Is it true Capitalism replaced mercantilism as the economic theory prescribed to freeing industry from government regulations?

Yes, capitalism emerged as a dominant economic theory that replaced mercantilism, particularly during the late 18th and early 19th centuries. Unlike mercantilism, which emphasized government intervention and regulation to control trade and accumulate wealth, capitalism advocates for free markets, competition, and minimal government interference in economic activities. This shift allowed for greater innovation and efficiency in industry, promoting individual entrepreneurship and the belief that the free market could better allocate resources.