What is Capitalism?
Capitalism is an economic and political system in which a county's trade and industry are controlled by private owners for profit, rather than by state.
Adam Smith's Capitatlism
Adam Smith's capitialism was the best economic philosphy, attracting many people because:
- Capitalism has political freedom
- Capitalism has a lack of government intervention
- In capitalism production is owned by private firms
- In capitalism goods and services are distributed according to price merchanism
Advantages Capitalism has Over Other Philosophies:
- Capitalism is more efficient
- Capitalism increases economic growth
- Capitalism increases wealth
- Capitalism enables a higher standard of living
Places that Practice Capitalism:
- South Africa