Capitalism

{{Economic systems sidebar|expanded=by ideology}}

{{Economic systems sidebar|expanded=by ideology}}

'''Capitalism''' is an [[economic system]] based on the private ownership of the [[meansndjsjjs of production]] and its use for the purpose of obtaining [[Profit (economics)|profit]].{{cite book |last1=Rosser |first1=Mariana V. |last2=Rosser |first2=J Barkley |title=Comparative Economics in a Transforming World Economy |publisher=MIT Press|year=2003|isbn=978-0-262-18234-8|page=7|quote=In capitalist economies, land and produced means of production (the capital stock) are owned by private individuals or groups of private individuals organized as firms.}}{{cite journal|last1=Sternberg |first1=Elaine |title=Defining Capitalism |journal=Economic Affairs|year=2015|volume=35 |issue=3 |pages=380–396 |doi=10.1111/ecaf.12141 |s2cid=219373247}} This socioeconomic system has developed historically in several stages, and is defined by a number of constituent elements: [[private property]], [[profit motive]], [[capital accumulation]], [[Competition (economics)|competitive markets]], [[commodification]], [[Wage labour|wage labor]], and an emphasis on innovation and economic growth.{{cite book |last1=Heilbroner |first1=Robert L. |title=The New Palgrave Dictionary of Economics |year=2018 |publisher=Palgrave Macmillan|location=London|isbn=978-1-349-95189-5 |pages=1378–1389 |edition=3rd |chapter-url=https://link.springer.com/referenceworkentry/10.1057/978-1-349-95189-5_154 |chapter=Capitalism |doi=10.1057/978-1-349-95189-5_154}}{{cite book |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |year=2013|title=The Global Economy and its Economic Systems |publisher=South-Western College Publishing |page=41 |isbn=978-1-285-05535-0 |quote=Capitalism is characterized by private ownership of the factors of production. Decision making is decentralized and rests with the owners of the factors of production. Their decision making is coordinated by the market, which provides the necessary information. Material incentives are used to motivate participants.}} Capitalist economies may experience [[business cycle]]s of [[economic expansion]] followed by [[recession]]s.{{cite journal |last1=Hodrick |first1=R. |last2=Prescott |first2=E. |year=1997 |title=Postwar US business cycles: An empirical investigation |url=http://www.kellogg.northwestern.edu/research/math/papers/451.pdf |journal=Journal of Money, Credit and Banking |volume=29 |issue=1 |pages=1–16 |doi=10.2307/2953682 |jstor=2953682 |s2cid=154995815}}

'''Capitalism''' is an [[economic system]] based on the private ownership of the [[means of production]] and its use for the purpose of obtaining [[Profit (economics)|profit]].{{cite book |last1=Rosser |first1=Mariana V. |last2=Rosser |first2=J Barkley |title=Comparative Economics in a Transforming World Economy |publisher=MIT Press|year=2003|isbn=978-0-262-18234-8|page=7|quote=In capitalist economies, land and produced means of production (the capital stock) are owned by private individuals or groups of private individuals organized as firms.}}{{cite journal|last1=Sternberg |first1=Elaine |title=Defining Capitalism |journal=Economic Affairs|year=2015|volume=35 |issue=3 |pages=380–396 |doi=10.1111/ecaf.12141 |s2cid=219373247}} This socioeconomic system has developed historically in several stages, and is defined by a number of constituent elements: [[private property]], [[profit motive]], [[capital accumulation]], [[Competition (economics)|competitive markets]], [[commodification]], [[Wage labour|wage labor]], and an emphasis on innovation and economic growth.{{cite book |last1=Heilbroner |first1=Robert L. |title=The New Palgrave Dictionary of Economics |year=2018 |publisher=Palgrave Macmillan|location=London|isbn=978-1-349-95189-5 |pages=1378–1389 |edition=3rd |chapter-url=https://link.springer.com/referenceworkentry/10.1057/978-1-349-95189-5_154 |chapter=Capitalism |doi=10.1057/978-1-349-95189-5_154}}{{cite book |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |year=2013|title=The Global Economy and its Economic Systems |publisher=South-Western College Publishing |page=41 |isbn=978-1-285-05535-0 |quote=Capitalism is characterized by private ownership of the factors of production. Decision making is decentralized and rests with the owners of the factors of production. Their decision making is coordinated by the market, which provides the necessary information. Material incentives are used to motivate participants.}} Capitalist economies may experience [[business cycle]]s of [[economic expansion]] followed by [[recession]]s.{{cite journal |last1=Hodrick |first1=R. |last2=Prescott |first2=E. |year=1997 |title=Postwar US business cycles: An empirical investigation |url=http://www.kellogg.northwestern.edu/research/math/papers/451.pdf |journal=Journal of Money, Credit and Banking |volume=29 |issue=1 |pages=1–16 |doi=10.2307/2953682 |jstor=2953682 |s2cid=154995815}}

Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include ''[[Laissez-faire#Capitalism|laissez-faire]]'' or [[Free market#Capitalism|free-market capitalism]], [[state capitalism]], and [[welfare capitalism]]. Different forms of capitalism feature varying degrees of [[free market]]s, [[State ownership|public ownership]],{{cite book |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |title=The Global Economy and its Economic Systems |publisher=South-Western College Publishing|year=2013|isbn=978-1-285-05535-0|page=107|quote=Real-world capitalist systems are mixed, some having higher shares of public ownership than others. The mix changes when privatization or nationalization occurs. Privatization is when property that had been state-owned is transferred to private owners. [[Nationalization]] occurs when privately owned property becomes publicly owned.}} obstacles to free competition, and state-sanctioned [[Social policy|social policies]]. The degree of competition in [[Market (economics)|markets]] and the role of [[Market intervention|intervention]] and [[Regulatory economics|regulation]], as well as the scope of state ownership, vary across different models of capitalism.{{cite book |title=Macmillan Dictionary of Modern Economics |edition=3|year=1986|page=54}}{{cite magazine |last=Bronk |first=Richard |title=Which model of capitalism |url=https://oecdobserver.org/news/archivestory.php/aid/345/Which_model_of_capitalism_.html |url-status=live |magazine=OECD Observer |publisher=OECD |year=2000 |volume=1999 |issue=221–222 |pages=12–15 |archive-url=https://web.archive.org/web/20180406200423/http://oecdobserver.org/news/archivestory.php/aid/345/Which_model_of_capitalism_.html |archive-date=6 April 2018 |access-date=6 April 2018}} The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing economies in the world at present are [[Mixed economy|mixed economies]] that combine elements of free markets with state intervention and in some cases [[economic planning]].

Economists, historians, political economists, and sociologists have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include ''[[Laissez-faire#Capitalism|laissez-faire]]'' or [[Free market#Capitalism|free-market capitalism]], [[state capitalism]], and [[welfare capitalism]]. Different forms of capitalism feature varying degrees of [[free market]]s, [[State ownership|public ownership]],{{cite book |last1=Gregory |first1=Paul |last2=Stuart |first2=Robert |title=The Global Economy and its Economic Systems |publisher=South-Western College Publishing|year=2013|isbn=978-1-285-05535-0|page=107|quote=Real-world capitalist systems are mixed, some having higher shares of public ownership than others. The mix changes when privatization or nationalization occurs. Privatization is when property that had been state-owned is transferred to private owners. [[Nationalization]] occurs when privately owned property becomes publicly owned.}} obstacles to free competition, and state-sanctioned [[Social policy|social policies]]. The degree of competition in [[Market (economics)|markets]] and the role of [[Market intervention|intervention]] and [[Regulatory economics|regulation]], as well as the scope of state ownership, vary across different models of capitalism.{{cite book |title=Macmillan Dictionary of Modern Economics |edition=3|year=1986|page=54}}{{cite magazine |last=Bronk |first=Richard |title=Which model of capitalism |url=https://oecdobserver.org/news/archivestory.php/aid/345/Which_model_of_capitalism_.html |url-status=live |magazine=OECD Observer |publisher=OECD |year=2000 |volume=1999 |issue=221–222 |pages=12–15 |archive-url=https://web.archive.org/web/20180406200423/http://oecdobserver.org/news/archivestory.php/aid/345/Which_model_of_capitalism_.html |archive-date=6 April 2018 |access-date=6 April 2018}} The extent to which different markets are free and the rules defining private property are matters of politics and policy. Most of the existing economies in the world at present are [[Mixed economy|mixed economies]] that combine elements of free markets with state intervention and in some cases [[economic planning]].