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'''Capitalism''', also called '''free market economy''' is an economic system where the investment of capital, and production, distribution, income, and prices are determined not by government (as in a [[planned economy]]) but through the operation of a competitive market where decisions regarding transfer of money, goods (including capital goods), and services are voluntary and private rather than regulated and mandated by government.
'''Capitalism''', also called '''free market economy''' is an economic system where the investment of capital, and production, distribution, income, and prices are determined not by government (as in a [[planned economy]]) but through the operation of a competitive market where decisions regarding transfer of money, goods (including capital goods), and services are voluntary and private rather than regulated and mandated by government.
One self-regulating feature of capitalism is competition, which helps maintain fair market value for goods and services. However, ''unrestrained'' or ''pure'' capitalism creates 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 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.