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==Overview==
==Overview==
One self-regulating feature of capitalism is competition, which helps maintain fair market value for goods and services. However, ''unrestrained'' or ''pure'' capitalism always create a positive feedback loop in which a small number of individual accumulations of capital grow ever larger, eventually becoming so few as to limit effective competition, thus ceasing to strictly be free-market capitalism which has happened in the global economy. In this regard, pure capitalism is unstable. Modern political systems have developed regulation mechanisms in an attempt to render capitalism more stable, including anti-trust regulation, trade tariffs, etc.
One self-regulating feature of capitalism is competition, which helps maintain fair market value for goods and services. However, ''unrestrained'' or ''pure'' capitalism may sometimes create a positive feedback loop in which a small number of individual accumulations of capital grow ever larger, eventually becoming so few as to limit effective competition, thus ceasing to strictly be free-market capitalism. In this regard, pure capitalism is unstable. Modern political systems have developed regulation mechanisms in an attempt to render capitalism more stable, including anti-trust regulation, trade tariffs, etc.
Since the fall of [[communism]], and the advent of information technology, capitalism is becoming increasingly widespread.
Since the fall of [[communism]], and the advent of information technology, capitalism is becoming increasingly widespread.
{{Cquote|Whatever a person saves from his [[revenue]] he adds to his [[capital]], and either employs it himself in maintaining an additional number of productive hands, or enables some other person to do so, by lending it to him for an interest, that is, for a share of the profits. As the capital of an individual can be increased only by what he saves from his annual revenue or his annual gains, so the capital of a society, which is the same with that of all the individuals who compose it, can be increased only in the same manner. <ref>Adam Smith, ''An Inquiry into the Nature and Causes of the Wealth of Nations'', [http://www.econlib.org/library/Smith/smWN.html Book II, Chapter 3, Paragraph 15,] ''Of the Accumulation of Capital, or of Productive and Unproductive Labour'', First Edition 1776.</ref>}}
{{Cquote|Whatever a person saves from his [[revenue]] he adds to his [[capital]], and either employs it himself in maintaining an additional number of productive hands, or enables some other person to do so, by lending it to him for an interest, that is, for a share of the profits. As the capital of an individual can be increased only by what he saves from his annual revenue or his annual gains, so the capital of a society, which is the same with that of all the individuals who compose it, can be increased only in the same manner. <ref>Adam Smith, ''An Inquiry into the Nature and Causes of the Wealth of Nations'', [http://www.econlib.org/library/Smith/smWN.html Book II, Chapter 3, Paragraph 15,] ''Of the Accumulation of Capital, or of Productive and Unproductive Labour'', First Edition 1776.</ref>}}
Smith goes on to describe how the productive powers of labor employed by the owner of a capital allow laborers to reproduce with a profit the value of their maintenance, over and above their own consumption, which then allows for an additional set of hands to be employed. <ref>Adam Smith, ''Wealth of Nations'', Book II, Chapter 3, Paragraph 22.</ref> Smith observes labor is the original purchase price for all the wealth of the world,
[[Image:Eco Pillars.jpg|right|400px|thumbnail|The [[free enterprise]] system in [[United States of America|America]] before [[liberals]], [[Republican in name only|rinos]], and/or members of the [[progressive movement]], such as President [[Barack Obama]], eroded America's [[economics|economic]] freedom and prosperity. Recently, President Barack Obama [[Obamunism|created massive Federal government debt.]] ]]
{{Cquote|The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it. What every thing is really worth to the man who has acquired it, and who wants to dispose of it or exchange it for something else, is the toil and trouble which it can save to himself, and which it can impose upon other people. What is bought with money or with goods is purchased by labour, <sup>2</sup><ref>'Everything in the world is purchased by labour.'—Hume, 'Of Commerce,' in Political Discourses, 1752, p. 12</ref> as much as what we acquire by the toil of our own body. That money or those goods indeed save us this toil. They contain the value of a certain quantity of labour which we exchange for what is supposed at the time to contain the value of an equal quantity. Labour was the first price, the original purchase-money that was paid for all things. It was not by gold or by silver, but by labour, that all the wealth of the world was originally purchased; and its value, to those who possess it, and who want to exchange it for some new productions, is precisely equal to the quantity of labour which it can enable them to purchase or command. <ref>Adam Smith, ''An Inquiry into the Nature and Causes of the Wealth of Nations'', [http://www.econlib.org/library/Smith/smWN.html Book I, Chapter 5, Paragraph 2,] ''Of the Real and Nominal Price of Commodities'', First Edition 1776.</ref>}}
Real wealth consists not in money, but in the things money will exchange for,
Real wealth consists not in money, but in the things money will exchange for,
For example, [[Venezuela]], while not a perfect country before [[Hugo Chavez]], had freedom and wealth unprecedented in its history. As Chavez has nationalized industries, he has also centralized power for himself, becoming a dictator.
For example, [[Venezuela]], while not a perfect country before [[Hugo Chavez]], had freedom and wealth unprecedented in its history. As Chavez has nationalized industries, he has also centralized power for himself, becoming a dictator.
Capitalist societies also generally have higher standards of living compared to their non-capitalist counterparts in terms of per capita GDP, education, healthcare, and poverty rates. [[China]], for instance, has been growing extremely prosperous since it began opening its economy to capitalism in the 1980s. These are not equal comparatives. Communist Cuba, when compared to similar neighboring countries such as Haiti, has a much higher standard of living.
Capitalist societies also generally have higher standards of living compared to their non-capitalist counterparts in terms of per capita GDP, education, healthcare, and poverty rates. [[China]], for instance, has been growing extremely prosperous since it began opening its economy to capitalism in the 1980s.
However, capitalist societies also have seen progressively larger gaps between the upper and middle classes develop, such as the United States where the top twenty percent owned eighty-seven percent of the financial wealth and eighty percent of the total wealth, despite having the largest GDP in the world.
However, capitalist societies also have seen progressively larger gaps between the upper and middle classes develop, such as the United States where the top twenty percent owned eighty-seven percent of the financial wealth and eighty percent of the total wealth, despite having the largest GDP in the world.