Both perspectives of capitalism are similar in that they advocate market economies where there is increased privatization of businesses, liberalization of markets and absence of taxation or coercive restrictions from the government. regarding economic activities. According to Kates (2014), market economies are characterized by valuing private property and individual rights and by political systems that avoid restrictions or subsidies. Before the emergence of classical economics, most national economies relied on government policies of control and command, imposed from above. Classical economics was against mercantilism, which emphasized maximizing exports and minimizing imports, and instead supported a radically different approach. According to him, the economy was able to rely on market forces to maintain its balance. Government intervention in the form of artificial tariffs or other barriers that disrupted the free flow of goods and services was detrimental to the economy. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay Classical theory is also called laissez-faire economics and focuses on growth, free trade, competition, and a system economic free from government regulation wherever possible. The theory is that when individuals are allowed to pursue their own interests, society as a whole benefits (Walsh 2008). The argument from classical economic theory is that the market should be able to regulate itself. From this perspective, the profit motive ensures that the resources available in a society are used in the most beneficial way possible, without government interference. In the classical perspective, the role of government is to provide national defense, a system of public works that includes education and infrastructure, and a justice system that allows for the enforcement of contracts. Likewise, the main goal of neoclassical economics is to enable efficient allocation of scarce resources. The neoclassical perspective is based on the assumption of rationality that, given all possible choices, decision makers will always prefer to maximize their objective (Walsh 2008). According to Shishmanova (2014), the theory's assumption is that the individual's rationality allows them to maximize their profit or utility and the emphasis is on balance. The way consumers and businesses interact in a free market should contribute to balanced quantity and supply. The theory requires the government to accumulate capital, eliminate trade barriers, and encourage foreign direct investment. Once capital is accumulated, it flows from areas of low productivity to areas of higher productivity..