Capitalism is a system of government where large non-governmental groups control the supply and labor market through the distribution of their considerable resources (their titular "capital.") On the other hand, a free market is an uninterrupted system of exchange between individuals with minimal oversight from the government. I want to be very clear on this point: I support free market economics, but not necessarily capitalism. While I think that capitalism as a system of economic management is flawed, I think it very much outperforms any other system of economic governance, for one key reason: its basis is in the free market. No matter what system of economic management you use, if its basis is in a free market, then I believe it will lead to prosperity and wealth.
So, what, exactly, is a free market?
A free market is a world in which an individual with a dream to start up a deli in his home town can do it with minimal input from a governmental body; in other words, he doesn't have to ask permission, and the only laws he has to follow are ones that pertain to health and safety. He can set his own prices, hire and fire his own workers, and procure his raw materials anywhere. He also is not begrudged any amount of profit that he can acquire.
A free market is a world where an individual "votes with their dollar." In other words, each individual exchanges his or her hard-earned cash for goods and services that they believe are superior, which incentivizes the businesses they patronize to improve their quality and service.
Capitalism, on the other hand, is one permutation of a free market in which a large amount of "capital," which is interchangeable with "assets," is concentrated among a small number of groups, each of which utilize that capital to create more capital in order to benefit "shareholders."
Now, I believe that capitalism works. It doesn't work perfectly, but I believe that since its basis is in free market economics, its foundation is solid enough that it doesn't need replacing. This is not because capitalism, in itself, is correct. It is functional, enough to the point where very few Americans (or citizens of any other capitalist nation) go hungry. Yes, there are outliers. But the last time an actual wide-spread famine hit America was, well, never, not since the war of independence. People who don't appreciate this fact are ignoring the reality that famines were a fundamental part of the human experience for thousands of years. Capitalism solved that. Communism exacerbated it.
I am only mentioning communism here because it is generally considered as being diametrically opposed to capitalism, and is its only widely recognized alternative.
Again, capitalism has its flaws. But so does every system of governance. Since capitalism is based in a free market, it functions enough to provide general security for the population at large. Free markets, not capitalism, is what I support. They are not interchangeable; one begets the other.
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