Capitalism has its critics and its defenders, these days it seems like hardly anyone is indifferent.

Some people say that capitalism encourages bad behavior,

other say that is the best way to create a prosperous and free society underlying. Both of these arguments about what capitalism actually means. Typically the
word is used to describe a system of free markets and private ownership, anything other than capitalism is assumed to involve more regulation and government
intervention, while a free market is one of the characteristics of capitalism. There is another characteristics that is perhaps more relevant to the debate.
Capitalism as a system emerged alongside industrialization and these two concepts are closely related.
So to be understand capitalism, we need to take a closer look at what happened during industrialization process, what happened in general terms is that the
economy became less labor intensive and more capital intensive. Capital in this context refers to the tools machines and productive assets used to make goods.
The development of factories and production technologies had a profound effect on society. Products became more accessible and affordable giving people a
standard of living that was never before possible. People started to leave their farms and move to the cities, urban living offered the prospect of better jobs,
more opportunities, greater material comforts, education, culture, and refinement as well as an escape from the difficulty and uncertainty of country living.
These seemed to be positive results, but in the process of urbanization, something happened that began to affect society in a negative way. The factors of
production, land, labor, and capital, which were one united, now became separate inputs. In the country the ideal was for a farmer to work his own land using
his own tools, but in the city, the capital owners provided the factories and tools and the workers provided the labor for the average worker employed became
the primary means of supporting oneself. This simple change had at least four negative effects.
First, there was a loss of self-reliance, workers who once supported themselves, now found themselves in a heightened state of vulnerability, they were often
subjected to poor working conditions and long hours, those who lost their job discovered that without social safety nets, starvation was a real possibility.
Second, there was a loss of equality prior to industrialization, labor was a great equalizer, farmers reaped rewards that were in proportion to the work that they
put in. This called the law of the harvest and for farmers it applied in a very literal way, but in the cities it was different, those who owned productive assets and
had money were able to more easily generate wealth by living off the labor of others. Thus, obtaining even more money and property as a result new social
classes emerged and the economy became more of zero-sum game with winners and losers. People found that in this new environment, the law of the harvest
was more ambiguous rewards were not always in proportion to efforts, but rather one’s property connections and ability to manipulate the system. In the city,
the rich and the poor learned that they needed each other. Capital owners needed employees, workers needed jobs, the rich needed the poor to maintain a
distinct social status. The urban poor also needed the rich to fuel their hopes of what they might be able to have, but separation was paramount as soon as
people who were considered unsavory started setting into urban neighborhoods, the wealthy fled to the suburbs creating urban blight and the effect, the
suburban life became a symbol of upward mobility and a way to physically separate oneself from the poor.
Third, there was a loss of political freedom. In pre-industrial, the people were sovereign, the family was the foundation of society, power flowed upwards from
family to municipal institutions and onto state and national governments, a system of federalism that the constitution was designed to protect, but during
industrialization, the political system started to turn upside down as money interests began to have a greater influence over public policy. The workplace
replaced the family as the foundation of society.
Fourth, a number of cultural changes took place. The pre-industrial life was very difficult yet, farmers enjoyed what we might describe as a unified way of
living in which work, family life, religion, community, and education all blended together. After industrialization concepts that were once united now became
separated and people began to compartmentalize their lives, markets and morality, profit and planet, liberty and equality, work and life. These now became
mutually exclusive objectives as if they had to be kept in balance you couldn’t pursue one without sacrificing the other, as workers became detached from the
fruits of their labors, our society began to place a greater premium on buying and consuming things rather than making them. Consumerism replaced
craftsmanship. A person’s occupation became the foundation for his identity, previously people tended to be generalists, now it’s all about specialization.
Gender imbalances also emerged as men began leaving the home to work in the factories, the home was no longer the place to be, soon women also wanted to
leave. So that they two could take advantage of all the opportunity that capitalism has to offer.
We can summarize all these negative effects by saying that previously economic activity was something designed to support the lives of the people, but in the
new system, people had to adapt to the economy and its demands. All these changes can be attributed to the simple fact that labor and capital became separated,
this separation while tending to be overlooked is one of the defining characteristics of our modern capitalist system. Identifying this issue as for it as opposed to
other characteristics of capitalism is useful insight that can help us as we consider the question of where to go from here.
So, I am truly believe that capitalism is not the best economic system that must be applied in all country of the world.