One of the advantages of capitalism is that it assures efficient allocation of resources. Capitalism allows individuals and businesses to make their own economic decisions based on market demand and supply. Competition between businesses in a capitalist system drives innovation and efficiency, which leads to the production of goods and services that are demanded by consumers at the lowest possible cost. In a free market capitalist system, resources are allocated based on their most productive use, meaning that resources are not wasted and are utilized to their maximum potential. As a result, capitalism helps to create wealth and raise living standards for individuals and society as a whole.