What difference does it make that production is capitalist production Essay

What difference does it make that take is capitalist production - Essay congresswomanThe term Capitalist was first manipulationd in 1848 by Karl Marx and Frederick Engels in the Communist Manifesto in the famous sentence Modern Industry has reborn the little workshop of the patriarchal master into the great factory of the industrial capitalist1. According to the Houghton Mifflin Company, capitalism can be defined as play along An economic system in which the means of production and distribution atomic number 18 privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.2The capitalist production is a system where the owners of m stary capital - referred as capitalists - hire labor to work in the production plow. The capitalists touch within a corporation where they own shares. The decision process can be made by only one of them - commonly the one that owns the largest amount of shares - or they can appoint a manager who will take the decisions regarding the production for them. The output produced as well as the fixed and circulate capital goods used in the production and the residual of the value of output over total costs, including labor costs belong to the capitalists.As the capitalist process is based on the amount of capital, if the capitalists need additional capital - more than what they own - they can borrow from lenders and retain a part of the profit from old years to use it as capital this year.Cooperative ProductionEven though Karl Marx was historically the first opponent to capitalism, hes the one in the Capital3 who gave the best history of its mechanisms. He also provided an alternative to the capital based mode of production cooperatives. He did non actually present this alternative as we know it instantly but gave the main grouds of its creation. It is why usually cooperatives are associated with socialist and communist regimes. It is Robert Owen, a Wels hman, who is the known creator of the cooperative movement in the nineteenth century. The some common definition of a cooperative is an organization which is owned by and operated for the benefit of those using its services.4 In other words a group of workers gather in order to set up a production process. Each of them participates in the production process, has shares and voting rights. In a cooperative, workers make common decisions or choose a manager to take the decisions regarding the production process. As in the capitalist production, the members of a cooperative can borrow money from lenders if they can not provide a sufficient amount of capital to the production process or retain a part of the net income from previous years to use it as capital this year.The main difference between capitalist production and a cooperative one is that the owners of the cooperative participate in the production process. They are not separated from the activity which is the case in the capital ist model. And mainly, they benefit from the entire production. They are not only paid for their labor but