The ideal system of capitalism answers all questions related to economics and politics. Factors of production are basic supplies that are used to create goods and services. Land, labor and capital are factors of production. An entrepreneur collects all these factors and combines them to create goods and/or services. A free enterprise system, which might also be called capitalism, is an economic structure involving private or corporate ownership of capital goods and investments established by private choice rather than government. In order for a free enterprise system to take place, four factors are included: private property, individual initiative, profit, and competition. Individuals and private corporations own most of the means of production. The resources used to produce goods and services are privately owned. The resources produced are also the private property of the individual or company. In this type of system, workers can choose what type of work they do and have the opportunity to change jobs. Individual initiative allows individuals to have the freedom to start and run their own business. In a free enterprise system, citizens control the production and distribution of goods and services. Citizens can also profit from their investments or businesses. Because individuals control the production of goods and services, more individuals and businesses will offer the same goods and services. To make more profits and sweep away the competition, companies must maintain higher quality at a lower price. Adam Smith believed in laissez-faire theory. Laissez-faire theory states that the government should have…half the card…how to use its money, whereas capitalism, that is the whole point. Under capitalism there is wealth and power, while under socialism every person is equal. A flawless mix between the two would be ideal. In the United States we focus more on the fence of capitalism, but there may be times when the government intervenes. The government could intervene for a variety of reasons: to correct market failure, to achieve a more equal division of income and wealth, and to reform the efficiency of the economy. In 2009, President Obama intervened. General Motors and Chrysler were two major deteriorating automakers. Obama intervened in these private companies to correct the failure. The government provided emergency loans to the two automakers so their businesses could remain operational. We are considered a capitalist society, but in some cases our socialism is demonstrated.