“The 17th-century British East India Company was capitalist.”
Usage Entry 1338 / 1350 60-second read
Capitalism vs. Mercantilism
Private-ownership free-market system versus the earlier state-managed trade system aimed at accumulating gold.
The comparisoni
“The 17th-century British East India Company was mercantilist — state-chartered monopoly aimed at accumulating gold. Modern capitalism emerged later.”
The ruleii
¶
CAPITALISM = markets. MERCANTILISM = state trade.
CAPITALISM is the modern system — private ownership of production, free markets, price signals. MERCANTILISM is the earlier system (16th–18th century) — state-managed trade, chartered monopolies, bullion accumulation. Capitalism replaced mercantilism in the West; both involved wealth but through different mechanisms.
Memory aidiii
Remember it like this
Capitalism = free. Mercantilism = state-guided.