Capitalism is an economic system that is based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit. Economists and historians have taken different viewpoints on the analysis of capitalism. Economists usually emphasize the degree to which government does not have control over markets, and the importance of property rights. Most political economists emphasize private property as well.
In addition to power relations, wage labour, class, and the uniqueness of capitalism as a historical formation. In the 20th century defenders of the capitalist system often replaced the terms capitalism and capitalist with phrases such as free enterprise and private enterprise in reaction to the negative connotations sometimes associated with capitalism. Karl Marx gave the modern sense of capitalism. He considered capitalism to be a historically specific mode of manufacture in which social relations between individuals based on their connection with the process of productions.
There are many of different elements in the capitalist socio-economic system. It is distinct as a social and economic system where capital assets are mainly owned and controlled by private persons, and labour is bought for money wages. Capital gains to private owners, and the price mechanism is utilized to distribute capital goods between uses. Capitalism and capitalist economics is generally opposite of socialism.
There are two types of products and three inputs required for production. The productions are capital goods which include raw materials, tools, industrial machines, vehicles, and factories and consumer goods are televisions, cars, computers, houses etc. to be sold to others. Private enterprise is the system of raising, preserving and spending a set financial value in a specified market. Labour, goods and services, and financial are the main markets in a basic capitalistic economy. Labour markets make products and get paid for work by the goods and services market that might companies, firms, or corporations, etc. after then sells the products back to the labourers. However, both of the first two markets pay into and receive benefits from the financial market, which handles and regulates the actual money in the economic system. This includes banks, credit-unions, stock exchanges, etc.
Capitalism is the way of economic system where the buyers and the sellers have freedom. There is no discrimination if the labourers work hard. The workers can get high salary by their worth. However in many developed countries like the U.S. capitalism is now very popular. In such a system, individuals and firms have the right to own and use wealth to earn income and to sell and buying labour for wages with little or no government control. From
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