You can steal this for your economics exam

Capitalism is **an economic system based on the private ownership of the means of production and
their operation for profit**¹². In capitalism, the owners of capital (such as land, factories, machines,
money, etc.) can use their property to produce goods and services and sell them in the market to
earn profits. The workers, who do not own capital, have to sell their labor to the capitalists in
exchange for wages. The prices and the distribution of goods and services are mainly determined by
**competition in the market**¹².

Capitalism has different forms and variations, depending on the degree of government intervention,
regulation, and social welfare policies. Some examples of different types of capitalism are **laissez-
faire capitalism**, which is based on minimal state interference and free markets; **state
capitalism**, which is based on state ownership or control of some key industries; **welfare
capitalism**, which is based on a mix of private enterprise and public provision of social services; and
**neoliberalism**, which is based on deregulation, privatization, and globalization¹²³.

Capitalism has a long and complex history, with roots in ancient and medieval times. However, it
emerged as a dominant economic system in the Western world since the 16th century, especially in
England, where the growth of the textile industry led to the accumulation of capital and the
expansion of trade. Capitalism was influenced by various factors, such as the Protestant Reformation,
which encouraged hard work and frugality; the increase in precious metals from the Americas, which
caused inflation and stimulated commerce; and the rise of strong national states, which supported
mercantilism and colonialism²⁴.

Capitalism has been praised for its ability to promote economic growth, innovation, efficiency, and
individual freedom. However, it has also been criticized for its tendency to create inequality,
exploitation, environmental degradation, social alienation, and instability²⁴. Some alternatives or
critiques of capitalism include socialism, communism, anarchism, fascism, feminism, and
environmentalism²⁴.