...an economic or socio-economic system in which the means of production are overwhelmingly privately owned and operated for profit, decisions regarding investment of capital are made privately, and where production, distribution, and the prices of goods, services, and labor are affected by the forces of supply and demand. (Capitalism: Wikipedia)

Both the above definitions posit a number of central factors that are prominent in the history of capitalism. The first and most obvious aspect of the capitalistic ethos is the concept of personal profit. This aspect is aligned with the central concept of private ownership and the determinations of the labor market.

The roots of the theory of capital as we knew it today evolved during the 18th and 19th centuries and were formed primarily in the context of the industrial revolution and European imperialism. (Capitalism: Wikipedia) T

Most commentators place the actual beginnings of capitalism in terms of the principles of private profit and earnings, in the middle ages. Theoretically this development was opposed to the strong attitude of the church against usury and the profit motive. However it was in fact during this period capitalism was to grow rapidly. In the 13th century there was an increase in European trade and prosperity. This was a time when "....cities in Italy and the Netherlands witness a creation of wealth which is capitalist in kind - because any merchant is in essence a capitalist, risking his pot of money each time he buys in one place to sell in another. " (HISTORY OF CAPITALISM) The expansion of banking in Florence in the 14th century was also to spread the principles capitalism across Europe.

After the 17th century another important part of modern capitalism was introduced. This was the concept of speculation, which involved the idea of taking a risk in order to reap higher profits. The 18th century and the industrial revelation consolidated the aspects that we recognize in modern capitalism.

The capitalistic form of wage labor, where humans work for wages rather than for the product.

Mercantilism was to develop into capitalism in time. There are obvious similarities between the two economic and social models. Mercantilism provided the basic foundations of principle and impetus for capitalism in that it was "... the large-scale realization of a profit by acquiring goods for lower prices than one sells them." (The European Enlightenment Glossary: capitalism)

The accumulation of the means of production (materials, land, tools) as property into a few hands

(The European Enlightenment Glossary: capitalism)

The spread of mercantilism was to follow the growth and development of the Roman Empire. While European cultures were to show a tendency towards localization and a reduction of mercantilism due to the decline of the Roman Empire, the Arab cultures on the other hand "....had a long history of mercantilism, living as they did on the trade routes between three great empires: Egypt, Persia, and later Byzantium." (The European Enlightenment Glossary: capitalism) This was to impact on Medieval Europe which was later to absorb the praxis and principles of merca

Some common words found in the essay are:
HISTORY CAPITALISM, Enlightenment Glossary, Capitalism Wikipedia, CAPITALISM Smith, Twentieth Century, Encyclopedic Dictionary, CAPITALISM Furthermore, Medieval Europe, , Italy Netherlands, history capitalism, european enlightenment glossary, modern capitalism, enlightenment glossary, european enlightenment, enlightenment glossary capitalism, glossary capitalism, private enterprise, means production, capitalism mercantilism, capitalism fundamental, joint-stock enterprise,
Approximate Word count = 1537
Approximate Pages = 6 (250 words per page double spaced)