Question

Explain in a paragraph the connection between capitalism, capital, and free enterprise

Answer 1

Capitalism is built around the pursuit and protection of one's private property.  In a purely capitalistic system, there would be no income redistribution by taxing those who succeed at business in order to give aid to those who aren't as successful.  A capitalist system also wants trade and commerce to be able to operate without restrictions, as a free enterprise in a free market system.  Capitalists do not want to be burdened by heavy government regulations or controls on where and how they can do business.  Capitalism's intent is to reward those who use their capital (money, property) to invest in building their businesses further and expanding their entrepreneurial enterprises.  It is believed that as they do so, they will enrich the overall economy of the nation and opportunities for others who work in the enterprises they create.