What two principles form the basis of capitalism?

The two fundamental principles that form the basis of capitalism are:

1. Private Property - This principle maintains that individuals have the right to own and control resources, assets, and means of production. This ownership includes the right to acquire, use, manage, and dispose of property as one sees fit, within legal boundaries. Private property rights ensure that individuals can accumulate wealth and assets, which can then be used to invest and create more wealth.

2. Free Market - The principle of a free market dictates that economic decisions regarding the production, distribution, and consumption of goods and services are made by market forces without undue interference by the government. This means that prices for goods and services are set by supply and demand, and individuals are free to engage in economic transactions as buyers or sellers. The competition that arises in a free market encourages efficiency and innovation.

These two principles underpin the capitalist system by allowing individuals economic freedom to make choices that direct their entrepreneurial efforts and investments, with the aim of generating profit.