definition of capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are privately owned.[1][2] Through capitalism, the land, labor, and capital are owned, operated, and traded for the purpose of generating profits, without force or fraud, by private individuals either singly or jointly,[3][4] and investments, distribution, income, production, pricing and supply of goods, commodities and services are determined by voluntary private decision in a market economy.[5] 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.[3][6] In a "capitalist state", private rights and property relations are protected by the rule of law of a limited regulatory framework.[7][8] In the modern capitalist state, legislative action is confined to defining and enforcing the basic rules of the market,[7][8] though the state may provide some public goods and infrastructure.[9]

An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.

Economic system characterized by the following: private property ownership exists; individuals and companies are allowed to compete for their own economic gain; and free market forces determine the prices of goods and services. Such a system is based on the premise of separating the state and business activities. Capitalists believe that markets are efficient and should thus function without interference, and the role of the state is to regulate and protect.