Capitalism is the dream of all societies, and the most desired form of economy because of its natural honesty. A pure form of capitalism is not practiced in any governed society, free or otherwise, only variations on the theory of capitalism.
The term "capitalism" is often used interchangeably with the term "free market". The reason for this is that a truly capitalistic market is a free market. A free market is a market that exists without the intervention of outside forces (government).
The free market is the natural state of economics. All forms of political manipulation are used to coerce the market, but the state of capitalism is the natural state at which an economic system reaches equilibrium. This is the economic state that exists in the absence of government, so when the government coerces the system of economics to their advantage, the systems adjusts toward capitalism, dooming all other market structures to failure in the long run.
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