What is capitalism?
Q: What is capitalism?
A: Capitalism is an economic system where means of production are privately owned and operated for profit. Most property is owned by people or companies, not the government, and prices move up or down according to availability and demand.
Q: What does the word "capital" mean?
A: The word "capital" refers to something of value that can be used to make things, such as money or other goods that can be traded. It originally comes from the Latin word "caput", meaning "head," which was used to refer to how many head of cattle a rich person owned in days long ago when cattle were used as money.
Q: Who wrote The Wealth of Nations?
A: The philosopher Adam Smith wrote The Wealth of Nations, which developed the ideas of capitalism and free market economics.
Q: When was the term “capitalism” first used?
A: The term “capitalism” wasn't used until the 19th century.
Q: What is a joint-stock company?
A: A joint-stock company is a business where different stocks can be bought and owned by shareholders. Each shareholder owns company stock in proportion to the number of their shares.
Q: Is capitalism always close to free market economies?
A: Yes, capitalist economies are often close to free market economies, meaning that prices move up or down according to availability and demand without much government regulation or planning.
