Business Communication | Kinds Of Capitalism

KINDS OF CAPITALISM

Capitalism , keeping , it past history in view , can be classified as under:

1.     Laissez faire capitalism

2.     Modified capitalism

LAISSEZ FAIRE CAPITALISM

Laissez faire is a French term meaning absence of governmental control over industry and business . This system of capitalism started off in Europe and the U.S amidst industrial revolution and came to an end in between the first and second world wars. During the period the system was quite free of any type of government interference and, consequently , the manufacture and seller went rampant in plundering customer and produced innumerable other evils . the producers created business combination to keep prices high and quality low and curb  competition . The ultimate result was the Great Depression tearing down the industrial development , creating unemployment , and bringing bankruptcies.

MODIFIED CAPITALISM

It is far better economic system than the laissez faire capitalism . It was first introduced in the U.S . After studying the cause of the Great Depression the government curbing the evils of the free capitalism , enacted stern laws , and banned all forms of business combination . Now in most countries across the world prevails modified  capitalism marking strict laws , defending interests of all parties involved in any type of business including consumers , producers, capitalists , laborers and the government itself . Best example of countries adopting modified capitalism are U.S. in America , Japan in Asia , Germany in Europe , and Australia where all means of production , utility services are in the private sector . Ordnance  factories , railways , airliners , small and heavy industries banks, insurances companies , and post officers are all in the private sector in these countries.   

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