Capitalism is an economic system; a capitalist is a person associated with that system. “Capitalist” can mean either someone who supports capitalism or someone who owns or controls wealth and uses it to generate more wealth. In short, the difference between capitalists and capitalism is person versus system.
What does capitalism mean?
Capitalism is an economic system in which private owners control and run businesses and industries for profit, rather than the government controlling them. That is the definition given by Oxford Learner’s Dictionaries.
In practice, capitalist economies commonly feature private ownership of productive assets—such as factories, mines, and railroads—paid wage labor, private returns on capital, and market prices that help allocate labor and investment among competing uses. The IMF describes these as typical features, not a checklist that every country follows identically. (IMF, “What Is Capitalism?”, published May 10, 2018.)
What does capitalist mean?
A capitalist is a person. Oxford gives the word two meanings:
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- A person who supports capitalism.
- A person who owns or controls substantial wealth and uses it to produce more wealth.
Context tells you which meaning is intended. In a discussion about political beliefs, it may mean a supporter of capitalism. In a discussion about ownership, class, or production, it may mean a person with wealth invested to generate further wealth. Not every person called a capitalist personally operates a business.
Is capitalism the same as laissez-faire?
No. Capitalism is a broad category, not one fixed set of government policies. A lightly regulated, laissez-faire market is one form; a mixed economy can also be capitalist while using regulation to address market failures or support social welfare. The IMF distinguishes these approaches, and Britannica Money notes that many economies combine principles associated with capitalism and socialism rather than fitting exclusively into either category.
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To compare capitalist economies, look at how much and what kind of regulation they use, how production is coordinated through markets or other institutions, and what role government plays. The label alone does not establish that countries have identical rules or arrangements.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does the definition settle whether capitalism is good or bad?
No. The basic definition describes an economic system; arguments about its effects are a separate question. Britannica summarizes recurring criticisms that include instability, inequality, and social harms such as pollution or poor treatment of workers. These are critiques of outcomes associated with capitalist systems, not a definition of every capitalist or proof that every economy has the same results.
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Capitalism is commonly discussed in terms of private property, the pursuit of profit, and market competition. A historical illustration of self-interest often used in this discussion comes from Adam Smith’s The Wealth of Nations (1776): “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” The IMF reproduces the sentence in its 2018 overview; it illustrates one idea about economic motivation, not a complete definition of capitalism.
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How should you use the terms?
- Use capitalism for the system or economic arrangement.
- Use capitalist for a person, then clarify whether you mean a supporter or a wealth owner if the distinction matters.
- When comparing systems, specify the relevant institutions and policies rather than assuming the word “capitalism” means laissez-faire.
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