Pengertian Ideologi Kapitalisme : Sejarah, Tokoh, Ciri, Kelebihan Dan Kekurangan Ideologi Kapitalisme

Understanding the Ideology of Capitalism – What is meant by the ideology of capitalism? What are the characteristics of capitalism? Who is the originator of capitalism? What are the advantages and disadvantages of capitalist ideology? In order to understand it better, we will discuss the complete meaning of capitalist ideology, history, figures, characteristics, advantages and disadvantages of capitalist ideology.

Also read: Understanding Ideology

Understanding the Ideology of Capitalism

History of Capitalism

Early Capitalism (1500-1750)

Classical Capitalism (1750-1914)

Advanced Capitalism (1914-Present)

Characteristics of Capitalist Ideology

Advantages and Disadvantages of Capitalist Ideology

Benefits of Capitalism

Disadvantages of Capitalism

Understanding the Ideology of Capitalism

Etymologically, capitalism comes from the Latin word caput, which means head. In the 12th and 13th centuries the word was defined as funds, a sum of money, a stock of goods, or interest on a loan. In the 18th century this term was defined as productive capital.

The definition of capitalism is an understanding or ideology that places personal interests above the interests of the public or wider society.

In the ideology of capitalism, personal rights are placed above everything else, even in the economic system the government cannot intervene in what a person does in an effort to obtain maximum wealth. However, this ideology does not actually have a universally accepted definition.

Figures of capitalism include John Locke, Adam Smith, David Ricardo, Martin Luther King, Robert Malthus, Lord Keynes, Karl Marx and David Hume. Countries that adhere to the ideology of capitalism include England, the Netherlands, Spain, Portugal, France and Australia.

History of Capitalism

In the 18th century, the European plains were controlled by three large groups, namely kings, feudal lords, and the church. The church plays a big role in all aspects of life, the church does not have the right to determine the course of economic or political activities, even more than that. The church also promised to limit the freedom of every individual in all aspects of life, such as expressing opinions. In general, the church is very powerful here.

In this situation, the people felt tormented, giving rise to a reaction of resistance from tyrannical kings and feudal landlords. They demand Freedom, Fraternity and Equality. This situation gave birth to several major ideologies such as liberalism in politics and the values ​​of freedom in the field of science.

The industrial revolution that occurred in England at that time also brought a new spirit related to the spirit of capitalism. That the ideology of capitalism emerged into the economic realm. When the industrial revolution occurred in England, there was a change in economic activity from an agrarian society pattern to an industrial society. This results in changes in the industrial tools used.

The founder of capitalism was Adam Smith (1729-1790 AD), a classical figure whose full name was Prof. Doctor John Adam Smith. Adam Smith was born in Kirkaldy, Scotland on June 5, 1723 AD. Adam Smith is famous for his works, namely An Inquiry Into The Nature And Causes Of The Wealth Of Nations and The Theory Of Moral Sentiments. Adam Smith’s thoughts on the “Invisible Hand” and the Free Market which are products and his thoughts are closely related to the natural freedom of each individual to produce.

Broadly speaking, there are three stages in the history of capitalism, namely:

Also read: Understanding Capitalism

Early Capitalism (1500-1750)

The early period of capitalism, also known as the Mercantilism period, comes from the word Merchand which means trader. At this time, European society, especially England, began to change its system of life from being more focused on agriculture to shifting to industry.

Classical Capitalism (1750-1914)

In the 18th century, mercantilism began to be replaced by the ideology introduced by Adam Smith (the father of capitalism). During this period of classical capitalism, the private sector began to hold full power in the economic sector.

At this time there is a very large economic gap where private capital owners have freedom to trade, while workers or farmers only receive small wages.

Advanced Capitalism (1914-Present)

In the 20th century, capitalism continued to develop and adapt to the needs of humanity and its environment. In this era of advanced capitalism, the actual perpetrators of economic activity are not state institutions, but rather entrepreneurs with large capital. However, the role of the state has not completely disappeared, the state has actually become a complementary actor in equalizing the country’s economy.

Characteristics of Capitalist Ideology

The characteristics or features of the ideology of capitalism are:

  • Widespread recognition of personal rights
  • Ownership of the means of production in individual hands
  • The market functions to provide signals to producers and consumers in the form of prices.
  • Government intervention is minimized.
  • Individuals are free to choose a job or business that is considered good for them.
  • The economy is regulated by market mechanisms.
  • Humans are seen as homo economicus creatures, who always pursue their own interests (profit).

The characteristics of countries that adhere to the ideology of capitalism include:

  • The freedom of citizens is upheld. Citizens are free to do anything as long as they do not violate the law.
  • The state only plays a role as a supervisor of legal order.
  • Monopoly capitalists put aside religious values, giving rise to secularism or an ideology that separates religion and the state.

Also read: Understanding Communism Ideology

Advantages and Disadvantages of Capitalist Ideology

Benefits of Capitalism

The advantages of the ideology of capitalism include:

  • Creativity and community motivation are high because everyone is free to do what is best for themselves.
  • Stimulate people to work hard.
  • People’s creativity becomes more developed with the freedom to do their best. Individuals have many choices in obtaining profits.
  • The products and services offered are increasingly developing both in terms of quality and type, this is due to competition from traders.
  • The ideology of capitalism is more efficient in utilizing resources and distributing goods.
  • Capitalism forms an economy where consumers rule the market.
  • Political and social supervision is minimal because the time and costs required are smaller.
  • Encouraging decentralized economic growth, this factor is considered one of capitalism’s greatest advantages.
  • In a decentralized economy, individuals have more choices in business.
  • Hard work is highly valued in a capitalist economy, because entrepreneurs have good performance and are able to continue to innovate to win over their competitors.

Disadvantages of Capitalism

Disadvantages of capitalism ideology include:

  • Even though everyone has the same opportunities, the results of a capitalist economy are greatly influenced by the capital they own.
    So people with larger initial capital have a greater chance of getting bigger profits.
  • Can give rise to unhealthy competition.
  • Can create an economy that is oriented only from a materialistic point of view (money).
  • Encourages unfair distribution of wealth.
  • There are no perfect competitors, there are imperfect competition and monopolistic competition.
  • The price system fails to allocate resources efficiently due to externalities that “do not take into account factors that depress workers’ wages, etc.”.
  • Some people consider the intense competition brought by capitalism to be their main weakness.
  • Capitalism creates an economy that is money-oriented, business companies will view the economy from a materialistic point of view.
  • Profit is seen as the goal of business when business giants take over small companies.
  • Capitalism triggers a scarcity of natural resources because there are no policies to maintain sustainable economic growth.
  • Capitalism is believed to cause an unfair distribution of wealth because wealth and power are only controlled by a few people.

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This article discusses the complete understanding of the ideology of capitalism, history, figures, characteristics, advantages and disadvantages of the ideology of capitalism. Hopefully this is useful and don’t forget to follow other posts.


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