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What Is The Difference Between Capitalism And Capitalism

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Capitalism is an economic system characterized by private ownership of resource and markets (Tucker, 2011). It is called free enterprise system or laissez-faire. This system emphasizes the ability of individuals to create and accumulate wealth for its own self- interest. In the context of capitalism, individual is not only refers to one person but it also can be seen to a group of individuals such as company. In addition, the government cannot intervene in any economic activity but only maintain law and order in the country. Capitalism also provides many incentives to consumers, producers and owners of economic resources to use the resources available to them as soon as possible. This situation is considered as economic efficiency because it refers to the full utilization of factors of production. According to Jain and Khanna (2006), mixed economic system is a synthesis of characteristics of both capitalism and socialism. Mixed economy has two main focused which are social welfare and government interference in economic activities. There are some differences between capitalism and mixed economies.
The difference between the capitalism and mixed economies can be seen through private property. Under the system of capitalism, individuals have the freedom to make own choices and own decision how to use the factors of production and private property in carrying out economic activities. Although the government cannot intervene in all economic activities, but the government is

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