Understanding Capitalism and Its Impact

Capitalism is an economic system based on private ownership and the pursuit of profit.

In capitalism, the means of production—factories, machinery, tools, and resources—are

owned by individuals or companies rather than the state. Workers are employed for wages,

while owners earn profits from what is produced. This contrasts with communism,

where production is owned collectively, and wealth is shared according to need. The ideological

rivalry between capitalism and communism fueled the Cold War throughout much of the 20th century.

The most common form is free market capitalism, driven by supply and demand.

Supporters argue that when people freely buy and sell, competition ensures better goods and