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'''Capitalism''' is an [[economic]] system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled.[http://www.blackcrayon.com/library/dictionary/?term=capitalism] Through capitalism, the land, labor, and capital are owned, operated, and traded by private individuals either singly or jointly, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary [[private]] [[decision]] in a market economy. A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. In a "capitalist state", private [[rights]] and [[property]] relations are protected by the rule of [[law]] of a limited regulatory framework. In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market though the state may provide some [[public]] goods and infrastructure.

'''Capitalism''' is an [[economic]] system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled.[https://www.blackcrayon.com/library/dictionary/?term=capitalism] Through capitalism, the land, labor, and capital are owned, operated, and traded by private individuals either singly or jointly, and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary [[private]] [[decision]] in a market economy. A distinguishing feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell the use of it to employers. In a "capitalist state", private [[rights]] and [[property]] relations are protected by the rule of [[law]] of a limited regulatory framework. In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market though the state may provide some [[public]] goods and infrastructure.

Some consider [[laissez-faire]] to be "pure capitalism." [[Laissez-faire]] (French, "leave to do (by itself)"), signifies minimizing or eliminating state interference in economic affairs and the competitive process, allowing the free play of supply and demand. Laissez-faire capitalism has never existed in practice.[http://tmh.floonet.net/articles/strombrg.html][http://mises.org/humanaction/|contribution][http://mises.org/humanaction/chap15sec3.asp] Because all large economies today have a mixture of [[private]] and [[public]] ownership and control, some feel that the term "mixed economies" more precisely describes most contemporary economies. In the "capitalist mixed economy", the state intervenes in market activity and provides many services."all of the capitalistic societies of the West have mixed economies that temper capitalism" with interventionist government regulation and social programs.  

Some consider [[laissez-faire]] to be "pure capitalism." [[Laissez-faire]] (French, "leave to do (by itself)"), signifies minimizing or eliminating state interference in economic affairs and the competitive process, allowing the free play of supply and demand. Laissez-faire capitalism has never existed in practice.[https://tmh.floonet.net/articles/strombrg.html][https://mises.org/humanaction/|contribution][https://mises.org/humanaction/chap15sec3.asp] Because all large economies today have a mixture of [[private]] and [[public]] ownership and control, some feel that the term "mixed economies" more precisely describes most contemporary economies. In the "capitalist mixed economy", the state intervenes in market activity and provides many services."all of the capitalistic societies of the West have mixed economies that temper capitalism" with interventionist government regulation and social programs.  

During the last century capitalism has often been contrasted with planned economy|centrally planned economies. The central axiom of Capitalism is that the best allocation of resources is achieved through consumers having free [[choice]], and producers responding accordingly to meet collective consumer demand. This contrasts with planned economies in which the state directs what shall be produced. A consequence is the [[belief]] that privatizatio of previously state-provided services will tend to achieve a more efficient delivery thereof. Further implications are usually in favor of free trade, and abolition of subsidies. Although [[individual]]s and [[group]]s must act [[rational]]y in any [[society]] for their own [[good]], the consequences of both rational and irrational actions are said to be more readily apparent in a capitalist society.

During the last century capitalism has often been contrasted with planned economy|centrally planned economies. The central axiom of Capitalism is that the best allocation of resources is achieved through consumers having free [[choice]], and producers responding accordingly to meet collective consumer demand. This contrasts with planned economies in which the state directs what shall be produced. A consequence is the [[belief]] that privatizatio of previously state-provided services will tend to achieve a more efficient delivery thereof. Further implications are usually in favor of free trade, and abolition of subsidies. Although [[individual]]s and [[group]]s must act [[rational]]y in any [[society]] for their own [[good]], the consequences of both rational and irrational actions are said to be more readily apparent in a capitalist society.

Other terms sometimes used for capitalism, include:

Other terms sometimes used for capitalism, include:

*commercialism "capitalism." Roget's 21st Century Thesaurus, Third Edition. Philip Lief Group 2008.</ref>

*commercialism "capitalism." Roget's 21st Century Thesaurus, Third Edition. Philip Lief Group 2008.</ref>

*economic individualism=[http://mises.org/story/2648 Isaiah Berlin on Negative Freedom]. [http://mises.org/efandi/ch42.asp]

*economic individualism=[https://mises.org/story/2648 Isaiah Berlin on Negative Freedom]. [https://mises.org/efandi/ch42.asp]

*free cooperation[http://mises.org/books/socialism/part4_ch29.aspx]

*free cooperation[https://mises.org/books/socialism/part4_ch29.aspx]

*free-enterprise economy Roget's 21st Century Thesaurus, Third Edition. Philip Lief Group 2008.</ref>

*free-enterprise economy Roget's 21st Century Thesaurus, Third Edition. Philip Lief Group 2008.</ref>

*free exchange [http://mises.org/story/2382 The Fairness of "Unequal" Exchange]</ref>

*free exchange [https://mises.org/story/2382 The Fairness of "Unequal" Exchange]</ref>

*free-market system [http://mises.org/story/1973 What Is the Free Market?]"

*free-market system [https://mises.org/story/1973 What Is the Free Market?]"

*[[individualism]]

*[[individualism]]

*market economy [http://unabridged.merriam-webster.com/cgi-bin/unabridged?va=market%20economy "market economy"],

*market economy [https://unabridged.merriam-webster.com/cgi-bin/unabridged?va=market%20economy "market economy"],

*market liberalism[http://www.cato.org/about.php] [http://www.cato.org/university/module10.html]

*market liberalism[https://www.cato.org/about.php] [https://www.cato.org/university/module10.html]

*mutual aid [http://www.mutualist.org/ Mutualist.org]. "...based on voluntary cooperation, free exchange, or mutual aid."

*mutual aid [https://www.mutualist.org/ Mutualist.org]. "...based on voluntary cooperation, free exchange, or mutual aid."

*open competition [http://mises.org/story/1780 Free Trade and the American Political Tradition].

*open competition [https://mises.org/story/1780 Free Trade and the American Political Tradition].

*open cooperation[http://www.mises.org/story/1959 The Rise and Fall of the City]

*open cooperation[https://www.mises.org/story/1959 The Rise and Fall of the City]

*open exchange[https://mises.org/story/777 A Modest Craft]

*open exchange[https://mises.org/story/777 A Modest Craft]

*unhampered market [[Ludwig von Mises]]. [http://mises.org/humanaction/chap27sec4.asp XXVII: [http://mises.org/story/557][http://mises.org/rothbard/mes/chap2a.asp]

*unhampered market [[Ludwig von Mises]]. [https://mises.org/humanaction/chap27sec4.asp XXVII: [https://mises.org/story/557][https://mises.org/rothbard/mes/chap2a.asp]

*voluntary competition [http://mutualist.blogspot.com/2005/10/richard-k-moore-escaping-matrix.html]  

*voluntary competition [https://mutualist.blogspot.com/2005/10/richard-k-moore-escaping-matrix.html]  

*voluntary market [http://mises.org/freemarket_detail.aspx?control=572 The Democracy of the Market]

*voluntary market [https://mises.org/freemarket_detail.aspx?control=572 The Democracy of the Market]

The [[etymology]] of the word ''capital'' has roots in the trade and ownership of animals. The [[Latin]] root of the ''capital'' is ''capitalis'', from the proto-Indo-European ''kaput'', which means "head", this being how wealth was measured. The terms chattel and cattle itself also derive from this same origin.

The [[etymology]] of the word ''capital'' has roots in the trade and ownership of animals. The [[Latin]] root of the ''capital'' is ''capitalis'', from the proto-Indo-European ''kaput'', which means "head", this being how wealth was measured. The terms chattel and cattle itself also derive from this same origin.

According to the ''[[Oxford English Dictionary]]'',[http://www.archive.org/details/oedvol02 A New English Dictionary on Historical Principles]. ''Oxford English Press''. Vol 2. page 94. ''capitalism'' was first used by novelist William Makepeace Thackeray in 1854, by which he meant by having ownership of capital. Arthur Young first used the term ''capitalist'' of his economic surveys in his work ''Travels in France'' (1792).[http://oll.libertyfund.org/index.php?option=com_staticxt&staticfile=show.php%3Ftitle=292&Itemid=27 Travels in France] [[Samuel Taylor Coleridge]] an English [[poet]], used ''capitalist'' in his work ''Table Talk'' (1823),[http://books.google.com/books?id=ma-4W-XiGkIC&printsec=titlepage&dq=%22capitalists+for+having+labor+at+demand Tabel The Complete Works of Samuel Taylor Coleridge]. page 267  and [[Benjamin Disraeli]] used ''capitalist'' in the 1845 work 'Sybil''.

According to the ''[[Oxford English Dictionary]]'',[https://www.archive.org/details/oedvol02 A New English Dictionary on Historical Principles]. ''Oxford English Press''. Vol 2. page 94. ''capitalism'' was first used by novelist William Makepeace Thackeray in 1854, by which he meant by having ownership of capital. Arthur Young first used the term ''capitalist'' of his economic surveys in his work ''Travels in France'' (1792).[https://oll.libertyfund.org/index.php?option=com_staticxt&staticfile=show.php%3Ftitle=292&Itemid=27 Travels in France] [[Samuel Taylor Coleridge]] an English [[poet]], used ''capitalist'' in his work ''Table Talk'' (1823),[https://books.google.com/books?id=ma-4W-XiGkIC&printsec=titlepage&dq=%22capitalists+for+having+labor+at+demand Tabel The Complete Works of Samuel Taylor Coleridge]. page 267  and [[Benjamin Disraeli]] used ''capitalist'' in the 1845 work 'Sybil''.

[[Pierre-Joseph Proudhon]] used ''capitalist'' is his first work ''What is Property?'' (1840) to refer to the owners of capital. [[Karl Marx]] and [[Friedrich Engels]] also used ''capitalist'' (''Kapitalist'') as a [[private]] owner of capital in ''[[The Communist Manifesto]]'' (1848), and referred the ''capitalistic system'' (''kapitalistischen System'') Karl Marx. Chapter Sixteen: Absolute and Relative Surplus-Value. ''[[Das Kapital]]''.  

[[Pierre-Joseph Proudhon]] used ''capitalist'' is his first work ''What is Property?'' (1840) to refer to the owners of capital. [[Karl Marx]] and [[Friedrich Engels]] also used ''capitalist'' (''Kapitalist'') as a [[private]] owner of capital in ''[[The Communist Manifesto]]'' (1848), and referred the ''capitalistic system'' (''kapitalistischen System'') Karl Marx. Chapter Sixteen: Absolute and Relative Surplus-Value. ''[[Das Kapital]]''.  

According to the ''OED'', Carl Adolph Douai, a German-American [[ssocialist]] and [[abolitionist]], used ''private capitalism'' in 1863. A work entitled ''Better Times'' (1877) and an unknown author in 1884 of the ''Pall Mall Gazette'' also used ''capitalism''

According to the ''OED'', Carl Adolph Douai, a German-American [[ssocialist]] and [[abolitionist]], used ''private capitalism'' in 1863. A work entitled ''Better Times'' (1877) and an unknown author in 1884 of the ''Pall Mall Gazette'' also used ''capitalism''

However, the first use of ''capitalism'' to describe the production system was the German economist Werner Sombart, in his 1902 book ''The Jews and Modern Capitalism'' (''Die Juden und das Wirtschaftsleben''). Sombart's close friend and colleague, [[Max Weber]], also used capitalism in his 1904 book ''The Protestant Ethic and the Spirit of Capitalism'' (''Die protestantische Ethik und der Geist des Kapitalismus'').[http://en.wikipedia.org/wiki/Capitalism]

However, the first use of ''capitalism'' to describe the production system was the German economist Werner Sombart, in his 1902 book ''The Jews and Modern Capitalism'' (''Die Juden und das Wirtschaftsleben''). Sombart's close friend and colleague, [[Max Weber]], also used capitalism in his 1904 book ''The Protestant Ethic and the Spirit of Capitalism'' (''Die protestantische Ethik und der Geist des Kapitalismus'').[https://en.wikipedia.org/wiki/Capitalism]

[[Category: Economics]]

[[Category: Economics]]