Capitalism
Capitalism is an economic system whose motive for producing goods and services is to make a profit by individuals. Many people credit Adam Smith, and his classic, The Wealth of Nations, with forming the theories that led to modern capitalism. The government is supposed to be a separate entity from the economy in a capitalist state. The government … Keep Reading → may still provide basic services to those who need them, but this is not considered to be a commercial transaction. It is the market, not the government that determines how things are priced and when they are sold. Capitalism is often referred to as a market economy. Capitalism is a class based society. The owners are one class and the workers are another class. Capitalism is often compared with socialism. Socialism is based on a theoretical equitable distribution of goods and services.
