USA HISTORY

Detailed explanation-1: -The essential feature of capitalism is the motive to make a profit. As Adam Smith, the 18th century philosopher and father of modern economics, said: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”

Detailed explanation-2: -Some of the most important aspects of a capitalist system are private property, private control of the factors of production, accumulation of capital, and competition. Put simply, capitalist systems are controlled by market forces where capital goods are owned by businesses and private individuals.

Detailed explanation-3: -In a capitalist economy, the role of government is very limited. The main functions of government, as given by Adam Smith, are to maintain law and order in a country, make national defense stronger, and regulate money supply. According to Smith, the market system administers various economic functions.

Detailed explanation-4: -The capitalist government definition is a government which upholds the private property rights necessary for capitalism and the legal framework for functioning markets. Strong laws governing contracts, inheritance, fiduciary duties and trading are central to capitalist governments.