Theories of capitalism

Theories of capitalism explore how economic systems based on private ownership and free markets operate. Classical capitalism emphasizes individual entrepreneurship and minimal government intervention, believing that competition leads to innovation and efficiency. Marxist theory critiques capitalism, arguing it creates class struggle and inequality. Keynesian economics suggests that government should play a role in stabilizing the economy during downturns. Other perspectives, like welfare capitalism, focus on balancing free markets with social welfare programs to support those in need. Overall, these theories examine the benefits and challenges of capitalism in promoting economic growth and addressing social issues.