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What Is Capitalism?
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This excerpt from "What Is Capitalism?" by the Hoover Institution argues that capitalism is the most effective economic system for achieving peace, freedom, and prosperity. The authors explain that capitalism relies on private property, markets, and the Rule of Law to solve the coordination problem of production and distribution. They contrast capitalism with socialism, which they argue has failed to achieve these goals. The excerpt also discusses the historical development of capitalism, arguing that it was a product of the Enlightenment and the ideas of thinkers like John Locke and Adam Smith. Finally, the authors explore the application of capitalist principles to education, arguing that the current government-run school system is inefficient and wasteful compared to a private system.
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