Capitalist theory

Capitalist theory centers on an economic system where private individuals or businesses own and control resources and production. It emphasizes voluntary trade, competition, and profit motive as drivers of economic activity. Prices and wages are determined by supply and demand, encouraging innovation and efficiency. Capitalist theory advocates for minimal government interference, believing that free markets lead to optimal resource allocation and economic growth. This system incentivizes investment and entrepreneurship, aiming to improve living standards and wealth generation through individual enterprise within a framework of private property rights.