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Capitalism is based on the private ownership of the means of production-the farms, factories and service industries. Capitalists make profits on their investments,
instead of selling their labor power like the working class.
In Capitalism, all factors of production are privately owned and government of
the nation does not interfere in the economic activities of a country. Profit earning is the
sole objective for starting a business. Labour like other factors of production, is also a
saleable commodity. Capitalism economy is also known as Free Market Economy as all
(producers, sellers, buyers, employers, employees, consumers etc.) are free to enter into
any occupation or agreement.
Types of Capitalism:
I have found four types of capitalism which are stated below
Social-Democratic Capitalism:
Democratic capitalism, also known as
capitalist democracy or capitalistic democracy, is a political, economic, and social
system and ideology based on a tripartite arrangement of a market-based economy based
Corporate Capitalism:
Corporate capitalism is a term used in social science and economics to describe a
capitalist marketplace characterized by hierarchical, bureaucratic corporations, which are
legally required to pursue profit.
In the developed world, corporations dominate the marketplace, comprising 50 percent or
more of all businesses. Those businesses which are not corporations contain the same
bureaucratic structure of corporations, but there is usually a sole owner or group of
owners who are liable to bankruptcy and criminal charges relating to their business.
Corporations have limited liability and remain less regulated and accountable than sole
proprietorships.
Corporations are usually called public entities when parts of their business can be bought
in the form of shares on the stock market. This is done as a way of raising capital to
finance the investments of the corporation. The shareholders appoint the executives of the
corporation, who are the ones running the corporation via a hierarchical chain of power,
where the bulk of investor decisions are made at the top, and have effects on those
beneath them.
State-Led Capitalism: