Final answer:
Capitalism, fundamental to industrialization, fostered wealth creation and social mobility but also exacerbated poverty, inequality, and worker exploitation.
Step-by-step explanation:
The rise of capitalism, which became the dominant economic system during the period of industrialization, is often linked to both substantial economic growth and serious social issues. The system enabled the creation of wealth, stimulated by ideas stemming from the Enlightenment, like laissez-faire economics, individual freedom, and the protection of property rights by a limited government.
However, it also led to the exacerbation of poverty and inequality. Capitalism encouraged wealth accumulation and capital investment, but often at the cost of the working class, which had to endure long hours, child labor, and hazardous work conditions, prompting the development of socialist ideas as a response.
As cities grew and industries demanded an increasing number of workers, social dynamics shifted towards acquiring wealth and upward mobility rather than sustaining family lands and traditions. Yet, capitalism also contributed to inequalities through mechanisms like intergenerational wealth and colonialism, which amplified global disparities. Colonialism, in particular, played a crucial role in shaping the world's economic structure, as it enabled the exploitation of resources and established a global proletariat class. Despite its capacity to generate immense wealth for certain segments of society, capitalism's impact has been deeply intertwined with social challenges that continue to affect the world today.
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