Capitalism Economic system, money exchange, private ownership

Economic system whose characteristics are: a money exchange; private ownership of the means of industrial production (or CAPITAL); production for the purpose of obtaining a profit; competition among private manufacturers or "businessmen" in the sale of goods or services, at prices set by the producers to bring in a profit over the original investment; and private control over the return from the sale of goods or services. Capitalism came into being at the end of the Middle Ages, with the break-up of the system of Feudalism. Typical capitalists are bankers, industrial manufacturers, merchants, and "businessmen" of various sorts. The earliest period of capitalism, during the Renaissance and early part of the 17th century, is considered to have been marked by an accumulation of capital, and the next stage, during the 18th century, by the development of large industries held in individual hands. From the 19th century to the World Wars of the 20th century, capitalism came to be distinguished more and more by a development from individual to corporate ownership, reduction in competition through monopoly and centralized control, and separation of ownership and management.