Here is the breakdown of the definition of capitalism.

Core Unbiased Response Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central to capitalism is the idea that economic decision-making—what to produce, how much to charge, and what to buy—is determined by the free market (supply and demand) rather than by central government planning.

The consensus among economists identifies these primary pillars:

Private Property: Individuals and corporations, not the government, own the land, factories, and intellectual property.

The Profit Motive: The driving force of the system is the pursuit of financial gain. This incentive is theorized to drive efficiency and innovation.

Market Mechanism (Price System): Prices are set by the interaction of buyers and sellers. If demand is high and supply is low, prices rise, signaling producers to make more.

Voluntary Exchange: Transactions are conducted freely between parties. Labor is viewed as a commodity; workers sell their time and skills for a wage.

Dissenting Views and Controversies Capitalism is the subject of perhaps the most heated debate in modern history.

The Marxist/Socialist Critique: Critics argue that capitalism is inherently exploitative. They claim that because owners (capitalists) control the means of production, they can pay workers less than the value of what those workers produce, keeping the surplus as profit. They argue this leads to an inevitable class struggle.

The "Market Failure" and Monopolies: Critics, including some Keynesian economists, argue that unregulated capitalism naturally leads to monopolies (where one company dominates), which destroys competition and harms consumers. They also point to "negative externalities," such as pollution, where a company profits but society pays the cost of the environmental damage.

The Instability Argument: Critics point out that capitalism is prone to "boom and bust" cycles (recessions and depressions), arguing that this creates instability for the average worker.

The Libertarian/Austrian Defense: Proponents argue that capitalism is the only moral system because it is based on voluntary interaction rather than state coercion. They dispute the idea that the state can manage resources better than the free market (the "Invisible Hand").

Empirical Facts vs. Opinions

Fact: Since the rise of industrial capitalism around 1800, global GDP per capita has increased exponentially, and the percentage of the global population living in extreme poverty has dropped significantly.

Fact: Capitalist economies consistently generate higher levels of wealth inequality compared to socialist or strong welfare-state economies. For example, in the US, a significant portion of wealth is concentrated in the top 1%.

Fact: No country operates a "pure" Laissez-faire capitalist system. Even the US employs government regulations, subsidies, and a central bank (The Fed) to manage the economy, making it technically a "Mixed Economy."

Opinion: Whether the wealth gap is a sign of a broken system or a natural reward for risk and innovation is a matter of opinion.

Opinion: Whether capitalism is compatible with long-term environmental sustainability (given the drive for infinite growth on a finite planet) is a subject of intense scientific and economic debate.

It is a system designed to maximize efficiency and wealth generation, though it often trades stability and equality to achieve them.