Abstract Capitalism is said to be an economic system that is based upon the profit maximization goal. It is both an economic and social system in which individuals can maximize profits because they own the means of production. In the Marxist analysis, profits are tenable by the exploitation of the workers who offer labor (Esping-Andersen 1990). Thus capitalism exists all over the world where the factors of production and distribution of goods and services such as technology, land, capital, factories, and transport are owned by a few people, that is, the capitalist class while the working class is paid to produce goods and services which are later sold at a profit. This profit is the difference between what is produced and the cost of labor, that is, the working class is exploited by the capitalist class. Individualism In individualism, an individual is a primary unit of reality and the ultimate standard of value, which does not object that the society co-exists and that people benefit in the co-existence, but projects the idea that society is a collection of individuals, not something over and above them. (Robinson). The relationship between capitalism, freedom, and individualism of the 17 th century was contingent.The emergence of the corporate structures in late capitalism declined the earlier dominance of possessive individualism. This has largely been attributed to the regulation of modern societies by the state (individuation), the localization of the life-worlds, and the crisis of the subject in the post–modernist culture of intellectuals. The emergence of new capitalist centers like Japan which appear to be developing without individualistic values and institutions depending on the collectivist norms and authoritarian forms of management and organization means that the relationship between capitalism and individualism is contingent and variable. Freedom and liberty can only exist in the capitalist system. This is because any person is free to choose when force is not being directed against him. Any person’s freedom can only be infringed when another person uses physical force against him. If an individual cannot start his own company is a violation of his freedom. Freedom is said to be one whole and anything that reduces the freedom of an individual affects the freedom of the rest. Economic freedom is one of the ways of attaining political freedom. This arises because the kind of competitive capitalism which provides economic freedom directly also promotes political freedom because it differentiates between political power and economic power (Turner 1988). Thus it can be concluded that no true freedom and liberties can be achieved without the rewards from a capitalist socio-economic structure. And again capitalists cannot survive in a society where personal freedom and liberties are oppressed, thus if capitalist practices are against freedom eventually the socioeconomic system will give way to communist tendencies. Capitalism cannot survive without freedom! (Turner 1988). Competitive markets The competitive markets without stable and credible property rights are ineffective and the stable and credible property rights presuppose the rule of law. They eliminate the differences between private and social costs of using privately owned goods and protect individuals against redistributive policies. The government interference creates a gap between private and social costs of using privately owned goods and reduces incentives to accumulate wealth. The European Union is accelerating the erosion of private property rights, slowly turning member states into provinces, consolidat