capitalism
KAP-ih-tuh-liz-um
/ˈkæp.ə.t̬əl.ɪ.zəm/
An economic and political system in which trade and industry are controlled by private owners for profit, rather than by the state.
Emphasizes private property rights, competitive markets, and capital accumulation.
The story behind the word. Traces back to Latin caput (head), which led to capitale meaning head of cattle or property. In the 19th century, socialists popularized the term capitalism to describe the system where capital owners dominated economic life.
Word relationships
- free enterprise: Free enterprise emphasizes market liberty and lack of restriction, whereas capitalism highlights capital ownership.
- socialism: Socialism advocates public or worker ownership of the means of production.
Commonly confused with
- mercantilism: Mercantilism focuses on state wealth accumulation through exports and bullion, while capitalism focuses on private capital growth.
Word family
- capitalist (noun): A person who owns capital or supports capitalism.
- capitalistic (adjective): Characteristic of capitalism.
Collocations
- free-market capitalism
- unfettered capitalism
- crony capitalism
Example sentences
- "Modern capitalism relies heavily on stable legal frameworks to protect private contracts and corporate assets." Economic Theory
- "Critics argue that unrestrained capitalism can lead to wealth concentration and environmental decay." Social Critique
Memory hook
CAPITAL IS M-ine: Capital-is-m is an economic system based on holding capital and claiming ownership. Head of cattle, head of capital.
When not to use
Do not confuse with general commerce or trade; markets existed long before modern capitalism.
Fun facts
- Adam Smith never used the word 'capitalism' in The Wealth of Nations; he called it 'the system of natural liberty'.
Related words
Explore more words
privatization, accumulation, consumerism, libertarian, commercialization, deregulation
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