Difference Between Similar Terms and Objects

Difference Between Capitalism and Feudalism

Capitalism vs Feudalism

In economics, there are two related models that have shaped standards of living and social classes today. These are Feudalism and Capitalism. In fact, renowned economists like Karl Marx, would recognize some correlation in the two constitutions such that in both structures, the power of the dominant class is based on the exploitation of the subordinate class. Despite the said similarity though, a great deal of differences exist between Feudalism and Capitalism.

Feudalism is a political and military system between a feudal aristocracy (a lord or liege), and his vassals. In its most classic sense, feudalism refers to the Medieval European political system composed of a set of reciprocal legal and military obligations among the warrior nobility, revolving around the three key concepts of lords, vassals, and fiefs. The group of feudalism can be seen in how these three elements fit together. The obligations and relations between lord, vassal and fief form the basis of feudalism. A lord granted land (a fief) to his vassals. In exchange for the fief, the vassal would provide military service to the lord. The land-holding relationships of feudalism revolved on the fief. There were thus different ‘levels’ of lordship and vassalage. In a typical feudal society, the ownership of all land was vested in the king. Servicing him was a hierarchy of nobles, the most important nobles holding land directly from the king, and the lesser from them, down to the seigneur who held a single manor. The political economy of the system was local and agricultural, and at its base was the manorial system. In the manorial system the peasants, laborers, or serfs, held the land they worked from the seigneur, who granted them use of the land and his protection in return for personal services and for dues. Throughout the medieval years, increase in communication and the concentration of power in the hands of monarchs in France, Spain, and England broke down the structure and facilitated the emergence of burgess class. The system broke down gradually and was eventually replaced by a more contemporary approach to resource management, which is Capitalism.

Capitalism is one of the most influential factors that define economic classes today. It is a structure in which the means of production and distribution are privately owned and operated for profit. Capitalists are conventionally composed of private entities that make and implement market decisions regarding supply, demand, price, distribution, and investments without much intervention from the public or government bodies. Profit, the major goal of any capitalist, is distributed to shareholders who invest in businesses. Salaries and wages, on the other hand, are paid to workers employed by such businesses. Capitalism, being an influential and flexible system of a mixed economy, drove the main means of industrialization throughout most of the world. There are different types of capitalism. These are anarcho-capitalism, corporate capitalism, crony capitalism, finance capitalism, laissez-faire capitalism, late capitalism, neo-capitalism, post-capitalism, state capitalism, state monopoly capitalism and technocapitalism. However varying, there is general agreement that capitalism encourages economic growth while further extending disparities in income and wealth. Capitalists believe that increasing GDP (per capita), the main unit in measuring wealth, is set to bring about improved standards of living, including better availability of food, housing, clothing, and health care. They deem that a capitalist economy holds better practical potentials in being able to raise the working class’ income through new professions or business ventures as compared to other types of economies. Unlike Feudalism though, it doesn’t maintain lords and serfs. Rather, it recognizes corporations and businesses to be the ruling body above the working class. What makes it distinct from Feudalism is that the subordinate class has freedom to demand from its employer and the employer hold limited authority, mostly professional in nature, over the subordinate.

Summary:

1) Feudalism involves aristocracy and vassals while capitalism is privately owned and operated for profit.

2) The obligations and relations between lord, vassal and fief form the basis of feudalism while profit is the main goal of capitalism.

3) Capitalism doesn’t maintain lords and serfs.

4) In capitalism, the subordinate class has the freedom to demand from the employer.


Search DifferenceBetween.net :

Custom Search



1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 5.00 out of 5)
Loading ... Loading ...


Email This Post Email This Post : If you like this article or our site. Please spread the word. Share it with your friends/family.



See more about : , ,

6 Comments

  1. dont u be tellin me capitalism is stronger than feudalism, who u tryin to fool

  2. Oh, take me feudalism! Oh! I like it!

  3. I really like and appreciate your article post.Really thank you! Really Cool.

  4. Interesting post. While laissez-faire capitalism is generally what people refer to as capitalism, it is correct that free market or laissez-faire capitalism does not define capitalism.

    While it is correct to say Chronny capitalism or state capitalism does in fact create massive wealth divides, it is funny how the laissez-faire capitalism seems to be credited with the downfalls. With the understanding of capitalism as being laissez-faire capitalism by most people (many college textbooks calling the synonomous), it is very disigenous to equate the social accepted definition of capitalism with the other forms.

    Government corruption and favorable treatment of corporations have caused every company that came close to a monopoly in the US by exclusive grants, legislation, and barriers to entry. This is state capitalism or chronny capitalism which is nearly completely opposed to laissez-faire capitalism.

    This article pretty much covers every economic system that is not a completely commanded economy and labels it capitalism. The most command economy in the world is North Korea where the average person is 6″ shorter than their S Korean counterparts due to malnutrition.

    In a nutshell, while factually acurate, this article is very misleading to a general reader.

  5. I would also like to thank you for this interesting comparison. Also I think one of the main differences is that with feudalism you were stuck in the same class. While in Capitalism, your class could change from generation to generation. The American Dream is what is sold to us and until that dream becomes more of a fantasy then I think capitalism is here to stay.

  6. It is intersting, right off the bat, Karl Marx is a “renowned economist.” and no mention anywhere of the likes of Milton Freidman or Ludwig von Mises. Karl Marx, the renowned economist, extolled a system which has brough misery and depredation to many hundreds of millions. And yet the article claims capitlism creats a wealth divide? the author’s bias is showing.

Leave a Response

Please note: comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.

Articles on DifferenceBetween.net are general information, and are not intended to substitute for professional advice. The information is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury. You agree that we have no liability for any damages.


Protected by Copyscape Plagiarism Finder