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Capitalism

A Dictionary of Contemporary World History | 2004 | | © A Dictionary of Contemporary World History 2004, originally published by Oxford University Press 2004. (Hide copyright information) Copyright

Capitalism An economic system characterized by the private ownership of production and the regulation of supply and demand through the price mechanism in a free market, as described by Adam Smith (b. 1723, d. 1790) in his book Inquiry into the Nature and Causes of the Wealth of Nations (1776). The term has been used by Marxists to describe an epoch in the evolution of history from a feudal to an ideal, Communist society. However, the longevity of capitalism has been proven by the ultimate failure of Communist countries to replace the free market with the central planning of supply and demand, and their inability to create sufficient incentives for individual enterprise apart from private property.

Keynesianism; monetarism; globalization

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