The two perspectives of capitalism are similar in that they support free market economies where there is greater privatization of businesses, liberalization of markets and the absence of coercive government impositions or restrictions regarding economic activities. According to Kates (2014), free market economies are characterized by the valorization of private property and individual rights and by political systems that eschew restrictions or subsidies. Before the emergence of classical economics, most national economies were based on command-control and top-down government policies. Classical economics was opposed to mercantilism, which emphasized maximization of exports and minimization of imports, and instead advocated a radically different approach. His perspective considered the economy to be able to rely on market forces to maintain its equilibrium. Government interventions in the form of artificial tariffs or other barriers that caused a disruption in the free flow of goods and services were harmful to the economy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Classical theory is also called laissez-faire economics and focuses on growth, free trade and competition, and an economic system free from government regulation as possible. The theory predicts that when people are allowed to pursue their own interests, society as a whole benefits (Walsh 2008). The argument of classical economic theory is that the market should be allowed to regulate itself. In this view, concern for profit ensures that the resources available in a society are used in the most beneficial way without government interference. The role of government in the classical perspective is to provide national defense, a public works system that includes education and infrastructure, as well as 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 which predicts that, given all possible choices, decision makers will always prefer to maximize their objective (Walsh 2008). According to Shishmanova (2014) the assumption of the theory is that the individual's rationality allows them to maximize their profit or utility and its emphasis is placed on equilibrium. The way consumers and businesses interact in a free market should contribute to the balance between quantity and supply. The theory requires the government to accumulate capital and eliminate trade barriers and encourage foreign direct investment. Once accumulated, capital flows from areas of low productivity to those of higher productivity.