Capitalism - GCSE History Definition

Capitalism is an economic system where businesses, land, and resources are owned by private people or companies. The main goal is to make a profit. In a capitalist country, businesses compete with each other to sell goods and services, and prices are usually decided by what people are willing to pay (the free market). The government does not get too involved in how businesses are run. GCSE History students are likely to see communism in the context of the Cold War. The USA followed capitalism whereas the USSR followed communism. Understanding capitalism helps students see how money, power, and politics are connected — and why countries like the USA made certain choices during the Cold War.