Capitalism is an economic system in which the means of production are privately owned and operated for profit, rather than being owned and controlled by the state. In capitalism, the production and distribution of goods and services are determined by the laws of supply and demand, rather than through central planning. This means that prices are determined by the market, rather than by the government.
In a capitalist system, businesses and individuals compete with one another to sell their products and services to consumers. This competition drives innovation and efficiency, as businesses try to find ways to produce and sell their goods at a lower cost in order to increase their profits.
One key feature of capitalism is the profit motive, which means that businesses and individuals are motivated to make as much money as possible. This can lead to significant economic growth and wealth creation, but it can also lead to income inequality and social unrest if the wealth generated is not distributed fairly.
Overall, capitalism is characterized by a mix of private enterprise, competition, and profit-seeking behavior. It is one of the most widely-adopted economic systems in the world, but it has also been the subject of much debate and criticism.