Pyramid of capitalist system, 1911.
Cartoon published in the journal of the Association of Industrial Workers of the World ( Industrial Workers of the World ), a revolutionary syndicalist organization founded in 1905 in Chicago.
A large purse, symbol of capitalism, is placed at the top to the floor below are a king, a prime minister and a president - "We will direct" - then the clergy and other religious - "We ride" - and soldiers - "We'll draw on it." On the first floor of the bourgeois banquettent: "We eat for you." Finally, at the bottom, supporting the whole working class: "We work for you / We feed you all." Some workers are overwhelmed or exhausted, but other rebel and one of them waved the red flag of the workers' revolution.
What is capitalism?
Capitalism is the economic system in which one who has the capital dominates the system because it can acquire the means of production (machines, factories) and therefore increase its capital. It is economic liberalism, political liberalism inspired by the Enlightenment and 1789 (the primacy of individual liberty and natural rights).
Born in Britain in the second half of the eighteenth century, liberalism is required in most industrialized countries in the nineteenth and triumph in the U.S. who becomes his stamping ground.
It inspires the most political and economic leaders of the Industrial Revolution.
The principle is to allow everyone the freedom to do what he wants in economic matters. The founder of this doctrine is Adam Smith (1776) who believes that each individual should seek to maximize its own benefit as well, the entire society is enriched and thus ultimately by automatic mechanism, the set of individuals is enriched (system the "invisible hand of the market"). He says the market has the power to correct social inequalities.
Economic liberalism poses to the basic engine of the economy is the private individual initiative (based on the idea that what motivates an individual to work and save, c ' is his own interest). In this context, the general interest is the sum of individual interests.
Therefore, the principles of liberalism are the free enterprise that allows private initiative, free competition (which favors the cheapest products of equal quality and will be excluded that low) and free trade (which promotes trade). The state must respect private property and not to intervene in the economy, or make improper regulations, nor require excessive taxation, the role of the state is to maintain order inside, organize Police and justice, finance major infrastructure that private interests could provide. He must enforce the law. It should therefore in no way interfere in the economic and social life since the liberal conception, the economy operates according to natural laws that regulate by themselves.
What about the design profession in the social field?
As a strong proponent of liberalism, Thomas Malthus, English economist, 18 th , rejects all government intervention in the social field. How does it justify?
In his misery is the result of imbalance between production and settled population if the population becomes too large, men can not live in misery and that is taking hold.
Malthus rejects any assistance to the poor because it said it would increase them. It is therefore necessary to attack the problem by limiting the number of births and this especially among the lower classes who have birth rates higher.
This position will be severely criticized by the Socialists.
What risks to workers of such a system?
If the state does not intervene either in the economic field or in the social field, this leaves the workers under the complete domination of the bosses. Now the founders of liberalism, which have all the answers, this should not happen. Why?
Because liberalism is a guarantor of social progress in ensuring good living conditions. How? If the company makes profits, it invests, it creates jobs and provides enrichment for all.
Liberalism is needed quickly in Britain and throughout Europe before finding his place of choice in the USA. He was soon to be criticized by supporters of leftist ideas.
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