Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. The defining characteristics of capitalism include private property, capital accumulation, competitive markets, price systems, recognition of property rights, self-interest, economic freedom, meritocracy, work ethic, consumer sovereignty, economic efficiency, profit motive, a financial infrastructure of money and investment that makes possible credit and debt, entrepreneurship, commodification, voluntary exchange, wage labor, production of commodities and services, and a strong emphasis on innovation and economic growth. In a market economy, decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets—whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.
In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any other external authority. Proponents of the free market as a normative ideal contrast it with a regulated market, in which a government intervenes in supply and demand by means of various methods such as taxes or regulations. In an idealized free market economy, prices for goods and services are set solely by the bids and offers of the participants.
State capitalism is an economic system in which the state undertakes business and commercial economic activity and where the means of production are nationalized as state-owned enterprises. The definition can also include the state dominance of corporatized government agencies or of public companies in which the state has controlling shares.
A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.
A mixed economy is an economic system that accepts both private businesses and nationalized government services, like public utilities, safety, military, welfare, and education. A mixed economy also promotes some form of regulation to protect the public, the environment, or the interests of the state.
Laissez-faire is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism. As a system of thought, laissez-faire rests on the following axioms: "the individual is the basic unit in society, i.e., the standard of measurement in social calculus; the individual has a natural right to freedom; and the physical order of nature is a harmonious and self-regulating system." The original phrase was laissez faire, laissez passer, with the second part meaning "let (things) pass". It is generally attributed to Vincent de Gournay.
Political sociology is an interdisciplinary field of study concerned with exploring how governance and society interact and influence one another at the micro to macro levels of analysis. Interested in the social causes and consequences of how power is distributed and changes throughout and amongst societies, political sociology's focus ranges across individual families to the state as sites of social and political conflict and power contestation.
The nature of capitalism is criticized by left-wing anarchists, who reject hierarchy and advocate stateless societies based on non-hierarchical voluntary associations. Anarchism is generally defined as the libertarian philosophy which holds the state to be undesirable, unnecessary and harmful as well as opposing authoritarianism, illegitimate authority and hierarchical organization in the conduct of human relations. Capitalism is generally considered by scholars to be an economic system that includes private ownership of the means of production, creation of goods or services for profit or income, the accumulation of capital, competitive markets, voluntary exchange and wage labor, which have generally been opposed by most anarchists historically. Since capitalism is variously defined by sources and there is no general consensus among scholars on the definition nor on how the term should be used as a historical category, the designation is applied to a variety of historical cases, varying in time, geography, politics and culture.
A theory of capitalism describes the essential features of capitalism and how it functions. The history of various such theories is the subject of this article.
Nicos Poulantzas was a Greek-French Marxist political sociologist and philosopher. In the 1970s, Poulantzas was known, along with Louis Althusser, as a leading structural Marxist; while at first a Leninist, he eventually became a proponent of the "democratic road to socialism." He is best known for his theoretical work on the state, but he also offered Marxist contributions to the analysis of fascism, social class in the contemporary world, and the collapse of dictatorships in Southern Europe in the 1970s, such as Francisco Franco's rule in Spain, António de Oliveira Salazar's in Portugal, and Georgios Papadopoulos' in Greece.
The theory of state monopoly capitalism was initially a Marxist thesis popularised after World War II. Lenin had claimed in 1916 that World War I had transformed laissez-faire capitalism into monopoly capitalism, but he did not publish any extensive theory about the topic. The term refers to an environment where the state intervenes in the economy to protect larger monopolistic or oligopolistic businesses from threats. As conceived by Lenin in his pamphlet of the same name, the theory aims to describe the final historical stage of capitalism, of which he believed the Imperialism of that time to be the highest expression.
Criticism of capitalism is a critique of political economy that involves the rejection of, or dissatisfaction with the economic system of capitalism and its outcomes. Criticisms typically range from expressing disagreement with particular aspects or outcomes of capitalism to rejecting the principles of the capitalist system in its entirety.
The following events related to sociology occurred in the 1970s.
Bob Jessop is a British academic who has published extensively on state theory and political economy. He is currently Distinguished Professor of Sociology at the University of Lancaster.
Marxist sociology refers to the application of Marxist epistemologies within the study of sociology. It can often be economic sociology, political sociology or cultural sociology. Marxism itself is recognised as both a political philosophy and a social theory, insofar as it attempts to remain scientific, systematic, and objective rather than purely normative and prescriptive. This approach would come to facilitate the developments of critical theory and cultural studies as loosely distinct disciplines. Marx himself has been considered a founding father of sociology.
The Miliband–Poulantzas debate was a debate between Marxist theorists Ralph Miliband and Nicos Poulantzas concerning the nature of the state in capitalist societies. Their exchange was published in New Left Review, beginning with Poulantzas's review of Miliband's 1969 work on bourgeois democracies, The State in Capitalist Society. The exchange is typically characterized as a debate between Miliband's instrumentalist model of the capitalist state and Poulantzas' structural position; however, Bob Jessop argues that this account is misleading.
Democratic socialism is a left-wing economic and political philosophy that supports political democracy and some form of a socially owned economy, with a particular emphasis on economic democracy, workplace democracy, and workers' self-management within a market socialist, decentralised planned, or democratic centrally planned socialist economy. Democratic socialists argue that capitalism is inherently incompatible with the values of freedom, equality, and solidarity and that these ideals can only be achieved through the realisation of a socialist society. Although most democratic socialists seek a gradual transition to socialism, democratic socialism can support revolutionary or reformist politics to establish socialism. Democratic socialism was popularised by socialists who opposed the backsliding towards a one-party state in the Soviet Union and other countries during the 20th century.
Structural Marxism is an approach to Marxist philosophy based on structuralism, primarily associated with the work of the French philosopher Louis Althusser and his students. It was influential in France during the 1960s and 1970s, and also came to influence philosophers, political theorists and sociologists outside France during the 1970s. Other proponents of structural Marxism were the sociologist Nicos Poulantzas and the anthropologist Maurice Godelier. Many of Althusser's students broke with structural Marxism in the late 1960s and 1970s.
Instrumental Marxism, or elite model, is a theory which reasons that policy makers in government and positions of power tend to "share a common business or class background, and that their decisions will reflect their business or class interests". It perceives the role of the state as more personal than impersonal, where actions such as nepotism and favoritism are common among those in power, and as a result of this, the shared backgrounds between the economic elite and the state elite are discernible. The theory argues that due to the high concentration of wealth within the State that the actions of State actors seek to secure and increase their wealth by passing policies that benefit the economically superior class. It is also noted that businessmen-become-politicians who have a say in policy making “are not very likely, all the same, to find much merit in policies which appear to run counter to what they conceive to be in the interests of business.” Instrumental Marxism tends to view the state and law as ultimately an instrument or tool for individuals of the economically dominant class to use for their own purposes, particularly maintaining economic exploitation while promoting ideological assent to their hegemony.
State derivation has been understood since the 1970s as an attempt within Marxism and neo-Marxism to explain the emergence and extent of the state and its law within the bourgeois, modern economic system and therewith to derive the relationship between economics and politics from the structure of capitalist production.
