- ↑ Zimbalist, Sherman and Brown, Andrew, Howard J. and Stuart (October 1988). Comparing Economic Systems: A Political-Economic Approach. Harcourt College Pub. pp. 6–7. ISBN 978-0-15-512403-5.
Pure capitalism is defined as a system wherein all of the means of production (physical capital) are privately owned and run by the capitalist class for a profit, while most other people are workers who work for a salary or wage (and who do not own the capital or the product).
- ↑ Rosser, Mariana V.; Rosser, J Barkley (23 July 2003). Comparative Economics in a Transforming World Economy. MIT Press. p. 7. ISBN 978-0-262-18234-8.
In capitalist economies, land and produced means of production (the capital stock) are owned by private individuals or groups of private individuals organized as firms.
- ↑ Chris Jenks. Core Sociological Dichotomies. "Capitalism, as a mode of production, is an economic system of manufacture and exchange which is geared toward the production and sale of commodities within a market for profit, where the manufacture of commodities consists of the use of the formally free labor of workers in exchange for a wage to create commodities in which the manufacturer extracts surplus value from the labor of the workers in terms of the difference between the wages paid to the worker and the value of the commodity produced by him/her to generate that profit." London; Thousand Oaks, CA; New Delhi. Sage. p. 383.
- ↑ Gilpin, Robert (5 June 2018). The Challenge of Global Capitalism : The World Economy in the 21st Century. ISBN 978-0-691-18647-4. OCLC 1076397003.
- ↑ Gregory, Paul; Stuart, Robert (2013). The Global Economy and its Economic Systems. South-Western College Pub. p. 41. ISBN 978-1-285-05535-0.
Capitalism is characterized by private ownership of the factors of production. Decision making is decentralized and rests with the owners of the factors of production. Their decision making is coordinated by the market, which provides the necessary information. Material incentives are used to motivate participants.
- ↑ Gregory and Stuart, Paul and Robert (28 February 2013). The Global Economy and its Economic Systems. South-Western College Pub. p. 107. ISBN 978-1-285-05535-0.
Real-world capitalist systems are mixed, some having higher shares of public ownership than others. The mix changes when privatization or nationalization occurs. Privatization is when property that had been state-owned is transferred to private owners. Nationalization occurs when privately owned property becomes publicly owned.
- ↑ Macmillan Dictionary of Modern Economics, 3rd Ed., 1986, p. 54.
- ↑ Stilwell, Frank. "Political Economy: the Contest of Economic Ideas". First Edition. Oxford University Press. Melbourne, Australia. 2002.
- ↑ Michael Joff (2011). "The root cause of economic growth under capitalism". Cambridge Journal of Economics. 35 (5): 873–896. doi:10.1093/cje/beq054.
The tendency for capitalist economies to grow is one of their most characteristic properties.