Definitions of capitalism

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Capitalism is an economic system in which the capital is owned either by individuals or corporations. In such a system, the amount and type of development is typically limited by activities which support the accumulation and reinvestment of profits.

Capitalism might also be considered the free market approach to enterprise equity. A socialist economy can include free markets in consumer goods, or items that go into their manufacture (i.e. producer goods). But the crucial distinguishing feature between socialism and capitalism is the introduction of such a free market approach to shares of the ownership, i.e. the equity of profit-seeking decision-making units.

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