Capitalism is an economic system where means of production are privately owned. Goods and services are produced for profit in the free market. Capitalism works around "agreed self-interest" where people work voluntarily in exchange for wages. It was believed that this would be mutually beneficial to society. Industrial Capitalism became a social phenomenon, as the British government had to promote the idea of Capitalism to the population. Capitalists believed that the government should not interfere with the market, as efficiently using capital would come naturally.
Capitalist economies are mostly free market economies, meaning that factors of production are mainly held by firms. There are no longer any free market economies, as current economies are mixed economies. Mixed economies have some government interference (e.g. labour laws).
What is Capitalism?: Capitalism is a social and economic system based on the belief that human desires and supply and demand will lead to resources to be used in the most efficient way.
Capitalist economies are mostly free market economies, meaning that factors of production are mainly held by firms. There are no longer any free market economies, as current economies are mixed economies. Mixed economies have some government interference (e.g. labour laws).
What is Capitalism?: Capitalism is a social and economic system based on the belief that human desires and supply and demand will lead to resources to be used in the most efficient way.