Capitalism is an economic system where private individuals or businesses own and control the means of production and distribution of goods and services. This system is characterized by competition, profit motive, and minimal government intervention in the economy. The market determines prices and production levels based on supply and demand. In a capitalist society, individuals have the freedom to pursue their economic interests, which can lead to innovation and economic growth. However, capitalism can also result in income inequality and market failures, prompting debates about the role of government in regulating the economy and ensuring fair competition.