Capitalism generally refers to an economic system in which the means of production are mostly privately^[1] owned and operated for profit, and in which investments, distribution, income, production and pricing of goods and services are determined through the operation of a free market.^{[dubious — see talk page]} It is usually considered to involve the right of individuals and groups of individuals acting as "legal persons" or corporations to trade capital goods, labor, land and money (see finance and credit).

Theories of capitalism first developed in the context of the Industrial Revolution, and, following Karl Marx, were generally used to criticize the concept. In the late 19th century some German and Austrian theorists began developing concepts of capitalism that differed from Marx's analyses in studies of capital and interest.^[2][3] In the early 20th century Max Weber gave the term a more positive connotation. During this same period Ludwig von Mises authored the most comprehensive philosophical treatise on capitalism to date: Human Action. During the Cold War, theories of capitalism continued to be developed and elaborated in order to explain, justify, or criticize the private ownership of capital; to explain the operation of capitalistic markets; and to guide the application or elimination of government regulation of property and markets. (See economics, political economy, laissez-faire.)^{[4][5][6][7][8]}

Capitalist economic practices became institutionalized in Europe between the 16th and 19th centuries, although some features of capitalist organization existed in the ancient world.^[9] Capitalism has emerged as the Western world's dominant economic system since the decline of feudalism, which eroded traditional political and religious restraints on capitalist exchange. Capitalism gradually spread from Europe, particularly from Britain, across political and cultural frontiers. In the 19th and 20th centuries, capitalism provided the main, but not exclusive, means of industrialization throughout much of the world.^[7][10]

The concept of capitalism has limited analytic value, given the great variety of historical cases over which it is applied, varying in time, geography, politics and culture. Some economists have specified a variety of different types of capitalism, depending on specifics of concentration of economic power and wealth, and methods of capital accumulation.^[7] During the last century capitalism has been contrasted with centrally planned economies. Most developed countries are usually regarded as capitalist, but some are also often called mixed economies^[11] due to containing both private-owned and state-owned enterprises, or that combines elements of capitalism and socialism, or a mix of market economy and command economy.

Source: Wikipedia