Evolution of Capitalism - Essay Example

The steam engine was one of the major innovations of the era. Karl Max was a revolutionist during the industrial revolution. He was a socialist that had very peculiar views about capitalism. According to Karl Max capitalism is based on his version of the labor theory of value and includes the analysis of capitalist profit as the extraction of surplus value from the exploited proletariat (Standord, 2003).

Capitalism has evolved a lot over time. The 20th century marked a new era in which the stock market served as a critical mechanism that was used by capitalists to raise money. The two most utilized instruments that Wall Street popularized to raise money were the sale of common stocks and the issuance of corporate bonds. Technological advances enabled capitalists to produce more at lower costs. During the 1980’s a key innovation that sparked a new economic era was the computer. Computers facilitated the work of many professionals both in the manufacturing and service industries. As manufacturing matured in the United States the computer helped the United States transform its economy into a knowledge-based service economy.