Pure capitalism, also termed laissez-faire (without any restrictions) capitalism, exists when market forces operate without government interference. Welfare or state capitalism exists when the means of production are owned by private citizens to pursue profit, but they must operate under market restraints that limit what they can produce or sell. This system of laws is designed to protect the welfare of the population and to provide a “social safety net” for underprivileged, disabled, or people cannot work to support themselves. One of its major shortcomings, however, is that it increases the levels of economic inequality in society. Sernau (2011) writes about two documents which changed the course of recent history by creating a new social contract by which society should be governed: the US Declaration of Independence and Adam Smith’s book "Inquiry into the Nature and Causes of the Wealth of Nations." Thomas Jefferson settled on the clause “the pursuit of happiness” as a general reference to capitalism and unrestricted free-market activity while Adam Smith rebelled against the complete economic and full held by kings and the aristocracy. Smith argues that free trade without any restrictions is fair and meets the demands of consumers. Sernau (2011) writes, Smith asserted that the market will balance itself out by the competition of individual demands and produce an overall greater good for everyone. Sernau (2011) notes, “[In] what became known as liberalism, Smith envisioned a world of free trade, free markets, and free competition among firms that is still at the heart of global capitalism...both Jefferson and Smith believed that by limiting royal power they were setting the stage for nations of free, prosperous, and more equal citizens” (p. 12). Karl Marx, in contrast, termed himself a “political economist” and was keen to use “historical-comparative and quantitative data” as a basis for his positions (Serna