Capitalism as an economic system operates without conscious direction from an external source; it governs itself through a myriad of personal choices. The magnificent progress achieved by capitalism the spectacular improvement in the conditions of eco...
Capitalism as an economic system operates without conscious direction from an external source; it governs itself through a myriad of personal choices. The magnificent progress achieved by capitalism the spectacular improvement in the conditions of economic life on earth is a matter of historical record. Capitalism has developed along the four stages which are mercantile capitalism (or commercial capitalism), industrial capitalism, finance capitalism and monopoly capitalism.
This paper is organized as follows. Section Ⅰ is concerned with the beginning of modern capitalism. Section Ⅱ includes some problems of modern capitalism such as monopoly, Section Ⅲ discusses the theory of workable competition or efficient competition. Section Ⅳ presents the theory of industrial organization. In Section Ⅴ a conclusion and transfer problems of capitalism are discussed. Especially Section Ⅳ is concerned with Caves-Galbraith Hypothesis, market structure and economic performance, and industrial organization policy.
Then can capitalism survive? This question opens a great realm of inquiry. The theory of convergency, maintenance (or revision) and transformation should be explored further.