Capitalism

Capitalism is a economic system where workers are rewarded with money for their labor, and they decide how to spend it. It contrasts with communism, where the government collects all money and then redistributes it.

Successful workers accumulate enough capital that they then build their own means of production, and they become very wealthy. In communism, the government theoretically owns the means of production but in practice government officials control it and become very prosperous at the expense of the general populace.

Because capitalism creates wealth, it enables entrepreneurs to expand their businesses, thereby creating jobs in the private, as opposed to the public, sector. In the public sector, jobs are created when tax dollars become available.

Capitalism is very efficient. It directs economic resources to produce goods and services that consumers want. There is a financial incentive to continually improve products and to innovate. Over a time span of decades or more, capitalist economies outperform other systems.

No system is perfect and capitalism has led to the greatest wealth and egalitarianism in human history.