Blog Post

What is capitalism?

Capitalism is an economic system operating on the principle that private ownership of business best facilitates a society with a prosperous economy. This framework allows private individuals to meet—and profit from—the demands of the market as determined by their fellow citizens.

The father of capitalism and the man who is arguably responsible for its global popularity today is Adam Smith, a Scottish economist who championed the free market system in his 1776 book The Wealth of Nations. Smith contended that by allowing people to work in their own self-interest, the economic benefits would be shared by all the country’s citizens.

These free market ideals were baked into America’s Constitution, which limits government interference in the market and allows private actors to freely pursue their own economic goals. This winning formula has been the single most significant factor in making America into the world’s top economy.

Today, however, there are Americans calling to replace this essential building block with a socialist system. Under socialism, the government would be granted a great deal of leeway to interfere with private business and the income of individuals. This is detrimental not just to the American economy, but to our country’s freedom. To protect America’s success, we must continue upholding, not undoing, free market progress.

More News & Updates

See All News & Updates

Socialism Explained in a Single Chart

Just a few decades ago, it was unfathomable to think that socialism would gain a significant foothold in the United States. But events in recent years have shown us that this ideology, once widely rejected by Americans, is now at the country’s doorstep—and rising in popularity.

Today’s socialists are in…

The Cost of Socialism is Vast

Nearly a year in the making, the 2019 Economic Report of the President was released this past week. Put together by the Council of Economic Advisers (CEA), one of the most striking sections in this year’s report directly addresses socialism. Once considered a fringe ideology, socialism has gone mainstream among America’s…

Socialism Takes, Capitalism Creates

Socialism seems to be growing in popularity—especially among the younger generations. In fact, according to a recent Harris Poll, half of American Millennials and those belonging to Generation Z say they would prefer to live in a socialist country.

The level of support around the ideology is pushing lawmakers…