Changes

'''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 (see [[law of supply and demand]]).

'''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 exploitation, transfer of money, goods (including capital goods), and services 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.

One self-regulating feature of capitalism is competition and cheap foreign labor, 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 and very American.  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]] (snif), and the advent of information technology, capitalism is becoming increasingly widespread.

[[Adam Smith]] described the operation of capital accumulation through the productive powers of labor as such,

[[Adam Smith]] described the operation of capital accumulation through the productive powers of labor as such,