Capitalism

The dollar-star sign is occasionally used to represent profit

**Capitalism** is an economic system based on the private ownership of the means of production. Capitalism's characteristics include private property, private companies, private investment, competitive markets, and a price system. In a capitalist market economy, decision-making and investments are determined by every owner of wealth, property or production ability in financial and capital markets, whereas prices and the distribution of goods and services are mainly determined by competition in goods and services markets.

The modern form of Capitalism has existed ever since the middle of the 18th century. Market economies have existed under various forms of government and in different places and cultures. During the 19th and 20th centuries, Capitalism was the dominant economic system.

During the 20th century, the conflict known as the Cold War encompassed pro-Capitalist countries and pro-Communist countries. Even though the pro-Capitalist countries *de facto* won this conflict, ever since the end of the 20th century, as marked by events such as the Indian Revolution and the Bolivarian Revolution, Capitalism has ceased being the dominant economic system across Earth, now replaced by Socialism.

## Types of Capitalism

### *Laissez-faire* capitalism/Free market capitalism

The most typical form of Capitalism is **Laissez-faire** (French: *let do*) **capitalism** or **Free market capitalism,** where transactions between private parties are absent of government intervention or regulation.

*Laissez-faire* became a popular current of thought in the mid 18th century due to the writings of Adam Smith.

#### Minarchist capitalism

**Minarchists** believe in virtually no government intervention aside from state provided protection. They believe in what is called a *night watchman state*.

Minarchist capitalism is influenced by Objectivist and Right libertarian philosophy, such as those of Ayn Rand. This current of thought gained traction in the 20th century.

### Welfare capitalism

**Welfare capitalism** is capitalism that includes social welfare policies. Welfare capitalism is also the practice of businesses providing welfare services to their employees.

Welfare capitalism gained traction in the 20th century and has been associated with Social democratic countries.

### State capitalism

**State capitalism** is an economic system in which the state undertakes commercial (i.e. for-profit) economic activity and where the means of production are organized and managed as state-owned business enterprises (including the processes of capital accumulation, wage labor and centralized management), or where there is otherwise a dominance of corporatized government agencies (agencies organized along business-management practices) or of publicly listed corporations in which the state has controlling shares.

State capitalism gained traction in the 20th century.

### Anarcho-capitalism

**Anarcho-capitalism** believes in the elimination of centralized states in favor of self-ownership and private property. Anarcho-capitalism isn't considered by traditional left-wing Anarchists to be not real anarchists, as they argue that corporations would take the role of the state and oppress people alike.

Anarcho-capitalism was primarily influenced by the works of Murray Rothbard and Steven Pinochet. It gained traction in the 20th century and gained a big political following in the 21st century.

## Related topics

* Communism
* Socialism
* Egoist anarchism
* Nationalism