Capitalism

Capitalism is an economic system in which the means of production are privately owned and operated for a private profit; decisions regarding supply, demand, price, distribution, and investments are made by private actors in the free market; profit is distributed to owners who invest in businesses, and wages are paid to workers employed by businesses and companies.
There is no consensus on the precise definition of capitalism, nor how the term should be used as an analytical category.[1] There is, however, little controversy that private ownership of the means of production, creation of goods or services for profit in a market, and prices and wages are elements of capitalism.[2] There are a variety of historical cases to which the designation is applied, varying in time, geography, politics and culture.[3] Some define capitalism as where all the means of production are privately owned, and some define it more loosely where merely "most" are in private hands —while others refer to the latter as a mixed economy biased toward capitalism. More fundamentally, others define capitalism as a system where production is carried out to generate profit, or exchange-value, regardless of legal ownership titles. Private ownership in capitalism implies the right to control property, including determining how it is used, who uses it, whether to sell or rent it, and the right to the revenue generated by the property.[4]
Economists, political economists and historians have taken different perspectives on the analysis of capitalism. Economists usually emphasize the degree that government does not have control over markets (laissez faire), and on property rights.[5][6] Most political economists emphasize private property, power relations, wage labor and class.[7] There is general agreement that capitalism encourages economic growth.[8] The extent to which different markets are free, as well as the rules defining private property, is a matter of politics and policy, and many states have what are termed mixed economies.[7]
Capitalism, as a deliberate economic system, developed incrementally from the 16th century in Europe,[9] although proto-capitalist organizations existed in the ancient world, and early aspects of merchant capitalism flourished during the Late Middle Ages.[10][11][12] Capitalism became dominant in the Western world following the demise of feudalism.[12] Capitalism gradually spread throughout Europe, and in the 19th and 20th centuries, it provided the main means of industrialization throughout much of the world.[3] Today the capitalist system is the world's most dominant form of economic model.