Question

In what ways did capitalism bring rapid and dramatic change. Provide three examples of its effect on work and production.

Answer 1

Capitalism is the type of economicsystem in which the trade and industry are owned and controlled by private owners making economic profit. It is not controlled and owned by State.

The capitalism bring rapid and dramatic change in the following ways –

• The scale of production increased dramatically.
• The workers started working in a common factory area, either they used to work either in their home or in a small area.
• Workers were treated as just another factor of production.
• The soul aim is to maximize the profits either by cutting the labour cost or raw material cost.
• The involvement of private players brings Competition in market, hence the quality of product increased very much as comparatively lower price.
• Changing the pattern of Agriculture from subsistance farming to Commercial farming.
• Rapid Increase in Environmental pollution in the form of global warming, Increase GHG concentration, seal level rise etc.

The effect of capitalism in work and production can be understood by following three examples –

• Cloth production:
  • Before capitalism: The cloth making was done by individuals who were also the owner, by hands in their home, on very small scale.
  • capitalism: The cloth manufacturing done by large group of workers, by machines, in th factories, on very large scale.
• Iron & Steel:
  • Before capitalism: The Iron & steel making was done by individuals or small group of peoples who were also the owner, by hands & charcoal, on very small scale.
  • capitalism: The Iron & steel done by large group of workers, by machines like blast furnace, Bessemer converter & electric arcs etc, in th factories, on very large scale.
• Extraction of resources:
  • Before capitalism: The extraction of minerals was done by small group of peoples, on small scale, to fulfill their own needs. Not for economic benefits.
  • capitalism: The extraction of mineral done by large number of labour owned by a wealthy capitalist, on very large scale, for economic benefits. Not to fulfill their own needs.