What is capitalism based on?

Capitalism, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately held and production, prices, and incomes are determined by markets. Learn more about the history and development of capitalism in this article.

When did capitalism start?

Although the continuous development of capitalism as a system dates only from the 16th century, antecedents of capitalist institutions existed in the ancient world, and flourishing pockets of capitalism were present in Europe during the later Middle Ages.

Where did classical capitalism come from?

The ideology of classical capitalism was expressed in An Inquiry into the Nature and Causes of the Wealth of Nations (1776), by the Scottish economist and philosopher Adam Smith, which recommended leaving economic decisions to the free play of self-regulating market forces.