Capitalism means the complete separation of economy and state. 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, which are individual rights. Capitalism is the only politico-economic system based on the doctrine of individual rights. This means that capitalism recognizes 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 (Shadab 1). .
Capitalism has a main philosophical view. "Capitalism is implicitly based upon a world view which upholds that man's mind is competent in dealing with reality, that it is morally good for each person to strive for his own happiness, and that the only proper social arrangement for men to live under is one in which the initiation of physical force is banished" (Shadab 2). This is the ideological basis upon which the United States was founded. The importance of recognizing the philosophy upon which capitalism rests upon lies in the fact that no social system can be properly understood or defended apart from its broader philosophical framework (2). .
Capitalism is politically superior to socialism in many ways. In a capitalist society, the role of the government is very limited. "The only purpose of the government would be to protect its citizens from force or fraud" (Shadab 2). The protection from force, which is the protection of individual rights, would be achieved through a number of ways: (1) the use of a police force to protect the rights of citizens at home; (2) a military to protect the rights of citizens from foreign aggression; and (3) a court system to enforce contracts and settle disputes between citizens.