“Capitalism is successful for obvious reasons – reasons that socialists understand and hate. If a country has private property, a free market, free trade and free enterprise under the rule of law, and if private companies are so constrained that the only way they can make profits is by offering better goods and services, then prosperity for all will follow as surely as day follows night. There are no exceptions in history. Many capitalists, perhaps most, hate free competition and are constantly lobbying politicians to try to pervert it to their advantage. In a free market, where state-owned companies are allowed to compete with private companies, the private companies will almost always offer better and cheaper goods and services. The reasons are obvious: in an ever-changing economy, with ever-changing technologies and ever-changing goods and services, a private company, freed from political restraints and considerations, with no other purpose but to make a lot of money, will be quicker, more flexible, more inventive, more efficient and more responsive than any state-owned company. Electricity supply is an exception. Here the advantages of private enterprise do not apply.”
What type of economy does this illustrate? Motivate your answer and provide details of this economic system.