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'''Capitalism''' is a [[free market]] economic system based on private ownership and entrepreneurship. The investment of capital, and production, distribution, income, and prices are determined not by government (as in [[socialism]]) but through the operation of a competitive market where decisions are voluntary and private rather than regulated and mandated by government (see [[law of supply and demand]]).

 

 

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.

 

 

 

 

 

 

egard, 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.