Capitalism
Capitalism is based on the premises of laissez faire, where private individuals are free to exchange goods or services without intervention from the State, hence the term “free market.”[1] The extent to which different markets are free, as well as rules determining what may and may not be private property, is a matter of politics and policy and many states have what are termed "mixed economies."[2] Mixed economies refer to capitalism being mixed with central planning or statism, with statism being the ideological opposite of capitalism. [3] Scholars in the social sciences, including historians, economic sociologists, economists, anthropologists and philosophers have debated over how to define capitalism, however there is little controversy that private ownership of the means of production, creation of goods or services for profit in a market, paid employment, and prices and wages set according to market supply and demand, are elements of capitalism.[4]
Capitalism as a system developed incrementally from the 16th century in Europe, although capitalist organization existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages.[5][6][7] Capitalism became dominant in the Western world following the demise of feudalism.[7] Capitalism gradually spread throughout Europe, and in the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world.[8]
There is no consensus on capitalism nor how it should be used as an analytical category.[9] There are a variety of historical cases over which it is applied, varying in time, geography, politics and culture.[8] Economists, political economists and historians have taken different perspectives on the analysis of capitalism.
