What does "capitalism" mean?

1. (economic system) a system where individuals and companies own businesses and property, and compete to make money.

How do you use "capitalism"?

Often used uncountably to refer to the general concept, but can be countable when referring to specific national varieties.

capitalism

US //ˈkæpɪtəˌɫɪzəm// UK //kˈæpɪtəlˌɪzəm// cap·i·tal·ism

1 economic system (n.)
B2 Upper Intermediate Academic

a system where individuals and companies own businesses and property, and compete to make money.

an economic and social system based on the private ownership of the means of production and their operation for profit within a market economy.

Example

In a system of capitalism, businesses compete with each other to offer the best prices to customers.

Example

Critics of global capitalism argue that the system prioritises short-term corporate profits over long-term environmental sustainability and social equity.

Usage

Often used uncountably to refer to the general concept, but can be countable when referring to specific national varieties.

Teacher's tip

While often associated with 'democracy', capitalism refers specifically to the economic structure rather than the political voting system.
- free enterprise
- private enterprise
- free market
- socialism
- communism

Origin

Borrowed from French capitalisme (“the condition of one who is rich”); equivalent to capital + -ism. Derived from Proto-Indo-European káput (“head”), ultimately from Proto-Indo-European kap-. First used in English by novelist William Thackeray in The Newcomes [1854-1855].

Idioms1 entry

01
crony capitalism
A form of capitalism in which success in business depends on corrupt close relationships with government officials, often implying favouritism.