Capitalism rise

Definition

The rise of capitalism refers to the emergence and growth of economic systems characterized by private property ownership, competition, profit motive, and free market principles during late Middle Ages into Early Modern period Europe.

Analogy

Consider capitalism as playing Monopoly. Everyone starts with some money, buys properties (private ownership), and the goal is to make more money (profit motive) by charging others rent if they land on your property (competition).

Related terms

Mercantilism: An economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances.

Industrial Revolution: A period of major industrialization that took place during the late 1700s and early 1800s; it saw a shift from an agrarian economy to one dominated by industry and machine manufacturing.

Adam Smith: A Scottish economist who is best known as the author of "The Wealth of Nations," which laid out many principles of capitalism.