Themes in American History: Capitalism, Slavery, Democracy

In the past several decades, capitalism has played an important role in our society. In the article, “What is capitalism” author James Fulcher in this article, he explained how capitalism affects different countries. The author believes that almost all economic activities in capitalist society are “investment” and “profit”. Capitalism is about investing for profit. He examined the different forms of capitalism in the United Kingdom, Japan, Sweden, and the United States, and discussed whether capital has broken away from the boundaries of the state and is moving toward optimization. He also cited the tulip frenzy in the Netherlands in the 17th century, the recent financial crisis in Southeast Asia, Enron corporation in the United States, and World Communications as examples, and thus discussed the future of capitalism.

The reading adds to my knowledge of the subject of what I previously thought about this aspect of American or global history was that I found out how capitalism plays a significant way in American. For example, in the article, Fulcher states, “Capital is money that is invested in order to make more money.” And “Capitalists existed before capitalism proper. Since the earliest times merchants have made money by investing in goods that they sold at a profit.” (Fulcher pg. 14) this part shows me how capitalism was during the past, the merchants made money by the profit of the item they sell to others. In addition, what I knowns about that Capitalism production depends on the exploitation of wage labor, and works have become what Marx called “wage slaves”.

The historic transformation, or change over time, that the author is describing in the reading was capitalism has gone through three stages: early commercial capitalism, modern industrial capitalism, and now financial capitalism. According to the historian, this change of capitalism happens and takes place gradually because in the earlier time period the British East India company conducts long-distance trade through the investment of the rich, for example in the exchange for spice gold, pepper, cloves, and nutmegs. If the ship successfully returns to England, the merchant can make far more profit than the investment. If it sinks on a rock or encounters a pirate, then the merchant will lose all their money. This was the early commercial capitalism that Fulcher mention in the article. Within the emergence of the Industrial Revolution, large machines need to be manipulated by workers, so the use of workers appeared. Industrial capitalism required regular and continuous work, “Expensive machinery had to be kept constantly in use. Idleness and drunkenness, even wandering around and conversation, could not be allowed.” (Fulcher pg.7) Then the following comes with the financial capitalism which basely talks about how high-value goods works, for example in the article Fulcher states, “If the price of the corn is high but the harvest is some way off, a farmer can lock into the existing price by making a deal with a merchant to sell the corn at this price in three months’ time.” (Fulcher pg.10) This shows the way of how farmer wants to keep the high price before the price decrease, so they will decide to make deals with the merchant to keep the high price.

Fulcher’s article gives a lot of ideas of how capitalism work and how it changes throughout time.

 

It is often presumed that the progression of our current state of economy, -Free market Capitalism-, has been  stagnant throughout modern history, with the trading  systems of the Old World being the foundation of Capitalism itself.  The concept of Capitalism has always been prevalent in much of the world’s past economies and societies, with profit being a main source of motivation for the seemingly unwavering ambitions of the nations of the Old World, however, it must be noted that Capitalism, -as done so in James Fulcher’s’ “Capitalism: A Very Short Introduction”-, and all that it entails has been shaped over time to become what it is now;”…the investment of money in the expectation of making a profit [or capital]” (Fulcher 2), as it has had differing phases and/or forms that has been accommodated to the time and place in which it was being practiced in. Fulcher throughout the text, implies this.

 

The earliest form of Capitalism, Merchant Capitalism, -as indicated by Fulcher- was the accumulation of profits through trading systems. It occurred within the 17th century in Europe. With it, travel and the means to travel were necessary for this kind of Capitalism to take place. And thus, expeditions involving the movement of large cargo ships and crews led by nationally representative trading companies that were “controlled and administered” by rich merchants were launched to help exchange and transport goods between various European, Asian and African countries. These expeditions despite being successful and efficient in their tasks, were not exempt from risk. An example of this is the expeditions led by the East India Company of England in 1601-1608, where,-after a few successes were accomplished in acquiring spices from the East Indies for trade-, some of the ships that were sent on these ventures such as, Susan, Hector and Ascension  were either found ” …lost at sea…with most of [their] crew found dead [or]…wrecked… [which ultimately led to] the investors [people who funded the expeditions] in this expedition [to lose] all their capital.”(Fulcher 1). Merchant Capitalism given all the risks that occurred under it, continued to serve as the economic system many of the Old World followed until the establishment and integration of the New World and the various kinds of products it had to offer into the international economy, which in a century or so later, following the 17th, brought about Industrialization and Capitalist Production.

 

Capitalist Production has been donned as more significant to the overall establishment of our modern day Capitalism than other forms of Capitalism themselves because Capitalist Production, as Fulcher implies, “…depends on the exploitation of wage labour, which also fuels the consumption of the goods and services produced by capitalist enterprises.”(Fulcher 18). Capitalist Production which sought out labor as a form of product in contrast to the more traditional kinds of product to the greater scale of the economy, is what eventually led to Financial Capitalism.

 

Financial Capitalism, -the obtaining of money profits through financial operations or systems-, when involving risk, unlike it’s predecessor, Merchant Capitalism and  although still possible and impactful, risk, weighs differently and less so.This is possible through, as Fulcher describes as “Speculation,…[which] occurs when something is bought in the expectation of selling it, without increasing its value by processing it in some way, at a higher price in the future…it is…a way of avoiding risk.” (Fulcher 17).  Financial Capitalism, given that it was created in the late 19th century, in all its more modern methods and techniques like the stock market and banking, is more reflective of and influential towards our current form of Free Market Capitalism.

 

Fulcher makes note that Capitalism through all of its phases and gradual changes was and still is transformative as markets, products and the means to invest money into them for profit will always be changing.

The passage talks about why Virginia and many other colonies moved toward having slaves. Morgan explains how people would be transported to Virginia to work and be under a contract. Those who were under a contract were called a servitude. Servitude was the closest thing to what slavery was before slavery actually became a thing in Virginia.
A enduring issue during the time was that servitude would lead to slavery. People were given longer sentences for a mistake they had made. In the early 17th century the first African slaves were in Virginia. At first the slaves would die because their immune system was not used to the disease in the New World that people from Europe brought. Many did not see the point in buying them to do labor if they were going to die. Slaves were not a good investment for those who want workers. Tobacco fields needed a lot of labor and workers willing to work in harsh conditions. Many Virginians owned land that had tobacco fields. English servants were not efficient too. So Virginians would look toward slaves but slaves cost more then servants. Tobacco and sugar became a demand from England so those who had land needed to find a way to buy slaves. Some ways that they did this was “When they wanted to buy slaves in Barbados, they could send cattle and hogs in exchange.”(303) Slaves were treated like objects. Their conditions and treatment would only get worse. Slaves would work hard and have no break from the harsh labor. Women were not known to work but slave women were an exception. When slave women were pregnant the children they had would be enslaved since birth. They would become the property of the master and would only help the growth of enslaved people in Virginia. Laws were made more toward servants who tried to run away. Slaves never had freedom unlike servants that have to work till their contract is over and they would become free. In order to keep the slaves from running they would be punished. Masters want the slaves to fear them in order to have control over the slaves because unlike the servants they had a sort of freedom. Virginians only saw slaves as a profit because slaves would work hard for nothing in return. Virginians made profit off those who were working hard and treated poorly.

     During American History, we see that people get their success from domination in society. Domination can occur in many ways and by using many methods, but only to meet one goal. That is to make money(or a profit). People who are in the lower class generally identify as poor people. But, in order to show dominance, they classified themselves as the free market. James Fulcher expressed the dominance that evolved from capitalism in the 17th century, taking advantage of the nation. Capitalism is investing in money to eventually make more profit, sometimes in risky ways. For example, in the 17th century, these merchants invested in some type of money or product and traveled long distances by ship to sell them in the market for more money. Some of these expeditions were successful and others were not as successful or were total failures. For example, the English East India Company had many voyages to sell their profit. On a couple of these voyages, the shareholders made a profit of 95% on their investment. However, on another voyage, the ship ran aground due to the “proud and headstrong master”(Page 1) ignoring local warnings about shoaling waters. The crew was ambushed(or surprised) and the captain was killed. The investors’ entire capital was lost. So at times, capitalism is beneficial for making a profit but is risky when traveling long distances overseas. 

     The reading adds to my knowledge about the history of capitalism in the sense that capitalism is beneficial to those who successfully make a profit by receiving their investment. But, if you didn’t invest money or if your investment money got lost, it would be really hurtful. Not only you would be hurt, but the economy will also be hurt. According to page 6, between 1810 and 1830, there were organized strikes, which were eventually shut down by the employers, and the strikers were arrested with the help of the state. The strikers were the craft and labor workers who were upset by the wage rate being so down. The wages for these workers went to the employers who were the shareholders of capitals. This is a huge problem since the nation develops from the work that laborers do. Based on the evidence, capitalism is really unfair and hurtful to those who don’t have any investments to start from and can’t build up any profit. 

     This is where capitalism peaks because of its strange, but successful methodology. When one person has even a little share of an investment, it can grow into more money for individuals, but little to nothing for the economy. In summary, Fulcher expressed that capitalism is the investment of money to create a profit or more money. 

    The argument that the author shows why and how Virginians had started to turn toward a slave-labor economy in addition to this how it had imported workers to England as well as Virginians imported workers from England to ensure their profits.  

      Edmund Morgan suggests that as soon as Virginians found tobacco, that the colony was on the road for slavery. The forcing servants into slavery might have led to massive rebellion, that the enslave Virginians, that on chapter 15 it states that “Virginians had only men who were already enslaved after the initial risks of the transformation had been sustained by other elsewhere”. (297) This quote illustrates that the people that were already a servant will become enslaved. Therefore in 1660, with a decline in immigration due to an end to England’s. population problems, it became more advantageous for Virginia planters to buy slaves. Edmund Morgan further explains that the Virginia planters had advantages over other plantation economies. They could have replaced the slaves at a lower rate than sugar planters, giving a greater return to the investment of a rise in the price of tobacco meant they could have pay from them, as well as tobacco required, that in chapter 15 it states that, “And man small amount of capital, insufficient for the outlay of sugar plantation.”  (303) This actively illustrates the quote that the small production equipment was not enough for the capital. Therefore, the men who wanted to get into plantation production went to Virginia. Another reason that the author would argue with is that the men who arrived had garnered more of the prestige in England that they brought slavery to Virginia by buying where it states that, “These were the man who brought slavery to Virginian, simply by buying slaves instead of servants.” (304) This actively illustrates that people that are servants are no longer servants but slaves. Therefore, by the end of the century, more than half of Virginia’s labor force was enslaved.