Title: Capitalistic System | Meaning | Features of Capitalistic Economy
Headings: Capitalistic System | Meaning | Features of Capitalistic Economy
Capitalistic System | Meaning | Features of Capitalistic Economy
Meaning of Capitalistic System
Capitalistic System – Meaning, Features
Features of Capitalistic economy
1. System of Private Property
2. Profit Motive
3. Economic freedom
4. Perfect Competition
According to George Halm, perfect competition
5. Consumer’s Sovereignty
6. Role of Price Mechanism
7. The Role of the Government
8. Prevalence of two classes

Content: From the economic point of view, it drives every one to be efficient and economic, avoiding wastage. Perfect competition is indispensable for the efficient working of the free economy which is unplanned and uncontrolled. According to George Halm, perfect competition
guarantees the constant supply of those energies without which the unplanned economy could not work properly. Without the protection through competition, the capitalist economy would become stagnant, unproductive and exploitative. But in practice, free and perfect competition may not exist. It will be mostly imperfect competition, if not complete monopoly in many spheres of economic activities. 5. Consumer’s Sovereignty
Utilization of resources, technique of production, output in a capitalistic economy depend on the impersonal force of consumer’s demand. Hence a consumer is considered a King under capitalism. This sovereign extends his survey in all economic activities by exercising his choice.