Meaning and Definition of Capitalism | Concept and What is.

What is Capitalism?

In general terms, you can define capitalism as the economic model that prevails in the world today, with some modifications. This economic system operates from private and companies that are responsible for the production and exchange of all types of goods, as well as services, through transactions involving prices and different markets.

The first time makes reference to this term was in the middle of the 19th century by Karl Marx, author of "Capital", and who criticized the concept and proposed as opposed the current known as "Marxism". However, nowadays is known also as "Free enterprise" and "Market economy"

As already mentioned, under capitalism, the means of production are privately owned, and it's an economic system that works through interaction that takes place between those who buy and those who sell in a particular market. Another feature of this economic model is related to the private owners of capital, both material and labour (workers, labour) who are free to seek the means to improve their well-being, so trying to get the most out of their property and its work force. On the other hand, consumers can choose freely and spend your money how and when they want, becoming thus the sovereignty of the consumer, in other words, the need for the producer to adapt to the demands of those who consume their products, what motivates the competition.

It is said that the first signs of capitalism takes place during the middle ages, what has been termed mercantile capitalism. Subsequently, its development continued with Industrial capitalism, emerged after the industrialization to be followed later by the financial capitalism, which is defined as the dominant economic system in Western countries in the 20th century. However, in addition to the recognition of these forms of capitalism, it is possible to find evidence of it in times much more ancient. Such is the case of the Roman Empire, in which every citizen had the authority to buy, sell and trade freely, and where in addition, the production took place in mass of various products, including oil lamps and amphorae. Something similar happened in the ancient Greece, where trade with different Nations flowed in free form, such as in our days between several countries in different continents.

Translated for educational purposes.