Capitalism

Economic system based on private ownership and market allocation.

free-market economy capitalist system

An economic system characterized by private ownership of the means of production and a market-driven allocation of resources, where goods and services are produced for profit.

Etymology

Capitalism derives from 'capital,' which entered English in the 16th century from Italian 'capitale' meaning 'property, wealth.'

Explain Like I’m 5

Capitalism is like a lemonade stand where you own the lemons, sugar, and table, and decide how much to charge customers - it's all about owning things and making choices based on what people want.

Fun Facts

Adam Smith, considered the father of capitalism, wrote 'The Wealth of Nations'
Capitalism has driven significant technological innovation
The term 'capital' originally referred to livestock and other forms of wealth

FAQ

What is capitalism? It's an economic system where private individuals or businesses own and control the means of production
How does it work? Businesses compete to offer goods and services that consumers want, setting prices based on supply and demand
What are some examples? The United States and Japan have capitalist economies

Hypernyms — Broader Categories

economic system

Hyponyms — Specific Examples

laissez-faire free market

Meronyms — Parts or Components

private property markets

Indexes

application-based economic system public company

Built by Tim Jones