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97-484: Petre Roman ( Romanian pronunciation: [ˈpetre ˈroman] ; born 22 July 1946) is a Romanian engineer and politician who was Prime Minister of Romania from 1989 to 1991, when his government was overthrown by the intervention of the miners led by Miron Cozma in the September 1991 Mineriad . Although regarded as the first Romanian prime minister since 1945 who was not a communist or communist sympathiser, he
194-489: A financial infrastructure of money and investment that makes possible credit and debt , entrepreneurship , commodification , voluntary exchange , wage labor , production of commodities and services , and a strong emphasis on innovation and economic growth . In a market economy , decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets —whereas prices and
291-558: A left-wing socialist , Petre Roman was largely the middle ground between the world-views of his colleagues, as he wanted to replace the Marxist view of socialism as a transitory stage with a more democratic understanding of socialism . Petre Roman participated directly in the Romanian Revolution, forming a barricade in the centre of Bucharest from the days of 21 and 22 December. On 22 December 1989, Petre Roman spoke from
388-477: A broader and expanding money-based economy. The system put pressure on both landlords and tenants to increase the productivity of agriculture to make profit; the weakened coercive power of the aristocracy to extract peasant surpluses encouraged them to try better methods, and the tenants also had incentive to improve their methods in order to flourish in a competitive labor market . Terms of rent for land were becoming subject to economic market forces rather than to
485-444: A commercial organization. The term of a prime minister ends with the individual's resignation, dismissal following a motion of no confidence, loss of electoral rights (following a conviction), incompatibility with the office, death or expiration of the term of the legislature. The prime minister, together with the minister tasked with the particular field of government, can sign resolutions and ordinances to take effect as executive orders
582-479: A daughter, Oana. In February 2007, husband and wife confirmed that they were divorcing; the divorce was made final on Good Friday , 6 April 2007. In June 2009, he married a pregnant Silvia Chifiriuc (who is 26 years his junior) in a Romanian Orthodox wedding. Petre Roman was heavily involved in the Romanian Revolution of December 1989 as a member of the National Salvation Front (FSN), both as
679-585: A formal property system where ownership and transactions are clearly recorded. According to de Soto, this is the process by which physical assets are transformed into capital, which in turn may be used in many more ways and much more efficiently in the market economy. A number of Marxian economists have argued that the inclosure acts in England and similar legislation elsewhere were an integral part of capitalist primitive accumulation and that specific legal frameworks of private land ownership have been integral to
776-423: A large middle class were good for democracy. He also argued that a market economy provided a substitute for government control of the economy, which reduces the risks of tyranny and authoritarianism. In his book The Road to Serfdom (1944), Friedrich Hayek (1899–1992) asserted that the free-market understanding of economic freedom as present in capitalism is a requisite of political freedom . He argued that
873-505: A large number of sellers nor to a market in final equilibrium . Competition is widespread throughout the market process . It is a condition where "buyers tend to compete with other buyers, and sellers tend to compete with other sellers". In offering goods for exchange, buyers competitively bid to purchase specific quantities of specific goods which are available, or might be available if sellers were to choose to offer such goods. Similarly, sellers bid against other sellers in offering goods on
970-631: A less protectionist policy, with the 1846 repeal of the Corn Laws and the 1849 repeal of the Navigation Acts . Britain reduced tariffs and quotas , in line with David Ricardo's advocacy of free trade . Broader processes of globalization carried capitalism across the world. By the beginning of the nineteenth century, a series of loosely connected market systems had come together as a relatively integrated global system, in turn intensifying processes of economic and other globalization. Late in
1067-730: A quarter of deputies and senators and for it to pass, a majority of deputies and senators must vote in favour of it. After a motion of no confidence is adopted, the prime minister and his Cabinet are officially dismissed and the President must designate an individual to form a new government. Since 1989, five prime ministers have been dismissed following the adoption of a motion of no confidence: Emil Boc (2009), Mihai Răzvan Ungureanu (2012), Sorin Grindeanu (2017), Viorica Dăncilă (2019), and Florin Cîțu (2021). Originally styled President of
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#17328021065941164-474: A result of the Industrial Revolution. The accumulation of capital is the primary mechanism through which capitalist economies promote economic growth . However, it is a characteristic of such economies that they experience a business cycle of economic growth followed by recessions. The term "capitalist", meaning an owner of capital , appears earlier than the term "capitalism" and dates to
1261-490: A revolutionary and as a leading political figure. Given that the revolution was led by politicians united not by a cohesive ideology, but by resentment towards the Ceaușescu regime , in-fighting soon began, especially between its leaders, namely, centre-left liberal Dumitru Mazilu , who wished to instill capitalism , and neo-communist Ion Iliescu , who wanted to keep communism/hard line socialism, but remove Ceaușescu. As
1358-576: A safe environment for investment and capitalism. Similarly, Suharto 's authoritarian reign and extirpation of the Communist Party of Indonesia allowed for the expansion of capitalism in Indonesia . The term "capitalism" in its modern sense is often attributed to Karl Marx . In his Das Kapital , Marx analyzed the " capitalist mode of production " using a method of understanding today known as Marxism . However, Marx himself rarely used
1455-686: A small scale for centuries in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labor. Simple commodity exchange and consequently simple commodity production, which is the initial basis for the growth of capital from trade, have a very long history. During the Islamic Golden Age , Arabs promulgated capitalist economic policies such as free trade and banking. Their use of Indo-Arabic numerals facilitated bookkeeping . These innovations migrated to Europe through trade partners in cities such as Venice and Pisa. Italian mathematicians traveled
1552-528: A social system cannot be said to have existed before that date". England began a large-scale and integrative approach to mercantilism during the Elizabethan Era (1558–1603). A systematic and coherent explanation of balance of trade was made public through Thomas Mun 's argument England's Treasure by Forraign Trade, or the Balance of our Forraign Trade is The Rule of Our Treasure. It was written in
1649-416: Is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Some of Friedman's views were shared by John Maynard Keynes , who believed that capitalism was vital for freedom to survive and thrive. Freedom House , an American think-tank that conducts international research on, and advocates for, democracy, political freedom and human rights , has argued that "there
1746-649: Is a high and statistically significant correlation between the level of political freedom as measured by Freedom House and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey ". In Capital in the Twenty-First Century (2013), Thomas Piketty of the Paris School of Economics asserted that inequality is the inevitable consequence of economic growth in a capitalist economy and
1843-422: Is an economic system based on the private ownership of the means of production and their operation for profit . The defining characteristics of capitalism include private property, capital accumulation , competitive markets , price systems , recognition of property rights , self-interest , economic freedom , meritocracy , work ethic , consumer sovereignty , economic efficiency , profit motive ,
1940-588: Is governed by stable economic laws of its own. In the English language , the term "capitalism" first appears, according to the Oxford English Dictionary (OED), in 1854, in the novel The Newcomes by novelist William Makepeace Thackeray , where the word meant "having ownership of capital". Also according to the OED, Carl Adolph Douai , a German American socialist and abolitionist , used
2037-477: Is no competition. A monopoly occurs when a firm has exclusivity over a market. Hence, the firm can engage in rent seeking behaviors such as limiting output and raising prices because it has no fear of competition. Governments have implemented legislation for the purpose of preventing the creation of monopolies and cartels. In 1890, the Sherman Antitrust Act became the first legislation passed by
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#17328021065942134-422: Is no profit in making an article, it is a sign that the labor and capital devoted to its production are misdirected: the value of the resources that must be used up in making the article is greater than the value of the article itself". Socialist theorists note that, unlike mercantilists, capitalists accumulate their profits while expecting their profit rates to remain the same. This causes problems as earnings in
2231-588: Is to say the appropriation of capital by some to the exclusion of others") and Pierre-Joseph Proudhon in 1861 ("Economic and social regime in which capital, the source of income, does not generally belong to those who make it work through their labor"). Karl Marx frequently referred to the " capital " and to the "capitalist mode of production" in Das Kapital (1867). Marx did not use the form capitalism but instead used capital , capitalist and capitalist mode of production , which appear frequently. Due to
2328-458: The Chamber of Deputies , Senate , or parliamentary committees as part of the parliamentary control of government. The members of government are allowed to attend the works of Parliament and they must do so at the request of the presidents of the chambers. The prime minister and the members of his Cabinet must answer all questions or interpellations brought forward by deputies or senators as under
2425-667: The Romanian Revolution of 1989, when he was among the crowd occupying the National Television building, and broadcasting messages expressing revolutionary triumph. He became provisional prime minister after the overthrow of the Communist regime, and was confirmed in office in June 1990, three months after the country's first free election in 53 years. In 1974 Roman married Mioara Georgescu, with whom he has
2522-672: The Social Democratic Party and was elected in the General Council of Bucharest in 2020, but he resigned shortly afterwards. In 2022, Petre Roman emigrated to Switzerland, in order to become the president of the Swiss UMEF (university of applied sciences institute) . Petre Roman was born in Bucharest . His father, Valter Roman , born Ernst or Ernő Neuländer of Transylvanian Hungarian-Jewish descent,
2619-541: The Treaty of Trianon . The new constitution limited the powers of the King, vesting the executive power entirely in the prime minister and his Cabinet who now governed in the King's name after the latter appointed him. The new constitution also made the first steps towards a parliamentary control of the government, stipulating that either of the chambers may put ministers under accusation to stand trial. The current residence of
2716-763: The World Bank and the IMF ), large institutional investors and a well-funded banking system . A significant managerial class has emerged and decides on a significant proportion of investments and other decisions. A different future than that envisioned by Marx has started to emerge—explored and described by Anthony Crosland in the United Kingdom in his 1956 book The Future of Socialism and by John Kenneth Galbraith in North America in his 1958 book The Affluent Society , 90 years after Marx's research on
2813-477: The acting / ad interim Prime Minister of the provisional FSN government. At the 20 May 1990 elections –the first free elections held in the country in 53 years and colloquially known as the "Blindman's Sunday" ( Romanian : Duminica orbului )–he was elected as a deputy from Bucharest on the FSN list. Shortly afterwards, then president Iliescu designated him once more as prime minister on 20 June 1990. He
2910-410: The neoliberal global economy would have been impossible without the fall of communism . Harvard Kennedy School economist Dani Rodrik distinguishes between three historical variants of capitalism: The relationship between democracy and capitalism is a contentious area in theory and in popular political movements. The extension of adult-male suffrage in 19th-century Britain occurred along with
3007-717: The prime minister of the Government of Romania (Romanian: Prim-ministrul Guvernului României ), is the head of the Government of Romania . Initially, the office was styled President of the Council of Ministers (Romanian: Președintele Consiliului de Miniștri ), when the term "Government" included more than the Cabinet, and the Cabinet was called the Council of Ministers ( Romanian : Consiliul de Miniștri ). The title
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3104-479: The transatlantic cable , the radiotelephone , the steamship and railways allowed goods and information to move around the world to an unprecedented degree. In the United States, the term "capitalist" primarily referred to powerful businessmen until the 1920s due to widespread societal skepticism and criticism of capitalism and its most ardent supporters. Contemporary capitalist societies developed in
3201-422: The 1620s and published in 1664. European merchants , backed by state controls, subsidies and monopolies , made most of their profits by buying and selling goods. In the words of Francis Bacon , the purpose of mercantilism was "the opening and well-balancing of trade; the cherishing of manufacturers; the banishing of idleness; the repressing of waste and excess by sumptuary laws; the improvement and husbanding of
3298-464: The 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production , characterized by factory work and a complex division of labor . Through the process of globalization , capitalism spread across the world in the 19th and 20th centuries, especially before World War I and after the end of the Cold War. During the 19th century, capitalism
3395-643: The 18th-century decisively shaped globalization. After the First and Second Opium Wars (1839–60) and the completion of the British conquest of India by 1858, vast populations of Asia became consumers of European exports. Europeans colonized areas of sub-Saharan Africa and the Pacific islands. Colonisation by Europeans, notably of sub-Saharan Africa, yielded valuable natural resources such as rubber , diamonds and coal and helped fuel trade and investment between
3492-402: The 20th century, capitalism overcame a challenge by centrally-planned economies and is now the encompassing system worldwide, with the mixed economy as its dominant form in the industrialized Western world. Industrialization allowed cheap production of household items using economies of scale , while rapid population growth created sustained demand for commodities. The imperialism of
3589-439: The Council of Ministers, the office was first created in 1862 during the reign of Prince Alexandru Ioan Cuza . Cuza, unlike other monarchs of his time, was not a hereditary ruler. In 1859 he was elected Prince of Wallachia and Prince of Moldavia in two separate elections, thus de facto uniting the two principalities. By 1862, he had completely fused the two administrations into a single government with its capital at Bucharest ,
3686-527: The European imperial powers, their colonies and the United States: The inhabitant of London could order by telephone, sipping his morning tea, the various products of the whole earth, and reasonably expect their early delivery upon his doorstep. Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper. What an extraordinary episode in
3783-575: The Mediterranean talking to Arab traders and returned to popularize the use of Indo-Arabic numerals in Europe. The economic foundations of the feudal agricultural system began to shift substantially in 16th-century England as the manorial system had broken down and land began to become concentrated in the hands of fewer landlords with increasingly large estates. Instead of a serf -based system of labor, workers were increasingly employed as part of
3880-589: The National Integrity Agency with incompatibility, but restored to office in 2016 after the Court of Appeals overturned the ruling. He is also a member of the Club of Madrid , a group of more than 80 democratic former statesmen, which works to strengthen democratic governance and leadership. In the early 2020 he joined Ilan Laufer 's Social Liberal Platform, but he left it shortly afterwards. He joined
3977-655: The Statute expanding the Paris Convention ( Romanian : Statutul dezvoltător al Convenției de la Paris ). The new constitution created the Senate for serving Cuza's legislative purposes and vested the office of the Prince with full executive authority, while the prime minister remained his subordinate. Even though Cuza now had plenary powers, the office the prime minister remained influential, and Mihail Kogălniceanu ,
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4074-531: The United Kingdom (1979–1990). Public and political interest began shifting away from the so-called collectivist concerns of Keynes's managed capitalism to a focus on individual choice , called "remarketized capitalism". The end of the Cold War and the dissolution of the Soviet Union allowed for capitalism to become a truly global system in a way not seen since before World War I . The development of
4171-503: The United States Congress to limit monopolies. Wage labor, usually referred to as paid work, paid employment, or paid labor, refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labor power under a formal or informal employment contract . These transactions usually occur in a labor market where wages or salaries are market-determined . In exchange for
4268-543: The West from 1950 to the present and this type of system continues throughout the world—relevant examples started in the United States after the 1950s , France after the 1960s , Spain after the 1970s , Poland after 2015 , and others. At this stage most capitalist markets are considered developed and characterized by developed private and public markets for equity and debt, a high standard of living (as characterized by
4365-682: The balcony of the headquarters of the Central Committee against the Ceaușescu regime, the first public demonstration of its kind. On 22 December, he became a member of the Provisional Council of the National Salvation Front (CPFSN) established for the coordination of the revolutionary process and the establishment of democracy once the revolution had concluded. On 26 December 1989, Roman was appointed as
4462-529: The business of a third party by offering the most favourable terms". It was described by Adam Smith in The Wealth of Nations (1776) and later economists as allocating productive resources to their most highly valued uses and encouraging efficiency . Smith and other classical economists before Antoine Augustine Cournot were referring to price and non-price rivalry among producers to sell their goods on best terms by bidding of buyers, not necessarily to
4559-582: The cabinet membership are debated by the Parliament in a joint session of the Chamber of Deputies and the Senate. The proposal is accepted only if a majority of all deputies and senators approves. Once the vote of confidence is obtained, the candidate becomes the prime minister and all cabinet members become ministers. The prime minister, the ministers, and other members of the Government take an oath before
4656-479: The country a political government, Cuza created the office of prime minister and brought into power the leader of the Conservative faction, Barbu Catargiu . During the first years after its creation the office held considerable authority, being able to challenge the will of the Prince and together with a Legislative Assembly composed mainly of conservatives and reactionaries, Catargiu's conservative government
4753-578: The development of capitalism. Private property rights are not absolute, as in many countries the state has the power to seize private property, typically for public use, under the powers of eminent domain . In capitalist economics, market competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share and sales volume by varying the elements of the marketing mix : price, product, distribution and promotion. Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure
4850-754: The development of industrial capitalism and representative democracy became widespread at the same time as capitalism, leading capitalists to posit a causal or mutual relationship between them. However, according to some authors in the 20th-century, capitalism also accompanied a variety of political formations quite distinct from liberal democracies, including fascist regimes, absolute monarchies and single-party states . Democratic peace theory asserts that democracies seldom fight other democracies, but others suggest this may be because of political similarity or stability, rather than because they are "democratic" or "capitalist". Critics argue that though economic growth under capitalism has led to democracy, it may not do so in
4947-634: The distribution of goods and services are mainly determined by competition in goods and services markets. Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism , anarcho-capitalism , state capitalism , and welfare capitalism . Different forms of capitalism feature varying degrees of free markets , public ownership , obstacles to free competition, and state-sanctioned social policies . The degree of competition in markets and
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#17328021065945044-461: The economic progress of man was that age which came to an end in August 1914. From the 1870s to the early 1920s, the global financial system was mainly tied to the gold standard . The United Kingdom first formally adopted this standard in 1821. Soon to follow were Canada in 1853, Newfoundland in 1865, the United States and Germany ( de jure ) in 1873. New technologies, such as the telegraph ,
5141-399: The era of merchant capitalism and mercantilism as the origin of modern capitalism, although Karl Polanyi argued that the hallmark of capitalism is the establishment of generalized markets for what he called the "fictitious commodities", i.e. land, labor and money. Accordingly, he argued that "not until 1834 was a competitive labor market established in England, hence industrial capitalism as
5238-493: The expense of another state. During the Industrial Revolution , industrialists replaced merchants as a dominant factor in the capitalist system and effected the decline of the traditional handicraft skills of artisans , guilds and journeymen . Industrial capitalism marked the development of the factory system of manufacturing, characterized by a complex division of labor between and within work process and
5335-522: The following: In free market and laissez-faire forms of capitalism, markets are used most extensively with minimal or no regulation over the pricing mechanism. In mixed economies, which are almost universal today, markets continue to play a dominant role, but they are regulated to some extent by the state in order to correct market failures , promote social welfare , conserve natural resources , fund defense and public safety or other rationale. In state capitalist systems, markets are relied upon
5432-477: The future as authoritarian régimes have been able to manage economic growth using some of capitalism's competitive principles without making concessions to greater political freedom . Political scientists Torben Iversen and David Soskice see democracy and capitalism as mutually supportive. Robert Dahl argued in On Democracy that capitalism was beneficial for democracy because economic growth and
5529-592: The gazette. An emergency ordinance cannot modify a constitutional law, concern the functioning of the fundamental institutions, rights, or liberties. Unlike in the president-parliamentary semi-presidential systems , such as Russia , the Romanian prime minister is not a subordinate of the president , as he cannot outright dismiss the prime minister. The president can attend the government meetings debating upon matters of national interest with regard to foreign policy, country's defense, maintenance of public order, and, at
5626-417: The government, the prime minister is charged with directing the internal policy of the country and leads the public administration. In this regard, the government cooperates with other interested social actors. As with any other office of public authority, the office of prime minister is incompatible with any other office, except that of deputy or senator and is also incompatible with a professional position in
5723-475: The idea that if all participants focus on their own goals, society's well-being will be water under the bridge, Smith maintains that despite the concerns of intellectuals, "global trends will hardly be altered if they refrain from pursuing their personal ends." He insisted that the actions of a few participants cannot alter the course of society. Instead, Smith maintained that they should focus on personal progress instead and that this will result in overall growth to
5820-455: The invitation of the prime minister, in other instances as well. The president will always chair the government meetings he attends. In addition to his constitutional roles, the prime minister is, generally, the leader of the major party in the majority coalition that supports the government, although this is not always the case. The Government and the other bodies of administration must submit all information, reports or documents requested by
5917-696: The least corrupt, operates largely under a one-party rule. Furthermore, it does not vigorously defend freedom of expression as evidenced by its government-regulated press , and its penchant for upholding laws protecting ethnic and religious harmony, judicial dignity and personal reputation. The private (capitalist) sector in the People's Republic of China has grown exponentially and thrived since its inception, despite having an authoritarian government. Augusto Pinochet 's rule in Chile led to economic growth and high levels of inequality by using authoritarian means to create
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#17328021065946014-406: The least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital. Competition arises when more than one producer is trying to sell the same or similar products to the same buyers. Adherents of the capitalist theory believe that competition leads to innovation and more affordable prices. Monopolies or cartels can develop, especially if there
6111-403: The market mechanism is the only way of deciding what to produce and how to distribute the items without using coercion. Milton Friedman and Ronald Reagan also promoted this view. Friedman claimed that centralized economic operations are always accompanied by political repression . In his view, transactions in a market economy are voluntary and the wide diversity that voluntary activity permits
6208-428: The market, competing for the attention and exchange resources of buyers. Competition results from scarcity , as it is not possible to satisfy all conceivable human wants, and occurs as people try to meet the criteria being used to determine allocation. In the works of Adam Smith, the idea of capitalism is made possible through competition which creates growth. Although capitalism had not entered mainstream economics at
6305-434: The mid-17th century. "Capitalism" is derived from capital , which evolved from capitale , a late Latin word based on caput , meaning "head"—which is also the origin of " chattel " and " cattle " in the sense of movable property (only much later to refer only to livestock). Capitale emerged in the 12th to 13th centuries to refer to funds, stock of merchandise, sum of money or money carrying interest. By 1283, it
6402-489: The moment they are published in the Monitorul Oficial , the official gazette of the Romanian state. Such ordinances must be sent to the appropriate chamber of Parliament where they are discussed in an urgent manner and they are then sent to the official gazette. In case the noticed chamber does not discuss or approve said ordinance after 30 days of its arrival, the ordinance is officially adopted and published in
6499-424: The money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer. A wage laborer is a person whose primary means of income is from the selling of their labor in this way. The profit motive , in the theory of capitalism, is the desire to earn income in the form of profit. Stated differently,
6596-434: The new country bearing the name Romania, but the union was in danger of being dissolved after the end of his rule. A liberal, in favour of the two great reform projects envisioned by the liberals of the time (the electoral and agrarian reforms), Cuza did not publicly espouse his political preferences or position himself as the leader of a faction, preferring to keep the office of the Prince politically neutral. In order to give
6693-408: The office of prime minister. The president must consult with the party that has the majority in the Parliament or, if no such majority exists, with the parties represented in Parliament. Once designated, the candidate assembles a proposal for the governing program and the cabinet. The proposal must be approved by the Parliament within ten days, through a motion of no confidence . Both the program and
6790-475: The president, as stipulated under Article 82 of the Constitution. The Government as a whole and each of its members exercise their mandate from the date of the oath. The prime minister directs the actions of the government and co-ordinates the activities of its members. The prime minister submits to the Chamber of Deputies or the Senate reports and statements on Government policy, to be debated. As head of
6887-484: The previous stage of mercantilism, invested capital in the East India Companies and other colonies, seeking a return on investment . In the mid-18th century a group of economic theorists, led by David Hume (1711–1776) and Adam Smith (1723–1790), challenged fundamental mercantilist doctrines—such as the belief that the world's wealth remained constant and that a state could only increase its wealth at
6984-599: The previous stagnant system of custom and feudal obligation. The economic doctrine prevailing from the 16th to the 18th centuries is commonly called mercantilism . This period, the Age of Discovery , was associated with the geographic exploration of foreign lands by merchant traders, especially from England and the Low Countries . Mercantilism was a system of trade for profit, although commodities were still largely produced by non-capitalist methods. Most scholars consider
7081-530: The prime minister is the Victoria Palace. Initially designed to be headquarters of the Foreign Ministry, Victoria Palace was the headquarters of Foreign Ministry and Council of Ministers during the Communist period and became, in 1990, headquarters of the first government of post-communist Romania . The palace was declared a historical monument in 2004. Capitalism Capitalism
7178-412: The prime minister served at the pleasure of the Prince, the latter being able to appoint and dismiss the former at any time and for any reason. Nevertheless, the prime minister still held considerable influence. After World War I led to the creation of Greater Romania another constitution was drafted in 1923 to reflect the changes the Romanian state had undergone since the Treaty of Versailles and
7275-491: The reason for a business's existence is to turn a profit. The profit motive functions according to rational choice theory , or the theory that individuals tend to pursue what is in their own best interests. Accordingly, businesses seek to benefit themselves and/or their shareholders by maximizing profit. In capitalist theoretics, the profit motive is said to ensure that resources are being allocated efficiently. For instance, Austrian economist Henry Hazlitt explains: "If there
7372-435: The rest of society do not increase in the same proportion. The relationship between the state , its formal mechanisms, and capitalist societies has been debated in many fields of social and political theory, with active discussion since the 19th century. Hernando de Soto is a contemporary Peruvian economist who has argued that an important characteristic of capitalism is the functioning state protection of property rights in
7469-517: The resulting concentration of wealth can destabilize democratic societies and undermine the ideals of social justice upon which they are built. States with capitalistic economic systems have thrived under political regimes deemed to be authoritarian or oppressive. Singapore has a successful open market economy as a result of its competitive, business-friendly climate and robust rule of law. Nonetheless, it often comes under fire for its style of government which, though democratic and consistently one of
7566-613: The role of intervention and regulation , as well as the scope of state ownership, vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning . Capitalism in its modern form emerged from agrarianism in England , as well as mercantilist practices by European countries between
7663-486: The routine of work tasks; and eventually established the domination of the capitalist mode of production . Industrial Britain eventually abandoned the protectionist policy formerly prescribed by mercantilism. In the 19th century, Richard Cobden (1804–1865) and John Bright (1811–1889), who based their beliefs on the Manchester School , initiated a movement to lower tariffs . In the 1840s Britain adopted
7760-652: The soil; the regulation of prices...". After the period of the proto-industrialization , the British East India Company and the Dutch East India Company , after massive contributions from the Mughal Bengal , inaugurated an expansive era of commerce and trade. These companies were characterized by their colonial and expansionary powers given to them by nation-states. During this era, merchants, who had traded under
7857-440: The state of capitalism in 1867. The postwar boom ended in the late 1960s and early 1970s and the economic situation grew worse with the rise of stagflation . Monetarism , a modification of Keynesianism that is more compatible with laissez-faire analyses, gained increasing prominence in the capitalist world, especially under the years in office of Ronald Reagan in the United States (1981–1989) and of Margaret Thatcher in
7954-420: The term "capitalism" by many authors as "mainly rhetorical, functioning less as an actual concept than as a gesture toward the need for a concept". Scholars who are uncritical of capitalism rarely actually use the term "capitalism". Some doubt that the term "capitalism" possesses valid scientific dignity, and it is generally not discussed in mainstream economics , with economist Daron Acemoglu suggesting that
8051-418: The term "capitalism" should be abandoned entirely. Consequently, understanding of the concept of capitalism tends to be heavily influenced by opponents of capitalism and by the followers and critics of Karl Marx. Capitalism, in its modern form, can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance , in city-states like Florence . Capital has existed incipiently on
8148-525: The term "capitalism" while it was used twice in the more political interpretations of his work, primarily authored by his collaborator Friedrich Engels . In the 20th century, defenders of the capitalist system often replaced the term "capitalism" with phrases such as free enterprise and private enterprise and replaced "capitalist" with rentier and investor in reaction to the negative connotations associated with capitalism. In general, capitalism as an economic system and mode of production can be summarized by
8245-518: The term "private capitalism" in 1863. There is no universally agreed upon definition of capitalism; it is unclear whether or not capitalism characterizes an entire society, a specific type of social order, or crucial components or elements of a society. Societies officially founded in opposition to capitalism (such as the Soviet Union ) have sometimes been argued to actually exhibit characteristics of capitalism. Nancy Fraser describes usage of
8342-466: The term in his first work, What is Property? (1840), to refer to the owners of capital. Benjamin Disraeli used the term in his 1845 work Sybil . Alexander Hamilton used "capitalist" in his Report of Manufactures presented to the United States Congress in 1791. The initial use of the term "capitalism" in its modern sense is attributed to Louis Blanc in 1850 ("What I call 'capitalism' that
8439-406: The terms laid down in the statutes of Parliament. After such interpellations, the Chamber or the Senate can adopt a simple motion to express their position towards an issue of internal or external politics. Parliament can dismiss an outgoing prime minister and his cabinet by adopting a motion of no confidence against the government. In order for a motion to be initiated, it must be signed by at least
8536-423: The third prime minister, a liberal and former ally of Cuza often clashed with him. After Cuza's removal by coup d'état in 1866 by a coalition formed by both members of the liberal and conservative factions, the political forces of the time settled on two objectives: bringing a foreign prince from a European noble family on the country's throne and drafting a liberal constitution. The 1866 Constitution confirmed that
8633-414: The time of Smith, it is vital to the construction of his ideal society. One of the foundational blocks of capitalism is competition. Smith believed that a prosperous society is one where "everyone should be free to enter and leave the market and change trades as often as he pleases." He believed that the freedom to act in one's self-interest is essential for the success of a capitalist society. In response to
8730-410: The word being coined by socialist critics of capitalism, economist and historian Robert Hessen stated that the term "capitalism" itself is a term of disparagement and a misnomer for economic individualism . Bernard Harcourt agrees with the statement that the term is a misnomer, adding that it misleadingly suggests that there is such a thing as " capital " that inherently functions in certain ways and
8827-761: Was a socialist. He later self-identified as a liberal . He was also the president of the Senate from 1996 to 1999 and Minister of Foreign Affairs from 1999 to 2000. He was the leader of the Democratic Force (FD) party, which he founded after leaving the Democratic Party (PD) in 2003. He had previously served as an MP in the Lower Chamber , elected in 2012 , elected as a member of the National Liberal Party . He had been removed from his seat in 2015 after being charged by
8924-752: Was a veteran of the Spanish Civil War , a Comintern activist, and a prominent member of the Romanian Communist Party (PCR). His mother Hortensia Vallejo was a Spaniard exiled who would become director of the Spanish section of Radio Romania International. The couple married in Moscow , and he has several siblings. Roman attended the Petru Groza High School in his native city. He first rose to prominence during
9021-478: Was able to delay the adoption of several reforms. Frustrated by the government's opposition to reforms, and unable to work with an Assembly dominated by reactionary forces due to the censitary nature of the electoral system, Cuza launched a coup d'etat , followed by a constitutional referendum that replaced the Convention of Paris, an act that served as the constitution of the country, with his own version named
9118-640: Was formally confirmed in office by the newly elected legislature of the parliament on 28 June 1990 and his governing program was subsequently approved unanimously. He was the head of government of three cabinets between 1989 and 1991, as follows: Roman I cabinet , Roman II cabinet , and Roman III cabinet . He was succeeded by Theodor Stolojan in October 1991, after the September 1991 Mineriad. Prime Minister of Romania The prime minister of Romania ( Romanian : Prim-ministrul României ), officially
9215-560: Was largely unregulated by the state, but became more regulated in the post– World War II period through Keynesianism , followed by a return of more unregulated capitalism starting in the 1980s through neoliberalism . The existence of market economies has been observed under many forms of government and across a vast array of historical periods , geographical locations , and cultural contexts. The modern industrial capitalist societies that exist today developed in Western Europe as
9312-476: Was officially changed to Prime Minister by the 1965 Constitution of Romania during the communist regime . The current prime minister is Marcel Ciolacu of the Social Democratic Party (PSD), who has been serving since 15 June 2023 onwards as the head of government of the National Coalition for Romania (CNR). One of the roles of the president of the republic is to designate a candidate for
9409-763: Was used in the sense of the capital assets of a trading firm and was often interchanged with other words—wealth, money, funds, goods, assets, property and so on. The Hollantse ( German : holländische ) Mercurius uses "capitalists" in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, four years before its first recorded English usage by Arthur Young in his work Travels in France (1792). In his Principles of Political Economy and Taxation (1817), David Ricardo referred to "the capitalist" many times. English poet Samuel Taylor Coleridge used "capitalist" in his work Table Talk (1823). Pierre-Joseph Proudhon used
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