How would you define "CAPITALISM", and how long (and in what forms) has it existed?

[webtraveler86]

It seems like capitalism as an economic/social system is so pervasive in contemporary western (and maybe even global) societies that we often take it for granted. I've been curious about what actually defines the capitalist system (or "free market" economics) and what its historical precedence is. Any thoughts?

[Tim M]

the rich using the poor to gain money because they are scum

[Sandeep]

capitalism is a system of production characterized by existence of two class of people- capitalists who own the means of the production and the labor class whose labor power is purchased by the capitalists.
capitalism is evolved out of feudalism via mercantilism.
the objective of the capitalistic mode of the production is surplus generation that is, profit maximisation

[socialistpb]

Capitalism is a system where the means of production are the property of a small number of people, the capitalists. The rest of us, the working class, are forced to sell our mental and physical energies to the employers in return for a wage. The employers make us work for longer than is needed to produce the value of our wages, and what we produce in this extra unpaid labour time is expropriated by the employers in the form of surplus value. So capitalism inevitably involves exploitation.

The existence of capitalism is not connected with the amount of government intervention in the economy, which can be great or small.

[phat tonez]

Wow. Don't listen to any of the socialists/communists above me. They obviously don't understand what capitalism is. Capitalism is the economic system of free trade and open markets. This means that government stays out of the way as much as possible and that intimidation does not occur. So, no government owned companies and no forced exchanges. The reason that the latter is so important is because forced exchanges only benefit one party. Free exchanges (aka trade) benefits both parties. And that's basically what capitalism is: leaving people to their own devices and allowing them to engage in free trade.

As for historical precedence, look to 19th century America and Victorian Britain (and maybe other parts of Europe during the time). Today though, the closest may be Hong Kong, but I've also heard good things about Poland.

[Bored Goblin]

- private property over most land, buildings, equipment
(with obvious exceptions for roads, parks, etc.)

- people can set up and own firms. Firms can own private property.

- people and firms own whatever they produce, including intellectual property such as technological innovations and works of art.

- people & firms are free to exchange their labor, goods and money in any way they want. There is no obligation to enter into any contract, but once signed, the contract must be fulfilled. Free market means no government intervention, e.g. no price controls, taxes, quotas, etc.

- there are anti-trust laws to prevent a single firm (or group of firms) from controlling the industry in any way other than offering its customers the best deal.

This set of laws was started in England and Netherlands in 17th centure, and was refined ever since. E.g. anti-trust laws were set up in early 20th century, and intellectual property laws are constantly being updated to deal with new areas of innovation, new media (radio/TV/CD/Internet), etc.

Capitalism guarantees that people without education, skill, talent or ability to work hard will have no job. Hence the angry response of the first guy.

It also means low quality of life for people with low skills. Hence the criticism by Karl Marx that answers #2 and #3 refer to. Marx suggested communism as the solution. US had found that workplace safety laws and building codes do the trick.

Note that this does not require democracy, just the laws protecting property and contracts. So you can have capitalism and dictarship, like in modern China, or post-war Japan and Korea.