Capital is money that can be generated more money through proper investment. By extension, capital is also the asset, which is available to invest or can be turned into money through trade such as house. The emergence of the institutions that enable to convert the assets into capital is an essential feature of the development of the capitalist society. Many small businesses started in this way. Although there are so many kinds of capitalism, such as merchant capitalism and financial capitalism, but the essential feature of capitalism is that the investment of capital in order to make more profits. (Fulcher, 2003) The Oxford Dictionaries defined capitalism as ‘an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.’ (Oxforddictionaries.com, 2014) In capitalist societies, waged labours play an important role, because they are both producers and consumers. The wage is the price of labour in the labour market, employers compete for labour; the money is bought and sold on currency market; the ownership of companies are traded on the stock market. These series of commerce lead to the competition among each sector. Market thus is unstable and changing all the time. (Fulcher, 2003) Each country is faced with different circumstances would act distinctly; therefore capitalism is transforming in their own directions. Capitalist industrialization caused the conflicts between each class, and the governments had different attitudes toward the problems. So this also causes the diversity of capitalism. All in all, capitalism transformed distinctly in each country because of the historical, political and so many issues. Each country has advantages resulted from their own economic and political policies. Among variety capitalist countries, Sweden’s vision of capitalism is most appealing to me. Sweden is a typical Social Democratic capitalist country. According to Scott Sutherland, ‘Sweden has among the EU’s lowest levels of national debt, low and stable inflation and a healthy banking system. But this was not always the case.’ (sweden.se, 2014) The reasons why Sweden is appealing me would be talk below.
This paragraph will introduce the significant events in Sweden, which caused the development of its capitalism and the ups or downs of its economy. In 1909, the strike resulted from an intense conflict, as each industry wanted to be in the dominated position through extending their organization. Swedish government constructed a highly centralized national employers’ association. The heavy class conflict created the peaceful and cooperated relations in early Sweden. The consolidated labour movement provided the basis for a long period of Social Democratic government from 1932 to 1976. All these did not mean that Social Democratic Sweden was becoming a non-capitalist society. In 1960s, workers became dissatisfied with the effects on their jobs and working conditions of dynamic capitalism. A submerged labour radicalism emerged for greater industrial and economic democracy. This stimulated the movement gradually of the ownership of industry from private capital to union-controlled funds. Serious damage was done to the relationship between workers and employers. In 1980s, the main organization of employers strove to decentralize wage bargaining. Finally in 1990s, the employers withdrew from the central wage bargaining. Corporatism therefore dismantled in Sweden. The economic crises came in early 1990s, GDP fell and unemployment soared. Electorate rejected the Social Democrats in 1991. After three years leading by ‘bourgeois’ government, the Social Democracy returned in 1994. Since then, the Swedish economic recovered. The 2002 OECD Economic Survey of Sweden concluded that’ overall, the economy is performing well’. (Fulcher, 2003)