What is Capitalism?
Posted in Business Environment |
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Capitalism is followed by a large number of countries these days. The countries like USA that are following the capitalist system are leading the world in terms of the level of economic development.
Capitalism follows four basic principles
(i) The doctrine of self interest
(ii) Laisseze Faire policy
(iii) Theory of competitions
(iv) Profit Motive.
Free enterprise, competitions and private ownership of property are some of the features of capitalism. It is also known as the free enterprise economy. A policy of non-interference is adopted by the government in this system. Trade and industry are allowed to take their own course and the government is mainly concerned with the maintenance of law and order in the country.