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capitalism

World Encyclopedia | 2005 | © World Encyclopedia 2005, originally published by Oxford University Press 2005. (Hide copyright information) Copyright

capitalism Economic system in which property and the means of production are privately owned. Capitalism is based on profit motive, free enterprise, efficiency through competition and a notion of freedom of choice. It was first articulated by Adam Smith in his treatise The Wealth of Nations (1776). Its development dates from the Industrial Revolution and the rise of the bourgeoisie. In practice, capitalist governments participate in economic regulation although to a lesser extent than a government within communism or socialism. See also free trade; Keynes, John Maynard; laissez-faire; Marxism; mercantilism; monetarism

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