As capitalism an economic system is understood, which is characterised by private property at means of production as well as production for a market determining the price. The term was introduced to the German-speaking countries by Werner Sombart into the scientific discussion.

Capitalistic further a society is called, if the division of labor regulated by the market is dominating and structuring principle of this society. Production ways, which on slavery, rural Subsistenzwirtschaft or feudalen industrial conscriptions is created, are not called therefore capitalistic. Capitalism began with the remote trade in the outgoing Middle Ages and replaced in Europe the Feudalismus and the town economy civil-relating to crafts. To the increasing development capitalism came since the industrialization in the 18.Jahrhundert.

Word origin

Ethymologisch originally comes the word of lat. capitalis (main), which comes again from caput (head). According to an interpretation originally "„the capital was measured "“after the size of the herds of cattle, thus after the number of heads in a cattle herd etc. in latin made however "“caput, capitalis"” likewise already a meaning change through, which is reconstructed in the German through "„main "“. "„Summa capitalis "“was the principal sum in accounts, from which then "„capital "“was to have developed. In Europe the words appeared "„capitaliste "“and "„capitalisme "“for the first time in 18. Century in France. In German the word was not introduced "„capitalism "“, like many to believe, by Marx or Engels, but it emerged only 1902 in Werner Sombarts "„modern capitalism "“and then 1904 in max of weber "“the Protestant ethics and "“the spirit"” of capitalism"”.

Approaches economiceconomics regulation

The capitalist gets by the net yield of his own capital funds the risk, which he took with the employment of his capital on itself, as well as the provisional renouncement of the invested capital paid off see also entrepreneur wages) - in quite different height (this depends both on his negotiation fate and on the not influenceable general price history on the job market and sales market). It strives thus for the maximization of its yield on equity.

Capitalism and free-market economy

Capitalism is not as key term marxism a neutral term, which is used therefore in the economic science and is not replaced by the not completely congruent and term of the free-market economy more extensively which can be understood. This generalization is meaningful and understandable however only as demarcation of the mostly socialist planned economy (central administration economy). Otherwise can be quite differentiated between free-market economy and capitalism - there were markets already before the invention of the coined money.

Substantial elements

Private property and decentralized decision

By private vested titles at means of production (capital) the powers of decision of the policy are extracted and in markets decentralized, had there from each owner (capitalist) to a large extent legally (not necessarily actually) his own planning.

Private means of production are only administered today in rare cases directly by the owner, but by the majority by a person or a finance company. Decides their managing director (manager) on behalf the remaining owners, what according to the principle aluminum agent theory to conflicts can lead. These interest conflicts between owners and managers are to be limited by clear legal and institutional basic conditions (Corporate Governance).

Co-ordination by the market

The planning of the particular is coordinated by the market mechanism. The market is defined as the place of the trade, at the offer and demand one on the other meets. The exchange of supply and demand causes ideal-typically a co-ordination over the price, the quantity and the kind of the goods

Articles in category "Capitalism"

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