Kapitalism

Kapitalism, sometimes written as "kapitalism" in some contexts, is an economic system in which the means of production—such as land, factories, and capital equipment—are largely privately owned and economic activity is organized through markets and firms. Core features include private property rights, capital accumulation, wage labor, competitive markets, and profit-seeking enterprises. Prices and output are predominantly determined by supply and demand in voluntary exchanges, with financial markets aiding investment and risk management.

In capitalist systems, individuals and firms engage in production and exchange through contracts and firms, with relatively limited direct state control over resource allocation. The state typically enforces property rights, contract law, and basic regulations, while providing public goods and, in many cases, social programs. Variants range from laissez-faire or liberal market economies to welfare capitalism and mixed economies that incorporate significant government intervention, regulation, and redistribution.

Historically, capitalism emerged from early modern commercial and industrial developments, with critiques and theories developed by classical economists such as Adam Smith, David Ricardo, and later Karl Marx. The Industrial Revolution accelerated capital formation, corporate organization, and global trade. In the 20th and 21st centuries, capitalism diversified into financialized, globalized, and digital forms, often integrated with state policies and international institutions.

Critiques of capitalism focus on issues such as income and wealth inequality, market failures, cycles of booms and busts, and environmental impact. Proponents emphasize efficiency, innovation, and growth, while supporters of reform advocate for stronger regulatory frameworks, social safety nets, and policies aimed at balancing opportunity with broader social welfare.