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What are the characteristics of pure capitalism?

Finance

What are the characteristics of pure capitalism?

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Liberty and freedom are core principles of the U.S. political and economic system. The U.S. employs a free-market, capitalist system. Free markets are noted by fewer regulations and a wide range of freedom for those in the market. Capitalism is a free market system that allows and promotes the individual building and owning of wealth. In its purest form, capitalism is denoted by these characteristics:

  • Private Property drives capitalism and is encouraged for all participants.
  • The free market's supply and demand determine the price of goods and the cost of production.
  • The consumer is king. Through their buying power, consumers dictate the type and amount of good made and sold.
  • Profits are also king. The hope of making money or making more money drives investors into the system, thus promoting growth.
  • No regulations. Pure capitalism would have no regulations, but in the U.S. system, regulations protect the free market and the consumer.