Capitalism

In common usage capitalism refers to an economic system in which all or most of the means of production are privately owned and operated, and where investment and the production, distribution and prices of commodities (goods and services) are determined privately in a free market, rather than by the state. Those in control of the means of production generally run them for monetary profit. For examples of how capitalism has been defined by various sources, see .

Etymology

The etymology of the word capital has roots in the trade and ownership of animals. The Latin root of the word capital is capitalis, from the proto-Indo-European kaput, which means "head", this being how wealth was measured. The more heads of cattle, the better. The terms chattel (meaning goods, animals, or slaves) and even cattle itself also derive from this same origin.

Related Topics:
Latin - Proto-Indo-European

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The lexical connections between animal trade and economics can also be seen in the names of many currencies and words about money: fee (faihu), rupee (rupya), buck (a deerskin), pecuniary (pecu), stock (livestock), and peso (pecu or pashu) all derive from animal-trade origins.

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The first use of the word "capitalism" in English is by novelist Thackeray in 1854, by which he meant having ownership of capital. In 1867 Proudhon used the term "capitalist" to refer to owners of capital, and Marx and Engels refer to the "capitalist form of production" ("kapitalistische Produktionsform") and in Das Kapital to "Kapitalist", "capitalist" (meaning a private owner of capital). By the early 20th century the term had become widespread, as evidenced by Max Weber's use of the term in his The Protestant Ethic and the Spirit of Capitalism in 1904, and Werner Sombart's 1906 Modern Capitalism. The OED cites the use of the term "private capitalism" by Karl Daniel Adolf Douai, German-American socialist and abolitionist in the late 19th century, in an 1877 work entitled "Better Times", and a citation by an unknown author in 1884 in the pages of Pall Mall magazine.

Related Topics:
Thackeray - 1854 - 1867 - Proudhon - Das Kapital - 20th century - Max Weber - The Protestant Ethic and the Spirit of Capitalism - 1904 - Werner Sombart - 1906 - OED - Karl Daniel Adolf Douai - Socialist - Abolitionist - 19th century - 1877 - 1884 - Pall Mall

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Under the Marxist theory of ideology, a dominant economic class is believed to have its own ideology serving its class interests. The ideology of the "capitalist class" or bourgeois also came to be known as "capitalism", giving the word another meaning. This usage has been adopted outside of Marxist circles, and today many economic liberals self-describe as "capitalists", even if they are not personally involved in business investment.

Related Topics:
Marxist theory - Ideology - Bourgeois

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