In order to understand capitalism, we need to be aware of liberalism first. According to Adam Smith(1776), in a liberal society, where the existence of private property is fundamental, the government should not intervene in the economical affairs of the country, leaving the market free of restrictions and barriers. The economy will regulate itself through the balance between supply and demand: an “Invisible Hand” will regulate the market. In a liberal-capitalistic economy, those who have the capital pursue the profit in a market where government regulations and interventions are minimal or not present at all. The excessive use of power by the State might seem to be contradictory to the ideology of liberalism (Howe, 1986), in a world where the belief of the existence of a global free market is becoming more and more important. However, different countries around the globe use different roles of the State to control their economy, and different combinations of those roles produce......

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Title: What Roles Of The State Affect Business In Australia’s Capitalistic Economy
Approximate Word Count: 1734
Approximate Pages: 7 (250 words per double-spaced page)

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