What is capitalism?
The first principles of capitalism were outlined in Adam Smith's famous book The Wealth of Nations (published in 1776). While there are different types of capitalism (laissez-faire capitalism, welfare capitalism, crony capitalism, state capitalism) they mainly follow the same basic principles.
Characteristics of capitalism include:
Countries often have a "mixed economy" where capitalism reigns, but the government gives favors and imposes regulations on private companies. Examples of capitalist countries:
Characteristics of capitalism include:
- production is owned by individuals for profit, not the government
- innovation and entrepreneurship are encouraged
- wage labor
- competitive markets
- crosses borders- international trade and investments are encouraged for the accumulation of trade
Countries often have a "mixed economy" where capitalism reigns, but the government gives favors and imposes regulations on private companies. Examples of capitalist countries:
- United States of America
- Canada
- Sweden
- United Kingdom
- Australia
IN THE NEWS
An article about how capitalism has become "middle aged." While entrepreneurship should be popular in the US's economy, older firms are the ones that are stable and growing. The article analyzes the factors of productivity and mergers and acquisitions to explain why the economy is now discriminating against new, young companies.