What are the principles of capitalism?

Some of the most important aspects of a capitalist system are private property, private control of the factors of production, accumulation of capital, and competition. Put simply, a capitalist system is controlled by market forces, while a communist system is controlled by the government.

Individual capitalists are typically wealthy people who have a large amount of capital (money or other financial assets) invested in business, and who benefit from the system of capitalism by making increased profits and thereby adding to their wealth.

Democratic socialism is defined as having a socialist economy in which the means of production are socially and collectively owned or controlled, alongside a democratic political system of government. Democratic socialists reject most self-described socialist states and Marxism–Leninism.

These capitalist economies operate on the pillars of private property, supply, and demand, competition, freedom, and incentive.

The top 10 most capitalistic countries are:

• Hong Kong.
• Singapore.
• New Zealand.
• Switzerland.
• Australia.
• Ireland.
• United Kingdom.
• Canada.

Hong Kong

Post-communism is the period of political and economic transformation or “transition” in former communist states located in parts of Europe and Asia in which new governments aimed to create free market-oriented capitalist economies.

Capitalism and socialism are two different political, economic, and social systems blended together by countries around the world. Sweden is often considered a strong example of a socialist society, while the United States is usually considered a prime example of a capitalist country.

Princeton’s WordNet. socialism(noun) a political theory advocating state ownership of industry. Antonyms: capitalist economy, capitalism.

In a capitalist economy, successes and failures (profits) of individuals and companies determine the allocation of resources. In a communist command economy, the government determines resource allocation. These decisions are typically made based on macro-economic and/or political considerations.

Capitalism is based on individual initiative and favors market mechanisms over government intervention, while socialism is based on government planning and limitations on private control of resources.