Economics and Business


What is capitalism?

The cornerstones of capitalism are private ownership of property (capital goods); property and capital create income for those who own the property or capital; individuals and firms openly compete with one another, with each seeking its own economic gain (so that competition determines prices, production, and distribution of goods); and participants in the system are profit-driven (in other words, earning a profit is the main goal). Capitalism is the antithesis of socialism, a theory by which government owns most, if not all, of a nation’s capital. There is no pure capitalist system; national governments become involved in the regulation of business to some degree. But the economy of the United States is highly capitalistic in nature, as are the economies of many other industrialized nations, including Great Britain.


This is a web preview of the "The Handy History Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App