So, imagine you and your friends are playing a game at school where you sell lemonade. You each have your own lemonade stand and you sell it for as much money as people are willing to pay. The person who makes the most money gets to keep it all! This is kind of like a capitalist state.
Now, in real life, countries are like big lemonade stands. The people who live there work hard to make money and the government helps create rules to make sure everyone can sell their lemonade and make as much money as possible. This is called a “capitalist” state because people are free to buy and sell things as they please.
But sometimes, some people have more money than others and they use that money to try and make even more money. This can be good for some people, but it can also be bad for others who can’t buy as much as they need to live a good life. The government is supposed to try and make sure everyone has a fair chance to buy and sell things so that the people who need help the most can get it.
So, just like in your lemonade stand game, some people have more money than others in a capitalist state, but everyone is working hard to make as much money as they can, and the government is trying to make it as fair as possible for everyone.