Summary of Capitalism

The text contains some quotations from people like philosophers, economists or politicians. The first section is the introduction of the topic: everyone has a different definition of capitalism and according to the blog the best was given by Joseph Schumpeter. Capitalism is the engine of the economy and within its definition there is a multiple point of view.

According to Schumpeter the essential fact of capitalism is creative destruction, according to which the best companies generate profits, the poor make lower profits, while the worst quickly disappear from the market because they can not cover their production costs with revenues. The economist underlines the way in which new products, new techniques, new forms of organization appear on the social scene, and this is due to the process of industrialization, which revolutionizes the economic structure of the countries.

Winston Churchill sees capitalism as a healthy horse, pulling a sturdy wagon, because the wealth isn't rightly distributed among the population.

According to Samuel Smiles, the man does not have to spend everything he earns from work, because he must know how to manage their wealth. For this reason, the historian defines capitalism as a man.

Summary of article "A crisis of Capitalism"

The article examines the crisis of capitalism in Italy. The Italian country, belonging to the European Union, has a "single currency", that is a limitation because it is not supported by political sovereignty.

One cause of the Italian crisis is the crisis in Europe that led to stagnation, survived thanks to us-driven exports, and that was caused by the stupidity of European leaders. In Italy, this situation led to a significant reduction in the rate of GDP growth and a dramatic increase in interest rates.

The structural deficit is a second cause of the crisis, which led to a decrease in labor productivity and the rate of growth, the disappearance of industries and import of technology.

Policies of labor flexibility led to a fall in labor productivity and a full under-employment.

Some economists have tried to provide a solution to overcome the crisis: first, a socialization of investment, efficient banks, utilities, state intervention as a direct provider of employment, and capital controls.