capitalism

American  

[kap-i-tl-iz-uhm] / ˈkæp ɪ tlˌɪz əm /

noun

1. an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.

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capitalism British  

/ ˈkæpɪtəˌlɪzəm /

noun

1. Also called: free enterprise.   private enterprise.  an economic system based on the private ownership of the means of production, distribution, and exchange, characterized by the freedom of capitalists to operate or manage their property for profit in competitive conditions Compare socialism

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capitalism Cultural  

1. An economic and political system characterized by a free market for goods and services and private control of production and consumption. (Compare socialism and communism.)

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Pop Culture

— The Intelligent Woman's Guide to Socialism and Capitalism: A treatise on economics and political science by Irish playwright George Bernard Shaw, first published in 1928. — The Intelligent Homosexual's Guide to Capitalism and Socialism with a Key to the Scriptures: 2009 play by Tony Kushner. The play's title was inspired by Shaw's book and Mary Baker Eddy's Science and Health with Key to the Scriptures. — Capitalism: A Love Story: 2009 documentary film written and directed by, and starring, Michael Moore. —Monopoly, the classic capitalism board game, from Hasbro. (“The success of Monopoly mirrors the success of capitalism,” noted Philip E. Orbanes, in his 2006 book, Monopoly: The World's Most Famous Game. )

Other Word Forms

• anticapitalism
  noun
• procapitalism
  noun

Etymology

Origin of capitalism

First recorded in 1850–55; capital ¹ + -ism

Compare meaning

How does capitalism compare to similar and commonly confused words? Explore the most common comparisons:

• mercantilism vs. capitalism
• market economy vs. capitalism
• fascism vs. capitalism
• free enterprise vs. capitalism

Explanation

Capitalism is an economic system featuring the private ownership of business wealth and the free and unfettered operation of trade markets. Capital is usually understood to be money that is put into a business, accumulated by a business, or used in some way to produce more money. In a capitalist economy, the capital is owned by private individuals, as opposed to the government or state (as in socialism or communism). Another important aspect of capitalism is the "free market," where in theory natural competition always leads to innovation and price controls.

Example Sentences

Guest: Jonathan M. Katz, journalist and the author of Gangsters of Capitalism: Smedley Butler, the Marines, and the Making and Breaking of America’s Empire and author of theracket.news newsletter.

From Slate • Jan. 12, 2026

Jonathan Levy, author of “Ages of American Capitalism: A History of the United States,” is a historian and professor at the center for history at Sciences Po in Paris.

From The Wall Street Journal • Oct. 13, 2025

They also had a great symbolic effect, says Mircea Raianu, historian and author of Tata: The Global Corporation That Built Indian Capitalism.

From BBC • Oct. 10, 2024

Hansen, who is Black and specializes in addiction psychiatry, also co-authored the book “Whiteout: How Racial Capitalism Changed the Color of Opioids in America.”

From Los Angeles Times • May 21, 2024

“But this is groovy. Capitalism plus publicity equals monster commerce.”

From "Lawn Boy Returns" by Gary Paulsen