Introduction to Sociology / Economy

 There has been some kind of economy after some people has been making and distributing goods or services. Especially economies developed larger as societies grew and became more complex. For most human the exchange of goods happened through social relationships. There were also traders who bartered in the an exchange.




 Capitalism is an economic and social system that capital and the non-worker factors of production or the means of production are privately regulated; worker, goods and capital are traded in market place; profits are taken by the proprietor or invested in technologies and industries; and wages are paid to work. Although capitalist-like organizations existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages, capitalism as a system developed gradually from the 16th century on in Europe. Capitalism gradually spread throughout Europe and other parts of the world. In the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world.

 There are how capitalism works. The economics of capitalism expanded out of the interactions of the following five items: 1. Commodities: There are two types of commodities: capital goods and consumer goods. 2. Money: Money is primarily a standardized means of exchange which serves to reduce all goods and commodities to a standard value. 3. Labour power: Labour includes all mental and physical human resources, including entrepreneurial capacity and management skills, which are needed to transform one type of commodity into another. 4. Means of production: All manufacturing aids to production such as tools, machinery, and buildings. 5.Production: The act of making goods or services through the combination of labour power and means of production.


 For a long time, I've been thinking in wonder the fact that people in the past have been the barter surplus products. Each time I touched something like this in the textbook, I actively agreed to term existence to life by creating a tool. I guess that people in the past are more smarter and wiser than modern people. Because, all things now, we have developed is those that are coming from their thoughts.