Capitalism

Capitalism is economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

https://www.imf.org/external/pubs/ft/fandd/2015/06/basics.htm

Free markets.

Competing for limited resources.

Who is labelled Deviant in a capitalist society? (Spitzer, 1980) This is from a Social-Conflict analysis:

• Those who threaten private property
• Those who cannot or will not work
• People who resist authority
• People who challenge the status quo

Pillars of capitalism

Capitalism is founded on the following pillars:

• private property, which allows people to own tangible assets such as land and houses and intangible assets such as stocks and bonds;
• self-interest, through which people act in pursuit of their own good, without regard for sociopolitical pressure. Nonetheless, these uncoordinated individuals end up benefiting society as if, in the words of Smith’s 1776 Wealth of Nations, they were guided by an invisible hand;
• competition, through firms’ freedom to enter and exit markets, maximizes social welfare, that is, the joint welfare of both producers and consumers;
• a market mechanism that determines prices in a decentralized manner through interactions between buyers and sellers—prices, in return, allocate resources, which naturally seek the highest reward, not only for goods and services but for wages as well;
• freedom to choose with respect to consumption, production, and investment—dissatisfied customers can buy different products, investors can pursue more lucrative ventures, workers can leave their jobs for better pay; and
• limited role of government, to protect the rights of private citizens and maintain an orderly environment that facilitates proper functioning of markets.

The extent to which these pillars operate distinguishes various forms of capitalism.

• In free markets, also called laissez-faire economies, markets operate with little or no regulation
• In mixed economies, so called because of the blend of markets and government, markets play a dominant role, but are regulated to a greater extent by government to correct market failures, such as pollution and traffic congestion; promote social welfare; and for other reasons, such as defense and public safety.

Mixed capitalist economies predominate today.