Capitalism is an economic system where private individuals and businesses, rather than the state, have control over trade, industry, and profits. It is based on the philosophy of laissez-faire, where the government does not intervene in private business as long as equal rights are respected. Adam Smith was a key advocate for capitalism and argued in his book The Wealth of Nations that self-interest and competition can lead to economic prosperity. While capitalism can be successful if citizens make good choices, it also has disadvantages like economic inequality, greed, unfair advantages, exploitation of labor, and monopoly behavior.

2. Presented By:
Arslan Ahmed
(BBA)
International Islamic University,
Islamabad H-10

3. CAPITALISM

4. Capitalism
People + Money + Freedom= Capitalism

5. Capitalism
• An economic and political system
in which a country's trade and
industry are controlled by private
owners for profit, rather than by
the state
• When private businesses owned
by people control the economy
rather than the government.

6. Laissez Faire and opposition to
Communism
• Laissez Faire is the policy that states
the government should not intervene
with private businesses so long as the
equal rights of individuals are
respected
• Communism is complete government control over
a country and it’s people

7. Adam Smith and the philosophy of
Capitalism
• Adam Smith was a moral philosopher who was a
strong believer in capitalism
• He wrote the book “The Wealth of
Nations” which was about how
self-interest and competition can lead to a
thriving economy
• The philosophy of Capitalism is the belief that the
private sector should be in control of businesses
and other economic standpoints to produce a
thriving economy

8. Is Capitalism realistic?
• Yes.
Capitalism can be a very
successful form of government
as long as people make the right
choices, as with any form of
government. Citizens can be more
influential than the government
itself, and putting them in control of the economy
can make their country a better place

9. Advantages of Capitalism
•
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Competition
Freedom to Choose
Rapid Economic Growth
Private Property rights
Less poverty

10. Disadvantages of Capitalism
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Economic Inequality
Greed
Unfair Economic OR Competitive Advantage
Exploitation Of labor
Monopoly behavior

11. QUESTIONS