Capitalism

The Symbiosis of Capitalism, Liberalism, and Neoclassical Economics

We defined Capitalism as an economic system that uses outside ownership to amass private profits.

This requires:

• private ownership
• free markets to allow trading of ownership
• the pursuit of profit

Private ownership naturally begins with civilization.

Free markets began after Mercantilism, which set up the system of regulated large-scale trade, had declined in favor or Liberalism and free trade and free markets.

The pursuit of profit was formalized by the Marginal Revolution as profit maximization. This made everyone a mini-trader.

Private ownership merged with free markets and the pursuit of profits led to Capitalism.