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In a capitalistic society individuals and businesses aim to earn a profit with the production of their investment and labor in a free market operating largely by supply and demand.
Definition of capitalism socialism and mixed economy. Capitalism allegedly has failed has proven itself incapable of solving economic problems and so mankind has no alternative if it is to survive than to make the transition to a planned economy to socialism. A mixed economic is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital but also allows for governments to interfere in economic activities in order to achieve social aims. The central idea of this kind of economy is that all the people have similar rights and in this way each and every person can reap the fruits of planned production.
Socialism is an economic and political system under which the means of production are publicly owned. The mixed system is a via media between the free enterprise economy and state capitalism or communism. Production and consumer prices are controlled by the government to best meet the needs of the people.
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