Word

capitalism

noun B2

UK /ˈkapɪt(ə)lɪz(ə)m/

US /ˈkæp.ə.təlˌɪzm̩/

Meanings

noun

an economic system in which businesses and property are mostly privately owned and run for profit, with prices influenced by competition and markets

capitalism: an economic system in which businesses and property are mostly privately owned and run for profit, with prices i…

noun

the idea or practice of organizing society around private ownership, investment, and profit-making

Definition

Capitalism is an economic system in which private individuals or companies own businesses and compete to make a profit.

Capitalism is an economic system where most property and businesses are privately owned rather than controlled by the government. Goods and services are produced and sold in markets, and prices are influenced by supply and demand. People and companies try to earn profits, and competition is common. Governments may still regulate some parts of the economy, but private ownership remains central.

Examples

Capitalism encourages competition between companies.
Some people argue that capitalism creates inequality.
The country shifted toward capitalism in the 1990s.
She wrote a paper comparing capitalism and socialism.

Common mistake

Learners sometimes confuse capitalism with capital (money), but capitalism refers to the whole economic system, not just wealth.