Capitalism: meaning, definitions and examples

Historical Origins

• The term 'capitalism' began to be used in the mid-19th century, but the system itself dates back to ancient trade practices.
• Many believe that modern capitalism really started in Europe during the late Middle Ages with the rise of merchant trading companies.
• Key figures like Adam Smith, often referred to as the father of capitalism, published influential works that outlined economic theories advocating for free markets in the 18th century.

Economic Theory

• This system emphasizes private property, meaning individuals can own and manage resources as they see fit.
• Supply and demand dictate prices, meaning if something is more popular, it often costs more, and vice versa.
• Competition is key in capitalism, where businesses must innovate to attract customers, leading to better products and services.

Cultural Impact

• In popular culture, capitalism is often depicted through themes of ambition and wealth, like in movies where characters start from the bottom and rise to riches.
• Capitalism has influenced art, leading to movements that reflect society's views on commerce, success, and materialism.
• The concept often appears in literature, highlighting the struggles between different classes and the pursuit of happiness through wealth.

Global Perspective

• Countries around the world have adopted various forms of capitalism, leading to diverse economic successes and challenges.
• Socialism and communism emerged as responses to capitalism, advocating for more equal distribution of wealth and resources.
• Global trade and the internet have transformed capitalism, allowing businesses of all sizes to reach customers worldwide.

At #6,118 in frequency, this word belongs to advanced vocabulary. It's less common than core vocabulary but important for sophisticated expression.

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