What is a capitalist (market / free) economy? The capitalist system operates on the basis of the private ownership of the country's wealth
BY: KHALED
The Capitalist Economy
What is a capitalist (market / free) economy?
The capitalist system operates on the basis of the private ownership of the country’s wealth. The driving forces behind the capitalist system are based on private enterprise in the pursuit of making profit. It is a system in which individuals, who privately own resources, can use these in whatever manner they choose, as long as they do not violate the minimal legal restrictions.
The Characteristics of the Market Economy:
Looking broadly at the Capitalist System, it could be seen that there is a great amount of economic freedom granted to individuals concerning the ownership of resources as well as private property. Thus, one could question how does such an economic system with this amount of freedom not lead to confusion.
- The System of Private Property: In the Capitalist system, property is owned by individuals or groups of individuals, indicating that the state is not the predominant owner of the property. This private ownership is harnessed by the country’s legal system and police force, so that the individuals are free to do whatever they choose with their property, as long as they do not violate the property rights of others, determined by the government of the capitalist country such as the United Kingdom and the United States.