THE WINNING OF CAPITALISM

MEMBERS : 1. Reza rezeki 2. Juniar laraswanda .u. 3. Nurjannah

( 20100510187 ) ( 2010510188 ) ( 2010510192 )

THE MEANING OF CAPITALISM

Capitalism or capital is an understanding which believes that capital owners can make an effort to achieve maximum profit. For sake of principle, the government cant intervene in order to gain multimarket together but government intervention made massive profits personal interest.

 However , capitalism does not really have a universal definition that can be widely accepted. Some expert define capitalism as a system which come into force in Europe in the 16th century until 19th century, namely the development of commercial banking in Europe where a group of individuals and groups act as a specific entity that could have or trade property Personally, especially capital goods, such as land and human beings in order to process the change of capital goods into finished goods.

PRINCIPALS
Private ownership Capital accumulations, no limitations. Land, money, gold, goods (producer good) Free market / laizes faire Free competitions No intervention (from government) No monopoly Demand and supply law No privileges Profit Free of choosing job, doing trade, and holding contract.

PHILOSOPHY OF CAPITALISM PERSPECTIVE

Capitalism is one of the patterns of human perspective in all economic activities. Its growth does not always move yoward positive as many people imagine but up and down. Critique of capitalist existence as a form of oppression of the lower classes of society is one of the factors that cause this flow has been criticized. However, not only cristicism that threaten capitalism but also other ideologies that want to eliminate it like communism.

 The Classic Capitalism The government dominates the field of trade for centuries but was instead led to economic inequality. These thinkers began to believe that the bourgeois, who in the previous era began play an important role in the economy ot the state-dominated trade better known as mercantilism, should begin to conduct trade and production petterns to support community life. Some experts include

ADAM SMITH
Born in Kirkcaldy, Scotland. The date is unknown, but he was baptised in June, 1723). Entered Glasgow University since 15 years old. Studied moral philosophy Books: An inquiry into the Nature and Causes of the Wealth of Nations. (1776).

 Adam Smith is the classical capitalist economic figures who attacked mercantilism which he considers less supportive of economic society. He attacked the psiokrat which considers the soil is something that is most important in the production pattern. The movement of production to be moved according to the concept of MCM (comodity-Money-Capital, capital-commodity-money), which became a matter that will not stop because the money will shift into more capital and will spin again if invested.

CAPITALISM
Capital : the one of the factors of productions along with land and labor which is expressed in term of money and producer goods Definition : an economic system in which the means of production are mostly privately owned and operated for profit, and in which distribution, production and pricing of goods and services are determined in a largely free market. It is usually considered to involve the right of individuals and groups of individuals acting as "legal persons" or corporations to trade capital goods, land, and money

 Adam Smiths view that there is hidden force which will regulate market (invisible hand), then the market should have a laissez-faire or freedom from government intervention. The government only served as supervisor of all work perormed by people. Generally acknowledge as the founder of classical political economy. He gave special emphasis on the division of labor as a cause of increased productivity and prosperity. Smith treatment of the wages, rental income and more questioned. Value, he is determined to maintain wages, profits and rents.

AMERICA IS CAPITALIST ECONOMY

In every economic system, entrepreneurs and managers bring together natural resources, labor , and technology to produce and distribute goods and service. But the way these different elements are organized and used also reflect a nations political ideas and its culture. The United States is often described as a capitalist economy, a term coined by 19th century German economist and social teorist Karl Marx to describe a system in which a small group of people who control large amounts of money, or capital, make the most important economic decision.

THE HISTORY OF CAPITALISM IN INDONESIA

As we know, Indonesia use 100% capitalism system. In other hand western country use mixed economy which is a blend of socialism and capitalism. Based on Indonesia socialism book written by sutan sjahrir 1956: Even where socialist are not in power, there are indication of a transitional situation developing. Liberal capitalism is being replaced by a mixed economy with state interference and there is also collective property.

IMPLEMENTATION KAPITALISM SYSTEM IN INDONESIA

 In fact traces of capitalism in Indonesia can be traced when Indonesia began to enter the era of the new order government. New order government began in march 1966. orientation of the new order government was contrary to the previous era. New order more pro-western and far from the policy of communist ideology

Bibliography
Books
Macridis, C. Roy, Contemporary Political Ideology little, brown and company Boston, Toronto Capitalism : law of accumulation, 101: law of pauperization, 101-103, Marxs critique Anthony Brewer, DAS KAPITAL KARL MARX (1984). Pengantar p.16

Site
www.wikipedia.com/captalism www.publicjurnal.com.sg www.thesecretofpolitics.com.nz