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

The 17-year-old was one of China's many newly minted entrepreneurs as capitalism took off under the watchful eye of its Communist Party rulers.

From BBC • Apr. 26, 2026

Thompson’s fascination with American pop culture developed in part from her youth in post–Celtic Tiger Ireland, when leaders like Bertie Ahern were implementing economic policies shaped by American capitalism.

From Los Angeles Times • Apr. 15, 2026

Hooray for the tort system—words you might not expect to read if you don’t remember that a properly functioning legal system helps capitalism proceed without force or fraud.

From The Wall Street Journal • Apr. 14, 2026

The governance issues he confronted—conflicts of interest, self-dealing, and the temptation to look the other way—are recurring features of modern capitalism, perhaps now more than ever.

From Barron's • Apr. 7, 2026

In it, I attempted to trace the evolution of economic man from the earliest times up to the present, sketching out the path from ancient communal societies to feudalism to capitalism and socialism.

From "Long Walk to Freedom" by Nelson Mandela