Capitalism - English Definition & Meaning

Definition

Capitalism is an economic system based on private ownership of the means of production. 💸 People and companies, not the government, own factories, businesses, and resources. Competition drives innovation and efficiency, as businesses try to attract customers. The goal is to make a profit. Think of a lemonade stand run by a kid – that’s a simple example of capitalism. It encourages entrepreneurship but can also lead to economic inequality. It's a dominant economic system in many countries today.

Etymology

The word "capitalism" comes from the word "capital," referring to wealth or assets used for production. The term emerged in the 19th century to describe the growing importance of capital in economic systems. It was often used in contrast to feudalism and socialism. It reflects the shift from land-based wealth to industrial and financial assets.

Related Words

Examples

• "The country's rapid economic growth was attributed to its embrace of capitalism."
• "Critics argued that unregulated capitalism led to environmental damage and social inequality."
• "The game simulated a capitalist economy, where players could build businesses and compete for profits."
• "The documentary explored the history and impact of capitalism on global society."

Encouragement

Understanding capitalism helps you make informed decisions as a consumer, worker, and investor. Think critically about the role of business in society. Advocate for policies that promote economic fairness and sustainability. 🧐

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