Capitalism And Feudalism Analysis
Before underlining the differences in economic growth and treatment of labour between capitalism and the earlier feudal system, it is necessary to understand the meaning of capitalism and feudalism separately.
The Wealth of nations (1776) is a book, written by the Scottish philosopher Adam Smith (1723-1790) in which he describes the nature of capitalism. (CN, 2010) The word “Capitalism” is derived from capital and the word capital itself deriving from the Latin word caput, meaning head as in a head of chattel, in other words a unit of movable wealth. In capitalism, money takes the place of chattel as the unit of movable wealth, and individuals, not the government, privately explain wealth’s use and circulation through acts of exchange. (Smith 1776,p 638) (M. Cahn 2014)
In England William the Conqueror gave the name of feudalism to the system of government after he defeated Harold at the Battle of Hastings. In the feudalism system there were kings, lords, knights and serfs and the hierarchy between them can be displayed as a pyramid, with the king at the top of the pyramid and the serfs of the country at the …show more content…
Feudalism mostly refers to a land based economy where as capitalism era, was dependent on international trades. Feudalism established that everyone owed the king and their immediate superior. In contrast, in capitalist society the necessity, talent and individual temperament encourages people to bring perfection in the business. In feudalism people were aspired by moving up the ranks of the pyramid power. Though, in capitalism making money and profit is the aim of individuals. Feudalism was a political system between a feudal power and his subjects. Capitalism is more of a commercial society in which people live by exchanging. It is an economic system based on private ownership of production and distribution to make
The Wealth of nations (1776) is a book, written by the Scottish philosopher Adam Smith (1723-1790) in which he describes the nature of capitalism. (CN, 2010) The word “Capitalism” is derived from capital and the word capital itself deriving from the Latin word caput, meaning head as in a head of chattel, in other words a unit of movable wealth. In capitalism, money takes the place of chattel as the unit of movable wealth, and individuals, not the government, privately explain wealth’s use and circulation through acts of exchange. (Smith 1776,p 638) (M. Cahn 2014)
In England William the Conqueror gave the name of feudalism to the system of government after he defeated Harold at the Battle of Hastings. In the feudalism system there were kings, lords, knights and serfs and the hierarchy between them can be displayed as a pyramid, with the king at the top of the pyramid and the serfs of the country at the …show more content…
Feudalism mostly refers to a land based economy where as capitalism era, was dependent on international trades. Feudalism established that everyone owed the king and their immediate superior. In contrast, in capitalist society the necessity, talent and individual temperament encourages people to bring perfection in the business. In feudalism people were aspired by moving up the ranks of the pyramid power. Though, in capitalism making money and profit is the aim of individuals. Feudalism was a political system between a feudal power and his subjects. Capitalism is more of a commercial society in which people live by exchanging. It is an economic system based on private ownership of production and distribution to make