Capitalism is the social system based upon private ownership of the means .
of production which entails a completely uncontrolled and unregulated economy .
where all land is privately owned. But the separation of the state and the economy .
is not a primary, it is only an aspect of the premise that capitalism is based upon. .
This premise is individual rights. Capitalism is the only economic system .
centered upon the doctrine of individual rights. This means that capitalism accepts.
that each and every person is the owner of his own life, and has the right to live his .
life in any manner he chooses as long as he does not violate the rights of others. .
Throughout its history, but especially during its rise in the 19th century, .
capitalism has had several main traits. First, basic production facilities "land and .
capital "are privately owned. Capital in this sense means the buildings, machines, .
and other equipment used to produce goods and services that are ultimately .
consumed. Second, economic activity is organized and coordinated through the .
interaction of buyers and sellers in markets. Third, owners of land .
and capital as well as the workers they employ are free to pursue their own self-.
interests in seeking maximum gain from the use of their resources and labor in .
production. Consumers are free to spend their incomes in ways that they believe .
will yield the greatest satisfaction. This principle, called consumer sovereignty, .
reflects the idea that under capitalism producers will be forced by competition to .
use their resources in ways that will best satisfy the wants of consumers. Self-.
interest and the pursuit of gain lead them to do this. Fourth, under this system a .
minimum of government supervision is required; if competition is present, .
economic activity will be self-regulating. Government will be necessary only to .
protect society from foreign attack, uphold the rights of private property, and .
