Capitalism is the world’s most dominant economic system and is increasingly being adopted by countries and other economic entities worldwide. The core of capitalism is private ownership of the means of production, and labor is paid only wages. This system of economics has been around since the era of feudal and mercantile Europe, though modern-day capitalism has been around since industrialization. Capitalism enables efficient production and large-scale availability of mass-market consumer goods.

In a capitalist system, private property rights are enforced and their enforcement provides incentives for companies to invest in productive capital. This allows economic gains to be shared by those who own the capital and the labor. These economic gains are usually in the form of more money collected, more resources being produced, and lower prices for goods produced. This encourages competition, which can result in higher quality services and products and increased efficiency.

Unlike other systems, in a capitalist economy, the government does not provide services like healthcare and education, rather, the private sector does. This is mainly because of the incentive for private companies to make profits. This is seen in countries like the United States, where healthcare and education are provided by and largely paid for by private companies, not the government.

To ensure a healthy and prosperous economy, capitalism is often accompanied by some form of government regulation. This regulation is meant to guard against the abuses of capitalism, and governments can use economic regulation policies to ensure that companies are playing by the rules. Regulations can also help stop issues like cronyism, as governments can control the level at which businesses are able to interact with the government.

Overall, capitalism is an economic system in which the means of production are owned by private individuals and labor is paid wages. This system has been adopted by most countries in the world and is responsible for industrialization, the large-scale availability of consumer goods and efficient production. In capitalism, the government provides regulation intended to guard against abuses, while non-government entities provide services such as education and healthcare.