posted by Anonymous .
Hi. I would like to know what Capitalism is in simple terms.
From Wikipedia, this is what it says:
Capitalism is an economic system in which the means of production are privately owned and operated for profit.
Could I get more information please.
Under capitalism, most businesses are owned by private individuals and companies. They own the factories, pay the workers, and make profits.
The word "capitalism" comes from the meaning of "capital" in business.
If you have an idea for a business, and you get 10 other people to agree to lend you money to get started, the money they lend you is your capital. They must like your idea AND believe it will be successful -- and if your idea is successful, you'll be able to repay each person over time.
Some people don't have to borrow money to start their business. They save up until they have what they need. It's still their capital, though, except there would be no one to have to repay.
That's VERY simplistically put, but it's the basics.
Thanks a lot to both of you. I feel like I'm beginning to understand this economic stuff better than before:)
You're wise to make such an effort to understand these concepts! :-)
And you're welcome.