Capitalism Meaning: Definition, Examples, and Translations
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capitalism
[ˈkapɪtlɪz(ə)m ]
Definition
economic system
Capitalism is an economic system in which private individuals or businesses own capital goods and control their use in the production of goods and services. It is characterized by private property rights, competitive markets, and wage labor.
Synonyms
capitalist system, free market economy.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| capitalism |
Used to describe an economic system where private individuals or businesses own and control trade and industry, rather than the state.
|
| free market economy |
Used to describe an economic system where prices for goods and services are determined by open market competition, with little or no government control.
|
| capitalist system |
Used when referring explicitly to the structure or mechanism of capitalism, often in discussions about economics or politics.
|
Examples of usage
- Many argue that capitalism promotes innovation and economic growth.
- Critics of capitalism claim that it leads to income inequality and exploitation of workers.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
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.
Origin of 'capitalism'
The term capitalism originated in the mid-19th century from the word capital, which refers to wealth or assets used to create more wealth. The concept of capitalism as an economic system gained prominence during the Industrial Revolution in Europe and North America. It has since become the dominant economic system in many parts of the world, although it remains a topic of debate and criticism.
See also: capitalist, capitalistic, capitalization, capitalized, capitalizing, undercapitalization.
Word Frequency Rank
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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