Define capitalistic economy.
A capitalistic economic system is one characterised by free markets and the absence of government intervention in the economy. In practice, a capitalist economy will need some government intervention, primarily to protect private property. In the real world, many economies which are viewed to have a capitalist economic system may have government spending taking up 35% of GDP. This is because the government pays for welfare, health, education and national defense. However, the economy is still viewed as capitalistic because in the area of private enterprise, firms are free to decide what to produce and for whom.
Different types of capitalism
·Turbo capitalism – Free market capitalism with little government regulation.
· Responsible capitalism- Free markets but also a social welfare net.
A capitalistic economic system is one characterised by free markets and the absence of government intervention in the economy. In practice, a capitalist economy will need some government intervention, primarily to protect private property. In the real world, many economies which are viewed to have a capitalist economic system may have government spending taking up 35% of GDP. This is because the government pays for welfare, health, education and national defense. However, the economy is still viewed as capitalistic because in the area of private enterprise, firms are free to decide what to produce and for whom.
Different types of capitalism
·Turbo capitalism – Free market capitalism with little government regulation.
· Responsible capitalism- Free markets but also a social welfare net.
