Capitalism

Definition of: Capitalism
Capitalism is an economic system in which the means of trade, industry and the means of the production are in the hands of private owners in their aspirations to create profit. Profit on the other hand being a very important element to capitalism is the accummulation of wealth by the formulae of: cost of the production of the product -> sell the product for a higher price than it cost you to make it = profit. Capitalism consists of wage labour also in which the working class have only their labour to sell in goal to obtain money for themselves. In modern day capitalism wages have began to decrease as corporations begin to become more prominant and now have created wage poverty and bankrupcy of other competitive markets.

Capital or money (monetary system) is used for the exchange of goods and services, it's a monetary system which merits the value of labour therefore the entitlement of buying goods with money. In capitalism there is a hierarchy structure which consists of; Working-class (proletariat), the middle-class (petty-bourgeois) and the business-man class or capitalist class (bourgeoisie). The lowest class is the one that does all the industrial and commercial labour, the middle class carries out running small businesses, services and companies, the capitalist class consists of large corporations and fossil fuels services that own vast amounts of land and wealth.