On The Evolution Of Commerce And Commercial Capital In Modern British And Its Influence On Market Economy

There was a commercial revolution in Britain from the year 1500 to 1750, which resulted directly from the urban commercial development and the expansion of overseas trade brought by great geographical discovery with the expansion of urban commerce and overseas trade, commercialization permeated to the most obstinate areas, namely countryside and agriculture, and was completed in these areas due to the original industrialization and enclosure movement. As a result, the commercial revolution turned Britain into a business society —business activities became the theme of social economic life; businessmen were the most admirable people in society; enormous wealth of the society was possessed by businessmen; gaining capital profit became the principle of production; commercial capital became the absolutely dominating forms of capital. In that historical period, all economic characteristics could find the explanations in the absolute dominance of the commercial capital, such as development of commodity economy, government's protection of property right and agreement, and the formation and improvement of capital market and traffic network; all the above elements guaranteed the forming of market economy. Just because market economy was resulted from the commercial revolution and was brought up in a cicumstance where the commercial capital was dominating, it came into being in a special form, that is, mercantilism market economy. It was based on the theory of mercantilism, functioned with the country's intervention, and characterized in monopoly and activities of seeking renting. It wan just this kind of economy that established the fundation of Britain's Industrial Revolution during 1750—1850,put up the stage of the Industrial Revolution, and predicted a series of systems —such as the patent system, capital market system ,etc.—which played an important role in the course of Industrial Revolution. It is to necessary to understand that it is mercantilism market economy that layed the basis for Industrial Revolution —this point of view shows a true respect for history and at the same time avoids the tendency to exaggerate the contribution of market in the analysis of the causes of Industrial Revolution. In any case, the Industrial Revolution began by the revolution of technology, and after that numerous factories were built, concentration of industry's capital and inflation course are the evolution of the Industrial Revolution too. The factory produces the theme which becomes economic life, chasing industry's profit becomes the main means to obtain wealth, commerce serve for developing in industry already, commercial capital depend on industry capital already, this one industry capital ruling commercial capital era. Industry result that capital rule to realize freedom to trade, production freedom, finance free and limited appearance of government, this makes market economy of a free competition take shape, the Industrial Revolution causes the transition of market economy —Carry out the transition to the market economy of the free competition from the market economy of mercantilism.