What is the Capitalism Theory in Economics?

Capitalism is the social system which now exists in all countries of the world. Under this system, the means for producing and distributing goods the land, factories, technology, transport system etc. are owned by a small minority of people. We refer to this group of people as the capitalist class. The majority of people must sell their ability to work in return for a wage or salary, who we refer to as the working class. The working class is paid to produce goods and services which are then sold for a profit. The profit is gained by the capitalist class because they can make more money selling what we have produced than we cost to buy on the labor market. In this sense, the working class is exploited by the capitalist class. The capitalists live off the profits they obtain from exploiting the working class whilst reinvesting some of their profits for the further accumulation of wealth.

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