too, for streets and buildings appropriate to their growing wealth. In April 1893, shortly after President Cleveland enters office for the second time, the reserve falls below this magic figure. This turns out to be the symbolic moment which provokes the crash. Source--History of Capitalism. Retrieved February 11, 2009, from Historyworld Web site: http://www.historyworld.net/wrldhis/PlainTextHistories.asp?groupid=462&HistoryID=aa49

--The growth of Britain's industry meant the growth of her system of finance and credit. At the beginning of the century, banking was an affair for clubs of very wealthy families. But gradually, and at an accelerating pace after the collapse of the threat from Napoleon, a new sort of banking emerged, owned by anonymous stockholders, run by professional managers, and the recipient of the deposits of a growing body of small savers. The new breed of banks was new in prominence, not newly invented. A Quaker family, the Barclays, had been banking in this manner since 1690. But this model of banking became ever more prominent through the nineteenth century. The UK's growing importance as the center of capitalism in this period benefitted from the great degree to which the business world of Britain was open to talented foreigners, like Johann Baring, who had come from Bremen in 1717 and turned himself into a successful cloth merchant in Exeter. His sons, John and Francis Baring, set up a trading company in London, and Francis became one of the most influential bankers of his time. By his death in 1810 he was allegedly worth 7 million pounds. Indeed, the Barings bank that lived on after Sir Francis' death was important enough to become the target of a barb from George Gordon Byron. In 1823, that great poet wrote: "Who makes politics run glibber all?/ The shade of Bonaparte's noble daring?/ Jew Rothschild and his fellow-Christian, Baring." The end of expensive hostilities and the rebound in trade after Napoleon's fall led to an expansion in the bullion reserves held by the Bank of England, from a low of under 4 million pounds in 1821 to 14 million pounds by late 1824. This was also the period during which the Erie Canal was under construction in the United States, and many investors in Europe saw opportunities in America, just as many investors in the developed world look to the emerging markets of today. --(19 January 2009). Capitalism in the Nineteenth Century. Retrieved February 11, 2009, from Wikipedia Web site: http://en.wikipedia.org/wiki/Capitalism_in_the_nineteenth_century <<>> Adam Smith published his Inquiry into the Nature and Causes of the Wealth of Nations in 1776, adding a second revolutionary event to that fateful year. A political democracy was born on one side of the ocean; an economic blueprint was unfolded on the other. But while not all Europe followed America's political lead, after Smith had displayed the first true tableau of modern society, all the Western world became the world of Adam Smith: his vision became the prescription for the spectacles of generations. Adam Smith would never have thought of himself as a revolutionist; he was only explaining what to him was very clear sensible, and conservative. But he gave the world the image of itself for which it had been searching. After The Wealth of Nations,men began to see the world about themselves with new eyes; they saw how the tasks they did fitted into the whole of society, and they saw that society as a whole was proceeding at a majestic pace toward a distant but clearly visible goal. Smith's vision is like a blueprint for a whole new mode of social organization, a mode called Political Economy. What he wanted was "the invisible hand," as he called it, whereby "the private interests and passions of men" are led in the direction "which is most agreeable to the interest of the whole society."

To Smith and the great economists who followed him, society is not conceived as a static achievement of mankind which will go on reproducing itself, unchanged and unchanging, from one generation to the next. On the contrary, society is seen as an organism that has its own life history. Indeed, in its entirety The Wealth of Nations is a great treatise on history, explaining how "the system of perfect liberty" (also called "the system of natural liberty") -- the way Smith referred to commercial capitalism -- came into being, as well as how it worked. Adam Smith's laws of the market are basically simple. They tell us that the outcome of a certain kind of behavior in a certain social framework will bring about perfectly definite and foreseeable results. In Smith's heavy praise of a free and unfettered market the rising industrialists found the theoretical justification they needed to block the first government attempts to remedy the scandalous conditions of the times. For Smith's theory does unquestionably lead to a doctrine of laissez-faire. To Adam Smith the least government is certainly the best: governments are spendthrift, irresponsible, and unproductive. And yet Adam Smith is not necessarily opposed to government action that has as its end the promotion of the general welfare. Smith specifically stresses three things that government should do in a society of natural liberty. > > Put into today's language, Smith explicitly recognizes the usefulness of public investment for projects that cannot be undertaken by the private sector -- he mentions roads and education as two examples. Heilbroner, Robert L. (1999). Adam Smith and the Origin of Capitalism. //PBS.com//, Retrieved 2/13/09, from http://www.pbs.org/wgbh/commandingheights/shared/pdf/ess_adamsmithorigin.pdf
 * First, it should protect that society against "the violence and invasion of other societies.
 * Second, it should provide an "exact administration of justice" for all citizens.
 * third, government has the duty of "erecting and maintaining those public institutions and those public works which may be in the highest degree advantageous to a great society," but which "are of such a nature that the profit could never repay the expense to any individual or small number of individuals."