• Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector, in which labor is paid only according to wages.

  • Capitalism depends on respect for private property rights, which provide incentives for investment and the productive use of productive capital.
  • Capitalism has historically developed out of the former systems of feudalism and mercantilism in Europe and has dramatically expanded industrialization and widespread availability of consumer goods for the mass market.
  • Pure capitalism can be contrasted with pure socialism (where all means of production are collectively or state-owned) and a mixed economy (which is on a continuum between pure capitalism and pure socialism).
  • The actual practice of capitalism usually involves some degree of so-called “clan capitalism” due to business demands for favorable government intervention and government incentives to intervene in the economy.