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Jan 1, 900
Creation of Merchant Capitalism (Islam)
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Jan 1, 1200
Merchant Capitalism (Medieval Europe)
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Merchant Capitalism (Modern Europe)
In the 16th century, merchant capitalism became prominent in European civilizations. This version of capitalism is different from the fully-developed kind by noticeable features like lack of commercial financing and industrialization. Private financiers were very common instead. This preceded full-fledged capitalism, which later developed and overcame it’s merchant-based counterpart. Became an increasingly significant economic force. -
Creation of Mercantilism
The economic idea that trade establishes wealth, countries intend on becoming wealthy through trade with other countries, and exporting more than they import and increasing availability of precious stones and prized metals to be sold -
Modern Capitalism developed
Defined as an economic/political system where trade and industry is controlled by private owners instead of by the state. The selling of goods is based entirely on free supply and demand and determined by competition within the market -
Capitalism influence becomes prominent
Made it’s appearance in Northwestern European countries like England and the Netherlands. Shortly after the establishment of capitalism, the first joint-stock companies developed, which was established in Amsterdam and London. A joint-stock company is where a company’s stock is owned by the shareholders in separate (but connected) portions. The creation of these companies in Europe lead to the first versions of stock exchanges, which was related to the increasing of trade and commerce. -
Tariffs placed on imports (Mercantilism)
An example of this was Scotland, which was taxed very heavily during the 16th century but these tariffs allowed for access to English trading markets. Tariffs were established because Mercantilism was very focused on becoming wealthy due to trading and exporting increasing amounts, and taxes allowed for a quick way for countries to get wealthier. This paved way for the acceptance of buying items that were produced intra-regionally to avoid high tariffs in other countries -
Increased Government influence on industry
(Mercantilism) To encourage and increase the rate of development, these governments would make capital injections, or investments into a capital of a company, in order to boost the creation of new free markets. This allowed for increasing awareness of the market, and boosting development of growing companies. Sometimes the governments would completely take over industries and institute monopolies, or excessive control over of the supply/trade of a commodity, service, or anything that is offered. -
Marxism created in retaliation to Capitalism
the political and economic theories of Karl Marx and Friedrich Engels, later developed by their followers to form the basis for the theory and practice of communism. -
(Mid-1800's) Communism created
a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. -
(Mid-1800's) Socialism created
a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
