Capitalism
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The Capitalism System
Capitalism is the driving force behind the world's economy. Most people have heard of capitalism but few know the meaning and history of this theory. The purpose of this paper is to give you insight about the history and development of business, where the capitalist beliefs originated, and how they have changed over the years.
Capitalism may also be referred to as a free enterprise or private enterprise system. The two main assumptions of capitalism are that humans are rational, meaning they seek their own economic interests, and there should be a limited role of government. Four elements of capitalism stem from these two assumptions including private property rights, economic incentive, a free market system, and political and economic freedom. Private property rights refer to the right to use one's assets. Economic incentive refers to profits, which can be used for accumulating private property. A free market system means the exchange of goods, services, or labor without outside regulation. Economic and political freedom means the government power must be limited and must be dispersed among the people...