Capitalism is an economic system based on private ownership of the means of production and their operation for profit.

Early forms of merchant capitalism existed in Europe during the late Middle Ages and the Renaissance.

The Age of Discovery and the establishment of global trade routes created new opportunities for capital accumulation.

The Protestant Reformation, particularly Calvinism's emphasis on the 'Protestant work ethic,' is argued by some scholars to have fostered a capitalist mindset.

The Industrial Revolution in the 18th and 19th centuries marked the rise of industrial capitalism, based on the factory system.

The Scottish philosopher Adam Smith, in his 1776 book 'The Wealth of Nations,' provided the classic intellectual justification for capitalism.

Smith argued for free markets, the division of labor, and the 'invisible hand' of supply and demand to regulate the economy (laissez-faire).

Capitalism led to unprecedented economic growth and technological innovation.

It also created new social problems, including a new industrial working class, poor working conditions, and greater economic inequality.

Capitalism has become the dominant economic system in the world, though its form varies significantly between countries.