Pub. date: 2008 | Online Pub. Date: April 25, 2008 | DOI: 10.4135/9781412963893 | Print ISBN: 9781412958783 | Online ISBN: 9781412963893 | Publisher:SAGE Publications, Inc.About this encyclopedia
CAPITALISM IS AN economic system of market-driven services and production carried out by private individuals and business firms. Karl Marx coined the term capitalism as an opposite to communism/Marxism. Other terms that refer to this economic system include/ree enterprise and market economy . The term mixed economy refers to the combination of a market economy and taxation for governmental spending. Adam Smith originated the philosophy behind capitalism in his treatise An Inquiry into the Nature and Causes of the Wealth of Nations (1776). He argued that societal well-being could be the secondary result of the combination of self-interest, private ownership, and consumer-driven competition. Capitalism is a socioeconomic system where the infrastructure for production is privately owned; the market coordinates buyers and sellers; everyone involved in the system has the freedom to look out for their own self-interest with maximum return from the invention of resources, labor, and time; consumers are ...