Capitalism is an economic system characterized by private ownership of the means of production, where goods, prices, and distribution are primarily determined by free market competition. The drive to make a profit is an essential feature. Modern capitalism took shape between the 16th and 18th centuries, evolving from agrarianism in England and mercantilism in Europe. The Industrial Revolution in the 18th century then cemented it as the dominant mode of production, marked by factories and complex labor divisions. It has since spread globally.
Capitalism is built upon private property rights, self-interest, and competition. It emphasizes capital accumulation, commodity production, and wage labor. Throughout history, it has appeared in various forms, including merchant, agrarian, and industrial capitalism. While advocates credit capitalism with encouraging economic growth, critics point to potential issues such as wealth disparity, exploitation of labor, environmental degradation, and economic instability. Some view capitalism as inherently undemocratic. The theories of Karl Marx are a major source of critiques of capitalism.