--- title: "Meaning & Key Takeaway of: Capitalism began as a theory about how…" description: "\"“Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and..." image: "https://sms4smile.com/quotes/i/890/yuval-noah-harari-100_economic-crisis_capitalism-began-as-a-theory-about-how-t_313169.jpg" --- # Capitalism began as a theory about how the economy… ![“Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and promoted the idea that reinvesting profits in production leads to fast economic growth. But capitalism gradually became far more than just an…” quote by Yuval Noah Harari](https://sms4smile.com/quotes/i/890/yuval-noah-harari-100_economic-crisis_capitalism-began-as-a-theory-about-how-t_313169.jpg) [Download](https://sms4smile.com/quotes/i/890/yuval-noah-harari-100_economic-crisis_capitalism-began-as-a-theory-about-how-t_313169.jpg) [Open image](https://sms4smile.com/quotes/i/890/yuval-noah-harari-100_economic-crisis_capitalism-began-as-a-theory-about-how-t_313169.jpg) > ““Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and promoted the idea that reinvesting profits in production leads to fast economic growth. But capitalism gradually became far more than just an economic doctrine. It now encompasses an ethic – a set of teachings about how people should behave, educate their children and even think. Its principal tenet is that economic growth is the supreme good, or at least a proxy for the supreme good, because justice, freedom and even happiness all depend on economic growth. Ask a capitalist how to bring justice and political freedom to a place like Zimbabwe or Afghanistan, and you are likely to get a lecture on how economic affluence and a thriving middle class are essential for stable democratic institutions, and about the need therefore to inculcate Afghan tribesmen in the values of free enterprise, thrift and self-reliance. This new religion has had a decisive influence on the development of modern science, too. Scientific research is usually funded by either governments or private businesses. When capitalist governments and businesses consider investing in a particular scientific project, the first questions are usually ‘Will this project enable us to increase production and profits? Will it produce economic growth?’ A project that can’t clear these hurdles has little chance of finding a sponsor. No history of modern science can leave capitalism out of the picture. Conversely, the history of capitalism is unintelligible without taking science into account. Capitalism’s belief in perpetual economic growth flies in the face of almost everything we know about the universe. A society of wolves would be extremely foolish to believe that the supply of sheep would keep on growing indefinitely. The human economy has nevertheless managed to keep on growing throughout the modern era, thanks only to the fact that scientists come up with another discovery or gadget every few years – such as the continent of America, the internal combustion engine, or genetically engineered sheep. Banks and governments print money, but ultimately, it is the scientists who foot the bill. Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything depends on the people in the labs. New discoveries in fields such as biotechnology and nanotechnology could create entire new industries, whose profits could back the trillions of make-believe money that the banks and governments have created since 2008. If the labs do not fulfil these expectations before the bubble bursts, we are heading towards very rough times.”” [Yuval Noah Harari](https://sms4smile.com/quotes/author/yuval-noah-harari/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Capitalism evolved from a functional economic theory into a pervasive belief system that equates growth with moral good, influencing science, policy, and culture. **In simple terms:** Capitalism now acts like a religion that values growth above all. Key Takeaway Critically assess growth‑centric policies. Themes economics ethics science politics culture Mood reflective critical concerned Type philosophical sociopolitical When to use this quote - government budgeting - venture capital decisions - educational curricula - international aid programs - media narratives Key Concepts Growth imperative ideological diffusion science funding social engineering Questions to Reflect On - Is endless growth sustainable? - How can societies balance prosperity with planetary health? A Different Perspective Growth focus can ignore ecological limits and social equity. ★ ★ ★ ★ ★ No ratings yet [Capitalism](https://sms4smile.com/quotes/about/capitalism/) [Economic crisis](https://sms4smile.com/quotes/about/economic-crisis/) [Economic growth](https://sms4smile.com/quotes/about/economic-growth/) [Economics](https://sms4smile.com/quotes/about/economics/) [Free enterprise](https://sms4smile.com/quotes/about/free-enterprise/) [Middle class](https://sms4smile.com/quotes/about/middle-class/) [Modern era](https://sms4smile.com/quotes/about/modern-era/) [Money](https://sms4smile.com/quotes/about/money/) [Political freedom](https://sms4smile.com/quotes/about/political-freedom/) [Politics](https://sms4smile.com/quotes/about/politics/) [Rough Time](https://sms4smile.com/quotes/about/rough-time/) [Rough times](https://sms4smile.com/quotes/about/rough-times/) [Scientific research](https://sms4smile.com/quotes/about/scientific-research/) ## Related quotes > [“the decisive movement toward corporate capitalism began in 1895-1896.”](https://sms4smile.com/quotes/james-livingston/the-decisive-movement-toward-corporate-capitalism-began-in-1895-1896/) James Livingston > [I was just very interested in the American frontier and the growth of capitalism - those enormous fortunes that were being made, more often…](https://sms4smile.com/quotes/peter-matthiessen/i-was-just-very-interested-in-the-american-frontier-and-the-growth-of/) [Peter Matthiessen](https://sms4smile.com/quotes/author/peter-matthiessen/) > [“The way out of the trap was discovered only in the modern era, with the appearance of a new system based on trust in…](https://sms4smile.com/quotes/yuval-noah-harari/the-way-out-of-the-trap-was-discovered-only-in-the-modern-era-with/) [Yuval Noah Harari](https://sms4smile.com/quotes/author/yuval-noah-harari/) > [“The stress of farming had far-reaching consequences. 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You think Russia doesn’t run on greed?…](https://sms4smile.com/quotes/milton-friedman/well-first-of-all-tell-me-is-there-some-society-you-know-that-doesn-t/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [The history of capitalism has been so totally re-written that many people in the rich world do not perceive the historical double standards involved…](https://sms4smile.com/quotes/ha-joon-chang/the-history-of-capitalism-has-been-so-totally-re-written-that-many/) [Ha-Joon Chang](https://sms4smile.com/quotes/author/ha-joon-chang/) > [“The political perspective of this book, ironically, is the progeny of the progressive potential of capitalism as an historical system. The joint possibility of…](https://sms4smile.com/quotes/samuel-bowles/the-political-perspective-of-this-book-ironically-is-the-progeny-of/) Samuel Bowles ## More by Yuval Noah Harari > [“For similar reasons, archaic humans did not initiate any revolutions. 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There is no chance that gravity will cease to function tomorrow, even if people stop believing in…](https://sms4smile.com/quotes/yuval-noah-harari/a-natural-order-is-a-stable-order-there-is-no-chance-that-gravity/) [Yuval Noah Harari](https://sms4smile.com/quotes/author/yuval-noah-harari/) [Explore all 1,200 Yuval Noah Harari quotes ](https://sms4smile.com/quotes/author/yuval-noah-harari/) ## More Capitalism quotes > [Don't let's lose sight of what creates wealth. It is open markets, it is capitalism.](https://sms4smile.com/quotes/rupert-murdoch/don-t-let-s-lose-sight-of-what-creates-wealth-it-is-open-markets-it/) [Rupert Murdoch](https://sms4smile.com/quotes/author/rupert-murdoch/) > [Crony capitalism is essentially a condition in which... public officials are giving favours to people in the private sector in payment of political favours.](https://sms4smile.com/quotes/alan-greenspan/crony-capitalism-is-essentially-a-condition-in-which-public-officials/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [Philosopher is a dictator who modifies accepted standards with his thoughts.](https://sms4smile.com/quotes/ilkin-santak/philosopher-is-a-dictator-who-modifies-accepted-standards-with-his/) [Ilkin Santak](https://sms4smile.com/quotes/author/ilkin-santak/) > [There is only one party in the United States, the Property Party...and it has two right wings: Republican and Democrat. 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Harper > [The free market is ugly and stupid, like going to the mall; the unfree market is just as ugly and just as stupid, except…](https://sms4smile.com/quotes/anonymous/the-free-market-is-ugly-and-stupid-like-going-to-the-mall-the-unfree/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Capitalism, communism ... it's all garbage.](https://sms4smile.com/quotes/mstislav-rostropovich/capitalism-communism-it-s-all-garbage/) [Mstislav Rostropovich](https://sms4smile.com/quotes/author/mstislav-rostropovich/) > [There are no two countries with the same style of economic mechanism, with the same capitalism.](https://sms4smile.com/quotes/anatoly-chubais/there-are-no-two-countries-with-the-same-style-of-economic-mechanism/) [Anatoly Chubais](https://sms4smile.com/quotes/author/anatoly-chubais/) > [It is more than a little ironic that "capital accumulation" once a rather tendentious Marxian view of a supposed capitalist obsession, should have become…](https://sms4smile.com/quotes/robert-kuttner/it-is-more-than-a-little-ironic-that-capital-accumulation-once-a/) [Robert Kuttner](https://sms4smile.com/quotes/author/robert-kuttner/) > [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/) [John Adams](https://sms4smile.com/quotes/author/john-adams/) > [Socialism is humanity's second nature. All politicians do is turn human vice into votes.](https://sms4smile.com/quotes/ilana-mercer/socialism-is-humanity-s-second-nature-all-politicians-do-is-turn/) [Ilana Mercer](https://sms4smile.com/quotes/author/ilana-mercer/) > [“Scholars have long debated whether capital markets lead to appropriate levels of saving and investment for future generations.”](https://sms4smile.com/quotes/david-l-weimer/scholars-have-long-debated-whether-capital-markets-lead-to/) David L. Weimer > [“A car is one of the most interesting inventions, but driving is one of the most boring activities.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/a-car-is-one-of-the-most-interesting-inventions-but-driving-is-one-of/) [Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/) [Browse all 3,832 Capitalism quotes ](https://sms4smile.com/quotes/about/capitalism/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Capitalism began as a theory about how the economy functions. It was both descriptive and prescriptive – it offered an account of how money worked and promoted the idea that reinvesting profits in production leads to fast economic growth. But capitalism gradually became far more than just an economic doctrine. It now encompasses an ethic – a set of teachings about how people should behave, educate their children and even think. Its principal tenet is that economic growth is the supreme good, or at least a proxy for the supreme good, because justice, freedom and even happiness all depend on economic growth. Ask a capitalist how to bring justice and political freedom to a place like Zimbabwe or Afghanistan, and you are likely to get a lecture on how economic affluence and a thriving middle class are essential for stable democratic institutions, and about the need therefore to inculcate Afghan tribesmen in the values of free enterprise, thrift and self-reliance. This new religion has had a decisive influence on the development of modern science, too. Scientific research is usually funded by either governments or private businesses. When capitalist governments and businesses consider investing in a particular scientific project, the first questions are usually ‘Will this project enable us to increase production and profits? Will it produce economic growth?’ A project that can’t clear these hurdles has little chance of finding a sponsor. No history of modern science can leave capitalism out of the picture. Conversely, the history of capitalism is unintelligible without taking science into account. Capitalism’s belief in perpetual economic growth flies in the face of almost everything we know about the universe. A society of wolves would be extremely foolish to believe that the supply of sheep would keep on growing indefinitely. The human economy has nevertheless managed to keep on growing throughout the modern era, thanks only to the fact that scientists come up with another discovery or gadget every few years – such as the continent of America, the internal combustion engine, or genetically engineered sheep. Banks and governments print money, but ultimately, it is the scientists who foot the bill. Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything depends on the people in the labs. New discoveries in fields such as biotechnology and nanotechnology could create entire new industries, whose profits could back the trillions of make-believe money that the banks and governments have created since 2008. 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