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What is the meaning of capitalism?

For the full article, see capitalism . capitalism, or free-market economy or free-enterprise system, Economic system in which most of the means of production are privately owned, and production is guided and income distributed largely through the operation of markets. Capitalism has been dominant in the Western world since the end of mercantilism.

How does capitalism work?

Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

What is capitalism based on?

The production of goods and services under capitalism is based on supply and demand in the general market, also known as the market economy. This is in contrast to a planned economy or a command economy, in which prices are set through central planning. The purest form of capitalism is free-market or laissez-faire capitalism.

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