1. an economic system in which private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the general market rather than through central planning

Examples

• The United States operates under a system of capitalism.
• Critics argue that capitalism creates inequality between rich and poor.
• Many countries have mixed economies that combine capitalism with government regulation.
• The rise of capitalism transformed European society in the 18th and 19th centuries.
• Under capitalism, businesses compete for customers and profits.
• Some economists believe capitalism promotes innovation and economic growth.