short note on commercial capitalism
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The international encyclopaedia of social sciences refers to capitalism as the economic and political system that in its industrial or full form first developed in England in the late 18th century.
Dictionary of social sciences explained capitalism as denoting an economic system in which the greater proportion of economic life, particularly ownership of and investment in production goods, is carried on under private(i.c, non-governmental) auspices through the process of economic competition with an avowed incentive of profit.
Marxist historians have identified a series of stages in the evolution of capitalism---for examples, merchant or commercial capitalism, agrarian capitalism, industrial capitalism and state capitalism, and much of the debate on origin and progress Has hinged on differing views of the significance, timing and characteristics of each stage. The first stage, i.e. mercantile or commercial capitalization provided the initial thrust and impetus for capitalization in the sense that merchants started becoming entrepreneurs to cater to market demands by employing wage labourers as well as by exploiting the existing craft guilds. Commercial capitalization metamorphosed into industrial capitalisms, which again, according to Marxist economist, gave way to socialism, because industrial capitalism was inseparably connected with problems of the working class, this invariably gave rise to different currents of socialist thoughts.
Dictionary of social sciences explained capitalism as denoting an economic system in which the greater proportion of economic life, particularly ownership of and investment in production goods, is carried on under private(i.c, non-governmental) auspices through the process of economic competition with an avowed incentive of profit.
Marxist historians have identified a series of stages in the evolution of capitalism---for examples, merchant or commercial capitalism, agrarian capitalism, industrial capitalism and state capitalism, and much of the debate on origin and progress Has hinged on differing views of the significance, timing and characteristics of each stage. The first stage, i.e. mercantile or commercial capitalization provided the initial thrust and impetus for capitalization in the sense that merchants started becoming entrepreneurs to cater to market demands by employing wage labourers as well as by exploiting the existing craft guilds. Commercial capitalization metamorphosed into industrial capitalisms, which again, according to Marxist economist, gave way to socialism, because industrial capitalism was inseparably connected with problems of the working class, this invariably gave rise to different currents of socialist thoughts.
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The key feature of commercial capitalism is the role of the modern corporation as the wellspring of the capitals. Under the conditions of commercial capitalism the corporation does not seek to maximize profit but rather create maximum value stored in all capitals. Their purpose is to exist and by existing obliquely grow the useful energy available to society. The genius of the modern corporation is not limited liability but the ability to accumulate, convert and exchange capitals independently and more efficiently than any individual.
Commercial capitalism conceives of the modern corporation as an autonomous energy conversion system subject to four principles:
corporations are virtual open systems opens systems are subject to energy laws energy equals value ( I use the terms interchangeably) value is stored in the capitals
Viewed in this way, corporations exist through a process of efficient capitalization ( not unlike metabolism) - converting and exchanging useful energy (value) stored in various capitals and accumulating the same for later use. Corporations exist because they are able to convert the capitals far more efficiently than individuals and, as Coase argued, with less transaction costs.
The key to commercial capitalism is that not all capitals are created equally. Each form of capital has unique properties and characteristics that make them more or less useful. Value is created when capitals are converted and exchanged efficiently. This process is called "capitalization" and will be explored in future posts.
I hope that it will help you
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#crazyforjustinbeiber
Commercial capitalism conceives of the modern corporation as an autonomous energy conversion system subject to four principles:
corporations are virtual open systems opens systems are subject to energy laws energy equals value ( I use the terms interchangeably) value is stored in the capitals
Viewed in this way, corporations exist through a process of efficient capitalization ( not unlike metabolism) - converting and exchanging useful energy (value) stored in various capitals and accumulating the same for later use. Corporations exist because they are able to convert the capitals far more efficiently than individuals and, as Coase argued, with less transaction costs.
The key to commercial capitalism is that not all capitals are created equally. Each form of capital has unique properties and characteristics that make them more or less useful. Value is created when capitals are converted and exchanged efficiently. This process is called "capitalization" and will be explored in future posts.
I hope that it will help you
#belieber
#crazyforjustinbeiber
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