Definition

An economic system where businesses and properties are owned by individuals or companies, and profits are made through competition in a free market.

Example

Many countries operate under a system of capitalism, where private ownership drives economic growth.

Conversation

I was reading about capitalism and how it shapes economies around the world.

That's interesting! What did you learn about it?

Well, it seems like capitalism encourages innovation but can also lead to inequality.

Yeah, it's a double-edged sword for sure.

Synonyms & Antonyms

Root Explanation

Capitalism is formed from "capital" (from Latin "capitale", meaning property or wealth) and "-ism" (a suffix used to denote a system or doctrine). The term refers to an economic system characterized by private ownership of capital and the means of production.

Memory Tip

Think of 'capital' as referring to wealth or property, and '-ism' as indicating a system. This helps you remember that capitalism is a system based on private ownership of wealth.

Visually Confused Words