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Capitalism

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A democratic republic practicing capitalism consists of relying on the many personal decisions regarding levels of supply, demand, price, distribution, and investments of privately produced and owned materials and services.[1] This democracy/capitalism model is seen as the most consistent way to govern in support for individual liberty. In defiance of a progressively burdensome and over planned economy that new liberals tend to agree with, capitalism allows individual empowerment or freedom from the local, state and federal government through accumulation of private property which develops a private sector of the economy.[2] Classic liberalism compliments capitalism, both revering limited and representative federal regulation upon the voluntary trade within free markets that is necessary for honest operation.

Expressions

Free market Capitalism

Free market capitalism is a system of economics that minimizes government involvement in the economy, and maximizes the role of the market. Government regulations, such as tariffs, are thought to generally distort the market. Private corporations make the decisions for the most part, and usually set prices.[3]

Laissez-faire Capitalism

Laissez-faire economist Adam Smith

Laissez-faire (French for "let us do" or "let us work") is an economic doctrine that eschews government involvement in any affairs other than the bare minimum needed, such as to stop stealing of property. It was advocated by economist Adam Smith, who came up with the idea of the "invisible hand" of the free market.

Thatcherism

Thatcherism is the laissez-faire economics policies of Margaret Thatcher, British prime minister from 1979 to 1990. It placed a higher priority of controlling inflation rather than unemployment. It has similarities to supply-side economics, where government runs the economy through tax cuts and privatization, rather than Keynesian economics, which government spends money to stimulate the economy.

Crony capitalism

Crony capitalism is where business rely closely on government officials.

References

  1. "capitalism." Merriam-Webster Online Dictionary. 2010. Merriam-Webster Online. 7 July 2010 <http://www.merriam-webster.com/dictionary/capitalism>
  2. Capitalism By Economy Professor
  3. Free market capitalism-The Financial Dictionary