The essence of capitalism is economic freedom. There are really only two basic approaches to a modern (non-barter-based) economic system, although you’ll find endless variations on these two approaches throughout the world. One type of economy is the free market economy. That’s capitalism. The other is the planned economy, which some people call a command economy or a Marxist economy.
In this interview, Eugene Fama speaks about capitalism: its roots, principles and effects, benefits and shortcomings as they affect markets.