Capitalism is an economic system that is based on merchant profits originating from private enterprises. The state does not intervene in capitalist dynamics.
It can refer to goods or services of any kind as long as they are private property, so the profits are intended for savings or increasing the wealth of their owners.
This must be in line with a market study that, in turn, analyzes supply and demand to achieve an effective market.
Capitalism gives rise to liberalism, which is a monetary execution dynamic that allows each individual to be the owner and servant of activities that result in monetary gains for their livelihood.
Examples of capitalism
- Industrial capitalism: It is based on the growth of technology and politics being linked to the entrepreneurial or cosmopolitan development of a geographic area. It sets aside artisanal or historical aspects.
- Financial capitalism: It relates the state, society, and the market with economic gains. It unites these areas as a strategy for mercantile domination.
- Social capitalism: Community production is good for capitalism as long as the distribution of profits is in accordance with the owners of each private enterprise, and this, in turn, can generate industrialization in the nation.
- Global capitalism: Integrates all known areas that allow social evolution and place a nation above others according to its gains or social, political, cultural, sports, educational, and technological developments.
- Commercial capitalism: It is the beginning of capitalism, as it is based on small, medium, or large trade as long as it is privately owned, and the accumulation of profits goes to the owner, not the state.
- Competitive capitalism: Competition is among the fundamentals of capitalism, as this initiates market supply and demand.
- State capitalism: In the practice of capitalism, the state should not have a prominent role. The government can intervene in legal permits for the functionality of the business or the proposal of prices, thus evaluating international competition.
- Small capitalism: It is obtained through small properties that are starting their journey in the market, such as private shops within an economic environment.
- Medium capitalism: These are establishments with a determined period of existence, privately owned, and useful for the community or area where they are located, for example: hardware stores, hair salons, and/or restaurants.
- Big capitalism: Companies with many years of existence in the market that allow them to survive privately and without direct state intervention. Transnationals. Distributors. Industries.