economic

There are a number of different elements in the
capitalist socio-economic system. Capitalism is defined as a social and economic
system that in which capital assets are mainly
owned and controlled by private persons, labor is
purchased for money wages, capital gains accrue
to private owners, and the price mechanism is
utilized to allocate capital goods between uses. The extent to which the price mechanism is used, the
degree of competitiveness, and government
intervention in markets distinguish exact forms of capitalism. There are different variations of capitalism which
have different relationships to markets and the
state. In free-market and laissez-faire forms of capitalism, markets are utilized most extensively
with minimal or no regulation over the pricing
mechanism. In interventionist and mixed economies, markets continue to play a dominant
role but are regulated to some extent by
government in order to correct market failures, promote social welfare, conserve natural resources, and fund defense and public safety. In state capitalist systems, markets are relied upon the least, with the state relying heavily on state-owned enterprises or indirect economic planning to accumulate capital. Capitalism and capitalist economics is generally
considered to be the opposite of socialism, which contrasts with all forms of capitalism in the
following ways: social ownership of the means of production, where returns on the means of
production accrue to society at large, and goods
and services are produced directly for their utility (as opposed to being produced by profit-seeking
businesses).

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economic elements

Aside

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