A capitalist economy can be defined as one in which the economy is in hands of private individuals or corporations. This system is based on self-interest and profit motifs. In a capitalist economy people have the access to private ownership of property, which include machines, implements, mines and factories as well. The government doesn’t decide the price of goods and service, but the price mechanism is handled by private people by the interaction of demand and supply. Production under this system is consumer oriented, and anyone has the authority to set up a private enterprise. The capitalist economy is considered the most democratic system of economy, as it pushes people to be self efficient to gain more profit.
