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: Further it leads to maximum efficiency. Perfect competition, theoretically, is the essence of free capitalism and competition has a special role to perform in capitalistic society. The larger the competition the lesser will be the profits and all excess profits, will be wiped off when competition is keener. Only normal profits which are considered as remuneration for managerial labour would exist. From the consumers’ point of view that serves as a regulator in prices keeping the prices at the lowest possible level. 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.