At its most simple and value-free,the term capitalism is used to describe any economic system where is a combination of private property, a any economic system where relatively free and competitive market, and a general assumption that the bulk of the work force will he engaged in employment by private(non-governmental employers engaged in producing whatever goods they can sell at a profit.Capitalism has its own ideology and economic theory, like all politico-economic systems. The original theory of capitalism was essentially that an entirely free market of small-scale entrepreneurs, hiring individual labourers at the minimum possible cost, would produce the maximum output, a the cheapest possible price given the cost of the other inputs inputs necessary for production.
This is often called the”perfect competition model” of economics. One aspect of this model is to require government neither to own any productive enterprise, nor to regulate or control the economy in any way. However valid or otherwise this simplc model might be, current understanding of capitalism focuses on two ideas; production for profit and the existence of private property which is only partially controlled by the state.
To believers in capitalism(which, with some reservations, means all the major parties of the United Kingdom and USA, and most parties in Western Europe and the Old Commonwealth) ,this from of economic organization provides the greater likehood of maximizing economic performance and defending political liberty while securing something approaching equality of opportunity.