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Capitalist system: meaning, definitions and examples

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capitalist system

[ ˈkapɪtəlɪst ˈsɪstəm ]

Noun

^{Context #1 | Noun}

economic system

A capitalist system is an economic system where private individuals own the means of production and operate them for profit. The key features of a capitalist system include private property rights, free markets, competition, and the pursuit of profit. In a capitalist system, the government's role is limited to protecting private property rights and enforcing contracts.

Synonyms

free market system, market economy.

Which Synonym Should You Choose?

Word	Description / Examples
capitalist system	This term is commonly used in discussions about economic theories or systems where private ownership and profit motive are emphasized. It can be used in both positive and neutral contexts, but sometimes it carries a negative connotation depending on the speaker's perspective. Many people believe that the capitalist system fosters innovation and economic growth. Critics argue that the capitalist system exacerbates income inequality.
free market system	This phrase is often used to describe an economic system where prices are determined by unrestricted competition between privately owned businesses. It usually carries a positive connotation, emphasizing efficiency and individual freedom. Supporters claim that a free market system leads to the most efficient allocation of resources. In a free market system, consumer preferences drive the production of goods and services.
market economy	This term is typically used in academic and policy discussions to describe an economy where decisions regarding investment, production, and distribution are based on supply and demand. It is more neutral and technical compared to 'capitalist system' or 'free market system'. China has transitioned from a planned economy to a market economy over the past several decades. A market economy relies on market signals to allocate resources efficiently.

Word

Description / Examples

capitalist system

This term is commonly used in discussions about economic theories or systems where private ownership and profit motive are emphasized. It can be used in both positive and neutral contexts, but sometimes it carries a negative connotation depending on the speaker's perspective.

Many people believe that the capitalist system fosters innovation and economic growth.
Critics argue that the capitalist system exacerbates income inequality.

free market system

This phrase is often used to describe an economic system where prices are determined by unrestricted competition between privately owned businesses. It usually carries a positive connotation, emphasizing efficiency and individual freedom.

Supporters claim that a free market system leads to the most efficient allocation of resources.
In a free market system, consumer preferences drive the production of goods and services.

market economy

This term is typically used in academic and policy discussions to describe an economy where decisions regarding investment, production, and distribution are based on supply and demand. It is more neutral and technical compared to 'capitalist system' or 'free market system'.

China has transitioned from a planned economy to a market economy over the past several decades.
A market economy relies on market signals to allocate resources efficiently.

Examples of usage

Many countries around the world have adopted a capitalist system.
In a capitalist system, individuals are free to start their own businesses and compete in the market.
The United States is often seen as a prime example of a capitalist system.

Translations

Translations of the word "capitalist system" in other languages:

🇵🇹 sistema capitalista

🇮🇳 पूंजीवादी प्रणाली

🇩🇪 kapitalistisches System

🇮🇩 sistem kapitalis

🇺🇦 капіталістична система

🇵🇱 system kapitalistyczny

🇯🇵 資本主義システム (shihon shugi shisutemu)

🇫🇷 système capitaliste

🇪🇸 sistema capitalista

🇹🇷 kapitalist sistem

🇰🇷 자본주의 시스템 (jabonjuui siseutem)

🇸🇦 النظام الرأسمالي (al-nizam al-ra'smali)

🇨🇿 kapitalistický systém

🇸🇰 kapitalistický systém

🇨🇳 资本主义制度 (zīběn zhǔyì zhìdù)

🇸🇮 kapitalistični sistem

🇮🇸 kapítalískt kerfi

🇰🇿 капиталистік жүйе (kapitalistik zhüye)

🇬🇪 კაპიტალისტური სისტემა (kapitalisturi sistema)

🇦🇿 kapitalist sistem

🇲🇽 sistema capitalista

Etymology

The capitalist system traces its origins back to the Industrial Revolution in the 18th and 19th centuries, when technological advancements and the rise of capitalism led to a shift from agrarian economies to industrial economies. The development of capitalism was influenced by economic theories such as those of Adam Smith and David Ricardo. Over time, capitalism has evolved and taken different forms, with variations in government involvement and regulation.