Final answer:
Capitalism is an economic system characterized by private ownership and competition, which leads to innovation and economic growth, but also potential wealth disparity. Socialism involves more state control, while communism envisions complete public ownership. Presently, many economies blend capitalist and socialist features, including the U.S. with its free-enterprise system and government regulations.
Step-by-step explanation:
Characteristics and Perspectives on Capitalism
To address the question “Is this how Capitalism is seen today?” we need to understand the basic characteristics of economic systems such as capitalism. Capitalism is an economic system where private citizens and companies own the means of production. This system is driven by competition and the intent to earn profits. A key philosopher, Adam Smith, posited that the “invisible hand” of competition leads to the efficient distribution of goods and enhances consumer and producer welfare due to the variety of choices and efficient pricing that develops as a result.
The distinction between socialism and communism lies in the degree of government involvement and property ownership. Socialism adheres to state ownership or control of some of the key means of production and distribution, with central planning or market socialism as its two variants. In contrast, communism is a system where all property is publicly owned, and each person works and is compensated according to their abilities and needs. Furthermore, communism is both an economic and a political system that calls for the abolition of class structures.