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This is Woozle's definition of capitalism, to be refined over time.
Capitalism is the idea that "investment" – putting private money ("capital") into an enterprise with the expectation of greater private return – should be the primary driver of an economy.
It does not require the existence of free markets (e.g. laissez-faire capitalism tends to operate in ways that destroy competition), though it is compatible with them.
Supporters of capitalism often claim that it maximizes social good, thus meeting the goals of socialism, but this is at best only true if capitalism is tightly regulated and constrained.