What is Capitalism?

Here are what I think are the fundamental tenets of capitalism.

Individuals -- Individual persons are important.

Rights -- Individuals have rights that are not the proper subject are infringement. Regardless of whether one or many think that their diminution would be better for the majority or would result in fairer ways of doing business, it is wrong to impede on them.

Property Rights -- Property rights are the most important rights to be considered when thinking about capitalism. You have certain things. I have certain things. You own a shoe polishing kit. I own a tractor.

Freedom -- Freedom is precious. The ability to do as we please with our property as long as we do not infringe on others' rights to do as they wish with their property should be upheld.

How It Works -- Now for the economics, trading side. People and their properties interact. The people are in control of their own property. We all have needs and desires. You need a tractor to farm your land. I want my shoes polished, and I want to avoid polishing them myself. The genius (although not abstract or complicated) is that people generally know their situations and desires and needs better than others. I am in a better position to decide whether I want to accept your offer of 200 shoe polishing sessions for my tractor than anyone else. Beyond that, I am in a better position to decide whether I want to accept that offer, decline, or counteroffer. It is my tractor, and I ought to be allowed to decide what I want to do. I am not harming you by declining your offer because you have no right to my tractor. You have a similar right, the right to your shoe shining kit and your labor. You and I can work it out, or not. You can go find someone else who values his or her tractor less than I do or who values your shoe shining labor more than I do.

Best Match of Supply and Demand -- Capitalism leads to the true matching of supply and demand. The alternative is some form of coercion. Government intervention is the biggest target of capitalism. Regulation limits the ways in which people can get what they need and want at the best prices. Regulation creates static in the supply and demand. It increases costs of production, or increases revenue for services and products that are not valuable enough to survive in their present form on their own, or increases cost of products.

I may be missing something important to capitalism. Let me know if you think of something. Thanks.