 period of economic shrinkage. Up until this time English monarchy favored an economic system that was monopolistic in nature. The reason for this is that it gave England greater control over profits and taxation. However, as the merchant class began to grow, England?s economic policies began to hinder further growth. The merchant class (referred to by Marx as the bourgeoisie) began to compete with the monopolies and England?s economy grew increasingly unstable. The rising bourgeoisie began to enclose their land and focused their efforts more and more and their own material gain. These economic factors were, in a large part, responsible for the eventual revolution and execution of the King of England, Charles I.
The conversion to capitalism took place over a large period of time, but the changes that took place affected every aspect of society. It changed not only industry, but also politics, religion, laws, and people?s social interactions. In feudalism, wealth was tied to the land. Society was based on agriculture and 90% of the people worked the land. If someone owned land they were wealthy; the society was divided into two classes, landowners and non-landowners. In feudalism, wealth was inherited. Land was passed on when the landowner died to his descendants and therefore it was impossible for serfs to move up. With capitalism this all changed. Wealth was linked to trade and production. For the first time, serfs had the ability to acquire some wealth because wealth was no longer based on lineage. Under this new system, owning a business became the major way to generate wealth, which created some opportunity for serfs that had a skill. Furthermore, land became a commodity that could be bought and sold. Previously, land did not change hands and the king could seize it at any time. In capitalism property was bought and sold and people could do with it whatever they wished. In feudalism profits were considered immoral, but under capitalism profits became the way to obtain a better life.
Capitalism is the separation of the economy and the state. It is a social system based upon private ownership of the means of production, which entails a completely uncontrolled and unregulated economy where all land is privately owned. Capitalism has been described as the ?a social harmony through the pursuit of self-interest.? This is because those who promote capitalism, believe in that by leaving the state of the economy unregulated, and by each individual left in pursuit of his own self-interests, the economy will automatically adjust itself so that is runs with maximum efficiency. Today in the United States we live in a capitalist society (although our economy is not purely capitalistic because it is not completely unregulated). Under this system a large and growing section of the population survives based on the condition that it works for the owners of the means of production.
Production became a key component of this new way of life. Marx defines social class as ?relations to means of production?. Society class structure changed. Instead of society being divided into the landowners and non-landowners, it was divided into those the capitalist and the worker. Capitalists built huge factories instead of small workshops and began to employee hundred of workers at a time. The capitalist owned the factory, the land, and the raw materials and instructed the worker on what to do. Then the goods produced were sold and the capitalist paid the worker a wage and kept the profits. At a time when 90% of England were poor, former serfs, capitalists found plenty of people willing to work for almost nothing. Although, a select few of the workers who were skilled earned a slightly higher wage, the majority worked to just enough money to sustain themselves. The capitalist paid as low a wage as possible and tried to sell their products for as high a price as possible. Most capitalists were very successful. They reinvested their money into new ventures and their wealth grew.
Marx recognized that Capitalism divides society into classes, whose interest