Capitalism

Extracted Attributes

• Forms

  Laissez-faire capitalism, anarcho-capitalism, state capitalism, welfare capitalism, mixed economies

• Core Features

  Capital accumulation, competitive markets, price system, private property rights, wage labor, voluntary exchange

• Origin Region

  Western Europe

• Economic System Type

  Private ownership of means of production, operation for profit

• Decision-making Driver

  Owners of wealth and capital in financial markets

• Characteristic Tendency

  Economic growth

• Historical Class System

  Capitalist class (owners), Working class (labor)

• Opposing Economic Systems

  Socialism, Communism

• Key Thinker (18th Century)

  Adam Smith

• Key Thinker (19th Century)

  Karl Marx

• Coined Term (Mid-19th Century)

  Louis Blanc, Pierre-Joseph Proudhon

• Price and Distribution Mechanism

  Market competition

• Associated Historical Developments

  Agrarian capitalism, Mercantilism, Industrial Revolution

Timeline

• Emergence of agrarian capitalism and mercantilist practices in Europe. (Source: Web Search, Britannica)

  16th-18th centuries

• Adam Smith published 'An Inquiry into the Nature and Causes of the Wealth of Nations,' traditionally tracing modern capitalist theory. (Source: Britannica)

  1776-03-09

• The Industrial Revolution cemented capitalism as the primary method of production, characterized by factory work and a complex division of labor. (Source: Web Search, DBPedia)

  18th century

• The term 'capitalism' in its modern sense emerged, coined by thinkers like Louis Blanc and Pierre-Joseph Proudhon. (Source: Web Search)

  Mid-19th century

• Karl Marx discussed 'capital' and the 'capitalist mode of production' extensively in Das Kapital. (Source: Web Search)

  1867

• Capitalism spread across the world through globalization. (Source: Web Search)

  19th-20th centuries

Web Search Results

• History of capitalism - Wikipedia

  Capitalism is an economic system based on the private ownership of the means of production. This is generally taken to imply the moral permissibility of profit, free trade, capital accumulation, voluntary exchange, wage labor, etc. Modern capitalism evolved from agrarianism in England and mercantilist practices across Europe between the 16th and 18th centuries. The 18th-century Industrial Revolution cemented capitalism as the primary method of production, characterized by factories and a [...] The term "capitalism" in its modern sense emerged in the mid-19th century, with thinkers like Louis Blanc and Pierre-Joseph Proudhon coining the term to describe an economic and social order where capital is owned by some and not others who labor. Karl Marx discussed "capital" and the "capitalist mode of production" extensively in Das Kapital (1867). [...] Some historians argue that the roots of modern capitalism lie in the "crisis of the Late Middle Ages," a period of conflict between the aristocracy and agricultural workers. This system differs from earlier forms of trade by focusing on surplus value from production rather than simply "buying cheap and selling dear." Conceptions of capitalism have evolved significantly over time, influenced by various political and analytical viewpoints. Debates sometimes focus on how to bring substantive

• Main Characteristics of Capitalist Economies

  Capitalism is an economic system that focuses on a free market to determine the most efficient allocation of resources and sets prices based on supply and demand. Socialism is often presented as the opposite of capitalism, whereby there is no free market and the allocation of resources is determined by a central body. Capitalism has many unique features, some of which include a two-class system, private ownership, a profit motive, minimal government intervention, and competition. [...] Capitalism in its purest form is a society in which the market sets prices for the sole purpose of profits. Theoretically, any inefficiency or intervention that reduces profit-making will be eliminated by the market. In a capitalist economy, individuals have the right to choose any occupation they wish and to own property, plant, and equipment to start businesses. They are allowed to conduct the business as they see fit while competition with other businesses leads to lower prices and [...] ## Two-Class System Historically, capitalist society was characterized by the split between two classes of individuals: the capitalist class, which owns the means for producing and distributing goods (the owners), and the working class, who sell their labor to the capitalist class in exchange for wages (the workers). In contemporary capitalism the boundary is blurred; many workers are also stockholders, and business owners often earn a salary working as executives or directors.

• Capitalism

  Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit "Profit (economics)"). This socioeconomic system has developed historically through several stages and is defined by a number of basic constituent elements: private property, profit motive, capital accumulation, competitive markets "Competition (economics)"), commodification, wage labor, and an emphasis on innovation and economic growth. Capitalist [...] Capitalism, in its modern form, can be traced to the emergence of agrarian capitalism and mercantilism in the early Renaissance, in city-states like Florence. Capital "Capital (economics)") has existed incipiently on a small scale for centuries in the form of merchant, renting and lending activities and occasionally as small-scale industry with some wage labor. Simple commodity exchange and consequently simple commodity production, which is the initial basis for the growth of capital from [...] Capitalism in its modern form emerged from agrarianism in England, as well as mercantilist practices by European countries between the 16th and 18th centuries. The Industrial Revolution of the 18th century established capitalism as a dominant mode of production "Capitalist mode of production (Marxist theory)"), characterized by factory work, and a complex division of labor. Through the process of globalization, capitalism spread across the world in the 19th and 20th centuries, especially before

• Capitalism | Definition, Characteristics, History, & Criticism - Britannica

  Capitalism is a widely adopted economic system in which there is private ownership of the means of production. Modern capitalist systems usually include a market-oriented economy, in which the production and pricing of goods, as well as the income of individuals, are dictated to a greater extent by market forces resulting from interactions between private businesses and individuals than by central planning undertaken by a government or local institution. Capitalism is built on the concepts of [...] monetary systems and legal codes, necessary for economic development and eventually made possible the shift from public to private initiative. [...] Modern capitalist theory is traditionally traced to the 18th-century treatise An Inquiry into the Nature and Causes of the Wealth of Nations by Scottish political economist Adam Smith, and the origins of capitalism as an economic system can be placed in the 16th century. From the 16th to the 18th century in England, the industrialization of mass enterprises, such as the cloth industry, gave rise to a system in which accumulated capital was invested to increase productivity—capitalism, in other

• Capitalism - Learn About the Pros and Cons of Capitalism

  Capitalism is an economic system that allows for and encourages the private ownership of businesses that operate to generate profit. Also known as the market system, capitalism is characterized by private land ownership rights, competitive markets, the stable rule of law, freely operating capital markets, low corruption, and a price discovery process. In other words, it is the opposite of communism, in which the means of production are owned by and controlled by the government. [...] Home › Resources › Economics › Capitalism # Capitalism An economic system that encourages the private ownership of businesses that operate to generate profit Written by CFI Team Read Time 3 minutes Over 2.8 million + professionals use CFI to learn accounting, financial analysis, modeling and more. Unlock the essentials of corporate finance with our free resources and get an exclusive sneak peek at the first module of each course. Start Free Start Free ## What is Capitalism?

• Instance Of

  Q4167410

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private property, property rights recognition, voluntary exchange, and wage labor. In a market economy, decision-making and investments are determined by owners of wealth, property, or ability to maneuver capital or production ability in capital and financial markets—whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets. Economists, historians, political economists and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free-market capitalism, anarcho-capitalism, state capitalism and welfare capitalism. Different forms of capitalism feature varying degrees of free markets, public ownership, obstacles to free competition and state-sanctioned social policies. The degree of competition in markets and the role of intervention and regulation as well as the scope of state ownership vary across different models of capitalism. The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing capitalist economies are mixed economies that combine elements of free markets with state intervention and in some cases economic planning. Market economies have existed under many forms of government and in many different times, places and cultures. Modern capitalist societies developed in Western Europe in a process that led to the Industrial Revolution. Capitalist systems with varying degrees of direct government intervention have since become dominant in the Western world and continue to spread. Economic growth is a characteristic tendency of capitalist economies.