King Hezekiah (Little Upsilon)
| Saturday, October 18, 2008 - 05:53 am |
Capitalism is the economic system in which the means of production are owned by private persons, and operated for profit and where investments, distribution, income, production and pricing of goods and services are predominantly determined through the operation of a free market, rather than by central economic planning. Capitalism is usually considered to involve the right of individuals and corporations to trade, incorporate, employ workers, and use money provided by central banks, in goods, services (including finance), labor and land. In theory, production and distribution in a capitalist system are governed by the free market rather than state regulation, with state action confined to defining and enforcing the basic rules of the market though the state may provide a few basic public goods and infrastructure. Classic unrestrained capitalism is confined mostly to theory today, as "all of the capitalistic societies of the West have mixed economies" with interventionist state regulation, social programs and state ownership of some sectors.