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Capitalism

Part of a series on
Economic systems

Ideologies and theories

Anarchist Â· Capitalism
Communist Â· Corporatism
Fascist Â· Islamic
Laissez-faire Â· Market economy
Mercantilism Â· Socialist

Sectors and systems

Closed Â· Dual Â· Gift
Informal Â· Mixed Â· Natural
Open Â· Participatory Â· Planned
Subsistence Â· Underground
Virtual

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Newly industrialized country
Palace economy
Plantation economy
Social market economy
Token economy
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Transition economy

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Capitalism is an economic system in which all property is owned by either private individuals or a corporation. Private ownership is sometimes used as a synonym for individual ownership, however the term "private" may also be used to refer to collective ownership of individuals in the form of corporate ownership. Therefore, "privately owned" in the context of this definition means not owned or controlled by the state. [1] and operated for profit,[2] and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a market economy. It is usually considered to involve the right of individuals and corporations to trade, using money, in goods, services (including finance), labor and land.

Capitalist economic practices became institutionalized in England between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world, and early forms of merchant capitalism flourished during the Middle Ages.[3][4] Capitalism has been dominant in the Western world since the end of feudalism.[3] From England it gradually spread throughout Europe, across political and cultural frontiers. In the 19th and 20th centuries, capitalism provided the main, but not exclusive, means of industrialization throughout much of the world.[5]

The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture, and some feel that the term "mixed economies" more precisely describes most contemporary economies.[6][7] Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation.[5] During the last century capitalism has been contrasted with centrally planned economies, such as Marxist economies.

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