Capitalism. What Is It?

Capitalism. What Is It?

Capitalism is an economic system in which land, capital goods, and other resources, are owned, operated and traded by private individuals or corporations for the purpose of profit. In a capitalist system, private control of these productive enterprises is protected by the rule of law. A capitalist legal system protects the exchange and distribution of capital between legal or private persons, which is driven by competition and profit-maximization,[1][2] and where investments, distribution, income, production and pricing of goods, commodities and services are determined by private decision in a market economy[3] rather than through central economic planning by the state. Human labor power is for sale in the market as one of the many commodities.[1] Pure capitalism, conceived as a self-regulating and self-adjusting economy which does not have significant economic intervention by government[4] has never existed in practice.[5] In a "capitalist mixed economy," the government owns some industries, exercises significant control over some others and also is a major employer.
In capitalist systems, goods and services, including those regarding the most basic necessities of life, are produced for profitable exchange.[1] Capitalism is originally defined as a mode of production, where it is characterized by predominantly private ownership of the means of production, distribution and exchange in a mainly market economy.[6][page # needed] According to Marxist analysis, a core requirement of a capitalist society is that a large portion of the population must not possess sources of self-sustainment that would allow them to be independent, and must instead be compelled, in order to survive, to sell their labor for a living wage.[7][8] Capitalism is usually considered to involve the right of individuals and businesses to trade, incorporate, and employ workers, in goods, services (including finance), labor and land.[3] In modern "capitalist states", legislative action is confined...

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