Capitalism

In running the economy, a country needs an ideological basis so that all functions can run properly and regularly. Many ideologies are adopted by various countries in the world, including capitalism. Well, here’s a further explanation of this ideology.

Definition

Capitalism is an ideology that believes that capital owned by individuals or groups of people in society can realize human welfare. In its application in the economic system, it is possible for every citizen to control capital and business with the aim of making a profit.

One of the salient features of this system is the minimal state intervention. Indeed, the government can still apply regulations, for example, including the amount of the minimum wage. However, the government is not actively involved in national production planning.

In the 19th century, this concept began to emerge from a Scottish economist, Adam Smith. He coined the theory of “The invisible hand”, which believes that the balance of the market can be formed naturally based on supply and demand.

One of the things that benefit the capitalists is transacting in the free market. Due to the intense competition between sellers with the same product selling, those with capital tend to be able to create more innovative products. This makes their products much sought after by buyers. The higher the demand, the price of goods can be increased at will, moreover there is very minimal government intervention in regulation.

Furthermore, this understanding emphasizes individual rights in managing capital. This greatly affects the distribution of income. If you have a lot of capital and manage it successfully, a person can reap wealth and give it to the heirs when he dies. So, it is unlikely that wealth can be distributed to people outside the kinship circle.

Advantages and Disadvantages

Like any financial system, capitalism has its advantages and disadvantages. The first advantage is a more efficient and effective use of resources. This happens because the owner of the capital has set a target to get the maximum profit. In addition, people’s mindsets are more creative because they are faced with high competition. What’s more, unique products tend to be more in demand by consumers.

However, the implementation of this system also has disadvantages. Because access to capital can only be owned by certain circles, imperfect competition in a free market cannot be avoided. This is the root of the occurrence of market monopoly. Furthermore, this capitalist system causes entrepreneurs to only focus on money so that other problems such as the welfare of workers are neglected.

The next bad impact faced is the threat to the sustainability of natural resources. Because the owners of capital set a large profit target, exploitation of natural resources will be carried out on a large scale without thinking about the sustainability aspect.

Examples of Capitalism

Despite much opposition from some economists, in fact capitalism is still going on. One example of its application is in America, especially during the leadership of Donald Trump. The capitalists or owners of capital can do many ways to get big profits, including pressing the price of labor to the lowest level. Meanwhile, those who do not have access to capital are even worse off.

The election of Joe Biden as the new president certainly provides fresh air for economic improvement in America. Biden plans to increase the personal tax based on the amount of income he receives. Of course, income from these taxes can play a role in improving the welfare of those who are left behind.

Another example that can be seen directly is the presence of modern markets such as malls and supermarkets. Unconsciously, this modern market is slowly starting to displace the existence of traditional markets. The convenience and convenience of shopping makes consumers more interested in spending their money in modern markets, from shopping for clothes to kitchen contents.

Capitalists do have to spend big money when they want to build. However, the reciprocity of the benefits is doubled. Meanwhile, traders who sell in traditional markets can be eroded over time.

This is an explanation of what capitalism is and an example. Indeed, one of the advantages of this system is that it can achieve maximum profit, but only applies to those with capital. Welfare inequality also occurs because not all individuals can access capital and start businesses.

Classical Economics

In the world of economics, many theories are used and of course each has its own problems. So, you must know about classical economics and modern economics in order to adapt to current conditions.

Before proceeding to the discussion of the problems, let us first get acquainted with the understanding of classical and modern economics so that we can understand them more fully.

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Understanding Classical Economics

Classical economics was first popularized by Adam Smith, who said that a free market would form its own equilibrium. This means that the market balance does not need any intervention from certain parties.

In this way, supply creates its own demand so that aggregate production will generate sufficient income to cover all the resulting expenditures.

Characteristics of Classical Economics

The following are some of the characteristics of classical economics, among others.

1. The economy has a free enterprise system, meaning that it automatically returns to a position of equilibrium by itself.
2. In the occurrence of the system, the government does not intervene. The government’s role is to enforce the law and build economic supporting infrastructure.
3. Sellers and buyers automatically form a market price for these goods.
4. The wage rate is determined based on the law of demand and the law of supply of labor.

Classical Economics Problem

Based on the characteristics above, problems will arise in the economic system itself, including the following.

1. Production Problem

The first classic economic problem is the problem of producing a product. Producers (in this case the company) must know and predict exactly what goods and services needed by consumers are and in what quantities must be produced so that they are not too much or too little in the market.

This makes the production problem also think more about its production projections.

2. Distribution Problem

Second, handling and tackling distribution problems and ensuring that the distribution of goods to consumers can be of safe quality, on time and in the right quantity.

3. Economic Problems

And the problem that is the least accessible is when the product reaches the market, you have to know whether the product will be consumed properly and according to needs or even wasted because the market turns out to be no longer in need or even the price reaches the consumer’s hands is very high.

So, the problem is not only with producers because they are confused about production, but consumers must also be able to increase their income to be able to buy the goods that are sold and needed.

Understanding Modern Economy

In general, the modern economy is an economic system that must be able to meet unlimited human needs with limited resources, so the problem is very complex.

Modern Economic Problems

The following are some of the problems that arise in this super complex modern economy.

1. What goods and services are produced and in how much (What?)

The first modern economic problem must be closely related to the production of goods and services.

Here, producers must know to determine what goods and services must be produced with limited available resources, how large the amount of production and also at what price is right to sell.

All of this must be carefully considered because human wants and needs change rapidly, but the resources to buy them are very limited. If there is a miscalculation, producers will suffer losses, and even go bankrupt because their goods are piling up in vain.

Moreover, the era is digital and there are more and more similar products. Research is important to find out the needs in the market.

2. How to Produce The Goods (How?)

Second, after knowing the number and types of goods to be produced, the next problem is how to produce cheap and effective goods.

The available resources are very limited and producers must be able to determine the most efficient production technique for them to save production costs.

How many employees. What technique is used. In addition, producers must also be able to determine whether to produce with human power, or with the help of machines.

3. For Whom Are The Goods Produced? (For whom?)

Finally, who will enjoy the products that have been produced?

Basically, the benefits of goods and services produced are not only for consumers. But there are other parties who receive benefits.

Copenhagen

This year, 54 years after the fall of the International 12 foot dinghy off the IYRU-list, we shall witness an historical moment: the start of the official return of our dinghy on the international scene. In September, we are going to officially participate in the Vintage Yachting Games Copenhagen. For these games we shall use the now well established tradition of the Friendship Series of the 12 Foot Classical Wood Club, under which the slight variations of wooden International 12 ‘s as they race in the UK, Ireland, Germany, France, Italy, Turkey and Japan can all participate,  sometimes with some slight modifications of their rigging system. Rules are stated in the Copenhagen NOR. This web page contains further explanations and information only.

Vintage Yachting Games, Copenhagen 18-22 September 2018.

International 12 foot dinghy Class.

Notice Of Race

Registration

Organised by: Kongelig Dansk Yachtklub

The Vintage Yachting Games is a quadrennial competition event for ex-Olympic Yachting Classes: Europe, International 12, 2.4 Metre, O-Jolle, 12m2 Sharpie, Flying Dutchman, Yngling, Star, Soling, Dragon, 5.5 and 6 Metre. Her supervisory board consists of the Presidents/Chairmen of above classes. This year, 2018, they are held in Copenhagen, 18-22 September. The Vintage Yachting Games Organisation VYGO works with the international class organisations. Sailors represent their national class organisation. If none exists in their nation, they shall represent their international class organisation.

Copenhagen 18-22 September 2018.

For the International 12 we now have registrations from the UK, Ireland, France, Germany, Turkey and the Netherlands. We hope for participants from Japan. The well-known 12footCWC tradition will hold. So, as the Copenhagen NOR states, we race with wooden clinker built international 12’s, built according to the original design, and shaped, rigged and fitted accordingly. Vintage dinghies will generally be accepted, round wood should be solid, sails should be fixed to boom and lug (yard) such that no profitable in-race adjustment is possible. There should be no gear for profitable in-race adjustability of the mast foot. A boom marline is allowed but not required. On individual cases the International 12 class organisation shall decide with or without request.

We cherish the company of international 12 sailors from other continents! Our Japanese and Turkish International 12 friends and others are invited to apply for lending or hiring a local International 12 foot dinghy at box.

For details and questions: ASB4

Race Waters

Oeresund, E of Skovshoved and Hellerup Harbors just N of Copenhagen. The race areas are 25 miles (38 km) South of Helsingor (Hamlet’s Elsenore) where the Sund is just over 2 miles wide and the tides get blocked. The dinghies will be at Hellerup harbour (yes that has changed). The race areas start less then a mile off the coast. All winds between NW and S are land winds. Distance E to Sweden is 12 miles (19 km).

Harbour, Lodging and Camping

The dinghies will sail from Hellerup.
Campers, caravans, tents: in Hellerup harbor Harbour camping and parking inquiries and reservation.
Camping also on: Charlottenlund Fortet, a nearby historial sea fort.
The 2018 VYG International 12 dinner will be held Friday 21 September at the Hellerup Harbour Restaurant.

The entry fee covers besides the use of the regatta centers facilities, regattas, storage and craning, the admittance of the opening-, championship dinner, price giving- and closing ceremony.

Do the Dutch “Grou” International 12 class event the weekend before Copenhagen!

Most Dutch Copenhagen participants will compete in the Grou (North-Netherlands) International 12 class event the weekend before. This is a big Dutch International 12-event that not rarely has over 40 participants. The Dutch International 12 Copenhagen participants will probably leave in convoy after prize giving in Grou Sunday night, have lodging/camping reserved past Bremen, Monday proceed to the Puttgarten ferry (3 hrs), and after the ferry one and a half hour to Copenhagen, ETA Monday 1630. Relaxed. Ample time to settle, prepare, fire the cannons and raise the glass.

For French, UK and Irish Copenhagen-participants the Grou event is almost on the way! The International 12 class organisation 12footCWC filed a request to incidentally apply the so called Kaag-rule to the Grou event, which allows foreign International 12’s to participate. Non-Dutch International 12 sailors are welcome to join the Sunday evening (17 September 2018) International 12 Grou-Copenhagen convoi and reserve for lodging camping at our post-Bremen stay for the night.