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Description of Capitalism: A Treatise on Economics.

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During the second period, 1790-1865, several industries became organized along capitalist lines and some sectors of agriculture lost their subsistence character until by the period's end agriculture as a whole was producing for the market.

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On the other hand, once Capitalism took hold on America, she became the feeder, protector, and dreams of those who were the oppressed and poor of the world.

Applying the new economics of organization and relational theories of the firm to the problem of understanding cross‐national variation in the political economy, this volume elaborates a new understanding of the institutional differences that characterize the ‘varieties of capitalism’ found among the developed economies.

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The first, from 1600 to 1790, is characterized by handicraft-subsistence production alongside elements of a semi-capitalist economy stemming from commercial production of tobacco.

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"America is the Canaan of capitalism, its promised land," wrote German economist Werner Sombart in 1906. Here, as American economic historian William N.

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Free market economics or capitalism is based on the idea of maximizing social welfare by letting supply and demand dictate how trade in any good or service happens. To quote Mark A. Zupan, (The Virtues of Free Markets), “Free markets have many virtues. Arguably, the most recognized is the expansion of individual choice—and thus freedom—through mutually beneficial exchange”. When individuals choose to engage in trade, they do so based on their personal preferences and a sound knowledge of their ability to produce a good or pay for it. In other forms of economic systems such as socialism or communism a lot of opportunities to trade with others, based on personal preferences is taken away by the government.

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In-fact the definition of socialism is a government act that reallocates resources based on socially desirable goals, as opposed to free market principles. Bruce. R Scott, (The Political Economy of Capitalism), describes an evolved capitalist system as one having two hands, “ an invisible hand that is implicit in the pricing mechanism and a visible hand that is explicitly managed by government through a legislature and a bureaucracy”. The visible hand manages the invisible, based on socially desirable outcomes, a guiding principle of socialist thought. The debate then shifts not to the question of if other modes of economic management are viable but how, when and where applying different modes of such systems should be utilized?

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