Sociological Definition: Capitalism is a social system, in which the producing and distributing of goods in a country is privately owned to produce a profit. The opposite of capitalism, would be when the state or government controls the country’s trade and industries.
Example from Chile: In 1973, the Chilean economy was in a frenzied state. Due to inflation, prices were more than doubled. This was caused by prices being fixed by the government. However, after the crisis in 1973, Chile underwent an extensive economic reform, where the goal was to open up their economy to the world and implement a capitalist economy. This reform paved the way for Chile to receive the title as the “Pioneer of Free-market economic reform”.
