“Dimensions of Ambedkarism.”

Prof M.K.Dongre

Economic Thought and isms

1.      Capitalism

Capitalism is the basic economic system of the modern age. “It involves the method of enterprise and a rational capitalistic establishment; and the spirit of capitalism illustrates that attitude which seeks profit rationally and systematically”, observes Max Weber. As defined by Hobson, it is the organisation of business upon a large scale by an employer or company of employers possessing an accumulated stock wherewith to acquire raw materials and tools, and hire labour so as to produce an increased quantity of wealth which shall constitute profit. From various definitions of capitalism Dr. S.K. Srivastava concludes that, “Capitalism or capitalist civilization is that stage in the development of Industry and legal institutions in which the majority of workers find themselves divorced from the ownership of the means of production in such way as they become mere wage earners whose subsistence, security and personal freedom depend upon capitalists who can be counted on fingers, control the entire organisation of land, labour and machinery; and undertake business and production purely from the point of view of private gain”.

1 Hence, the salient features of the capitalism are: (i) Private property, (ii) Ownership of means of production, (iii) Economic freedom,(iv) Vital role of entrepreneur, and (v) Competition accompanied by oligopoly. Mr. V.B. Singh lays stress on the motive of profit making and points out the following characteristics of capitalism: (i) Profit constitutes the motivating force for the advancement of economic activities;
(ii) The profit realised is not controlled by the State or the public bodies, but by individual entrepreneurs; and (iii) Profit is generally invested in the production of wealth, so as to get further profits.