The capitalism economic system also known as the free market system where by the demand and supply of gods and services determines the production of goods and services by the capitalists. instead of the determination of the production of goods and services by a central system usually government agencies as seen in some other economic system like the command economic system.
Between 1300 and 1600 due to the transformation in global trade and the involvement of capitalists in trading and production of goods and services, the economic system that developed within this period was the Capitalism economic system
Capitalism is often referred to as a free market economy in its purest form. Embedded in these economic systems are political and social elements that influence the degree of purity of each system. Free markets are the natural state of trade. Unlike socialism, which requires government interference, capitalism can develop naturally. Therefore, capitalist societies tend to have smaller governments.
The competition between markets and businesses will create more productivity in the work place, allowing the rate of technological innovation to increase. This will cause the society to advance while the costs of goods and services will decrease.
Capitalist societies usually do not have large black markets. Therefore, capitalist societies tend to have less crime.
Capitalist nations promote free trade allowing more nations to cooperatively work together for more economic liberty. This will likely mitigate disputes between nations.
