Capitalism

/ˈkæpɪtəlɪzəm/

Meaning & Definition

noun

An economic system characterized by private or corporate ownership of capital goods, and the production of goods and services for profit in a competitive marketplace.

Capitalism has driven innovation and economic growth in many countries.

A political and economic system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.

Under capitalism, individuals have the freedom to start their own businesses.

A broad term that can encompass various economic theories and practices that prioritize individual investment and profit over state control.

Critics of capitalism argue that it leads to inequality and exploitation.

Etymology

The term 'capitalism' originated in the mid-19th century, derived from the word 'capital,' which refers to wealth or assets.

Common Phrases and Expressions

free market

An economic system where prices are determined by unrestricted competition between privately owned businesses.

laissez-faire

An economic philosophy of leaving things to take their own course, without interference.

trickle-down economics

An economic theory that holds that benefits for the wealthy will ultimately benefit poorer members of society.

Related Words

capital

Wealth in the form of money or assets owned by a person or organization.

entrepreneurship

The process of starting and running a new business, often in a capitalist economy.

privatization

The transfer of ownership of a business, enterprise, or public service from the government to private individuals.

Slang Meanings

The system that prioritizes profit over social welfare.

In this town, capitalism has turned everything into a business opportunity.

The game of accumulating wealth through competition.

She said life is just capitalism—some people win, and others lose.