A capitalist economy is one in which private individuals own and operate businesses for profit, and prices and production are determined by market forces.In a pure capitalist system, there is little or no government regulation of business, and the role of the state is limited to protecting property rights and enforcing contracts. This type of economy typically arises in societies with strong traditions of personal liberty and private property rights.

The United States has a mixed capitalist economy, which means that it incorporates elements of both capitalism and socialism. The US federal government regulates certain industries, such as transportation and healthcare, while other industries are mostly left to the free market. Prices in the US are determined by both supply and demand as well as by government intervention.

Some of the key benefits of a capitalist economy include economic freedom, competition, and innovation. Critics of capitalism argue that it leads to income inequality, cronyism, and environmental degradation.