What is Capitalism
Capitalism is that part of economic systems where productions are owned and managed by private individuals and institutions. Or it is economic individualism wherein the individuals are the one to decide what and how much to produced and distributed. They are at liberty to use any technique of production and produce anything they like. In this economic system, State is to take care of only internal and external security of the country. Normally the activities related to Defence, Police, Administration and Courts of Justice are controlled by the government.
A private enterprise economy characterized by the existence of business fluctuations and considerable unemployment. In capitalism there will be considerable ups and downs – swings of the business cycle with their inevitable repercussions on the people.
Types of Capitalism
There are two types of capitalism
- Classical Capitalism
- Monopoly Capitalism