Capitalism is an economic system where the production of goods and ownership of assets are mainly owned by private individuals or institutions instead of a central governing authority. The success of each competing private manufacturer is ultimately decided by the market where people acquire what they want and discard what is not needed or not practical. Capitalism also promotes innovation since the competition inherent to the system motivates individuals or institutions to produce a better product or service for their own unrestricted economic gain. A capitalist economic system closely adheres to the fact that each individual has their own preferences and thus they have the freedom to choose for themselves and cannot be fully dictated by an external factor such as the authority of a government.

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