Industrial capitalism is an economic system characterized by the private ownership of the means of production, where businesses operate for profit within a competitive market. This system emerged during the Industrial Revolution and led to significant changes in labor, production, and economic structures. It is marked by the use of heavy machinery and a pronounced division of labor, with the industrialists taking the place of merchants as key players.

• Private Ownership: The means of production (factories, farms, etc.) are owned by private individuals and companies, not the state.
• Profit Motive: Businesses are driven by the desire to earn profits, which encourages competition and efficiency.
• Market Competition: Businesses compete with each other to offer the best products and prices, influencing innovation and affordability.
• Wage Labor: Workers sell their labor for wages, and do not own the means of production or the profits generated.
• Capital Accumulation: Profits are reinvested to expand production and increase capital.

• Origins: Industrial capitalism can be traced to the 16th century, with continuous development dating from that time. Its roots lie in agrarian capitalism and mercantilism in Europe, particularly England.
• Transition from Mercantilism: It replaced mercantilism in Great Britain in the mid-18th century, as theorists like Adam Smith challenged mercantilist doctrines.
• The Industrial Revolution: This period saw the rise of the factory system, complex divisions of labor, and routinization of work tasks. The productivity gains led to unprecedented economic growth.
• 19th and 20th Centuries: Capitalism spread globally through trade and imperialism. The system evolved, becoming more regulated after World War II before a return to deregulation with neoliberalism in the 1980s.

• Economic Growth: It promotes economic growth through capital accumulation and efficient resource allocation.
• Social Changes: It led to urbanization, the rise of a middle class, and new patterns of consumption.
• Labor Issues: It created a large working class, often facing poor conditions, low wages, and exploitation. This spurred the rise of labor movements.
• Wealth Disparity: It generates significant wealth disparities and social inequalities.

• Marxist Critique: Karl Marx saw capitalism as a system of exploitation, leading to class conflict and inequality.
• Social Darwinism: The application of "survival of the fittest" to justify wealth concentration and harsh labor conditions was a point of contention.
• Croneyism: There are concerns about crony capitalism, where political connections and corruption lead to unfair advantages and monopolies.
• Environmental Concerns: Industrial production has led to pollution and depletion of natural resources.

• Laissez-faire: Early industrial capitalism was characterized by minimal government intervention.
• Regulation: Over time, governments began to regulate capitalism to address issues like monopolies, labor conditions, and social welfare.
• Mixed Economies: Most modern capitalist economies are "mixed," combining free markets with government intervention and regulation.

The relationship between capitalism and democracy is debated. Some argue capitalism is necessary for political freedom, while others point out that capitalism can exist under authoritarian regimes and can lead to inequalities that destabilize democracies.

• Industrial Capitalism: Focuses on production of goods and services, investment in machinery, and a division of labor.
• Financial Capitalism: Focuses on the accumulation of capital through financial instruments, markets, and institutions. Some theorists argue modern capitalism is shifting towards financial capitalism, where profits are derived from financial activities rather than industrial production.

Technological advancements are deeply intertwined with industrial capitalism, driving increased production, efficiency, and economic shifts. Automation is also raising questions about the future of work and the potential displacement of human labor.