What is Capitalism?

Capitalism is an economic system based on private property and private enterprises. In this system, all economic activities are not carried out by private individuals or private institutions, but most of them are profit-oriented. The means of production, such as raw materials, capital and other necessary instruments, belong to the individual to a great extent.

In capitalism, part of the economy may belong to the public. The Government may implement specific arrangements for specific sectors, such as public health and safety, competition and protection of the environment. However, such regulations often have negative consequences. The rules generally require practices that individuals and institutions will not perform under normal circumstances.

In capitalism, economic change is profit-oriented among private individuals or companies. Both private property and the idea of profit are in fact against the doctrines of many doctrines or religions that prevailed in the economy before capitalism. In the 1700s, however, some arguments were voiced, such as the freedom of people to maintain their personal interests, including economic interests. It is an example of such arguments as written in 1714 by Bernard Mandeville (1670 - 1733). The story of Mandeville is a story of an old hive who knows that they are selfish and that they have decided to live a life for reform and the welfare of others. But this reform is disaster. The expulsion of soldiers, servants, merchants and many other hives was taken because their services were no longer necessary. Actually Mandeville is trying to explain how the hive works better with old selfish and arrogant people.