A purely capitalist economy ought to have the following characteristics: private ownership of the means of production and capital; low levels of taxation and regulation; competition unfettered by subsidies, bailouts, and protectionism; and the free flow of goods, services, and capital both domestically and internationally. Lastly, and here the government does have a crucial role to play, a capitalist economy ought to have an independent and efficacious judiciary that protects life, liberty, and property, and punishes fraud and theft.
If you've ever wondered the meaning of the various terms - socialism, social democracy, capitalism, crony-capitalism, corporatism, laissez-faire economics, etc. I highly recommend reading this from The Atlantic
Some other interesting nuggets from the article
The EFW has ranked Hong Kong as the world’s freest economy since 1970. In 2013, in contrast, the United States came in the 16th place out of 157 countries surveyed—behind such countries as New Zealand, Switzerland, Ireland, Canada, Great Britain, and Australia.
But, much of the wealth produced by the private sector each year is not spent by the private sector, but by the government. Today, local, state, and federal governments spend 39 percent of the gross domestic product.
... my point is that contrary to what the advocates of economic freedom might wish, taxation in America is neither particularly low nor easy. According to the World Bank, the totality of the tax burden (i.e., the level of taxation and the difficulty of compliance with the tax code combined) in the United States is more onerous than in many other countries. That includes the relatively economically free Hong Kong and the socially democratic Denmark.
The money paragraphs come toward the end of the article, which I will leave you to read and think about on your own.