Capitalism is an economic system where private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market, rather than through central planning. In a capitalist system, people have the freedom to start their own businesses and compete with others.
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Adam Smith is considered the father of modern economics and introduced the concept of the invisible hand, which guides free markets to balance supply and demand.
Under pure capitalism, the government practices laissez-faire policies, meaning minimal intervention in business affairs, replacing mercantilism which was the dominant system in Europe during the 16th to 18th centuries.
Economic growth calculation relies on formula concepts like CO2 impact emissions versus profit metrics, aimed at maximizing growth by a factor of 102 or more.