Capitalism is an economic system that is based on competence. Competence is having required skills, qualification, or knowledge to do something. Capitalism recognizes individuals rights and enforces private property rights. With capitalism, the country's industry and trade is controlled by individual owners for profit, not by the state. The United States is an example of a capitalistic government and it plays a very important part in our lives. There are many advantages in having a capitalistic government. In a country that uses capitalism the economy is based on free markets where resources and firms are privately owned. This is an advantage because the government is less involved with the businesses and in return creates