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• Capitalism is an economic philosophy in which the production and distribution of goods, and the providing and cost of services are dictated by the free market. The state's role in the economy is not to intervene in the free market. Governments who follow this philosophy typically provide less services to their citizens than other countries. This causes the citizens to be dependent on the private sector to receive the services not provided by the state.

• Fast Facts

  1. The land, labor, and capital are owned, operated, and traded for the purpose of generating profits http://en.wikipedia.org/wiki/Capitalism
  2. The hands off approach by the government when it comes to the free market is referred to as laissez-faire[les-ey fair] http://en.wikipedia.org/wiki/Laissez-fai...
  3. The term capitalism was first introduced in the mid-19th century by Karl Marx, the founder of communism. http://encarta.msn.com/encyclopedia_7615...

• Evolution of Capitalism

  Capitalism has its beginnings in Europe in the 13th century.

  From the 15th to the 18th century, capitalism developed into mercantilism, which rested on private property and the use of markets for the basic organization of economic activity.

  In the 18th century, the ideas of Adam Smith provide the ideological background for the Industrial Revolution.

  Based on the work of John Maynard Keynes, many countries adopt a mix-economic structure as a result of the Great Depression.

  As the result of advances in telecommunications, capitalism has flourished throughout the world in recent decades through Globalization.

• Related Pages

  • Socialism
    
  • Fascism
    
  • Nationalism
    
  • Liberalism
    

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