What key feature distinguishes capitalism from other economic systems?

Free market competition is the defining feature that distinguishes capitalism from other economic systems. In a capitalist economy, the production and distribution of goods and services are driven largely by individuals and businesses operating in a competitive market, rather than by government control. This competition encourages innovation, efficiency, and a variety of choices for consumers, as companies strive to gain a larger market share and satisfy consumer demands.

In contrast to capitalism, other economic systems such as socialism and communism often involve varying degrees of state ownership of resources and centralized planning. These systems prioritize equality and the distribution of wealth over competition, which can limit the incentives for businesses to innovate or respond to consumer preferences as effectively as they might in a capitalist environment. Thus, the emphasis on free market principles and competition is what ultimately sets capitalism apart.