Capitalism is characterized by what type of ownership?

Capitalism is fundamentally characterized by private ownership of the means of production, which includes factories, land, and resources. In a capitalist economy, individuals and businesses own and control property and enterprise, and they have the freedom to make decisions regarding what to produce, how to produce it, and for whom to produce. This private ownership is crucial because it drives competition and innovation, leading to greater efficiency and economic growth. Individuals and businesses operate in their self-interest, which, in theory, leads to the overall benefit of society through the creation of goods and services.

In contrast, public ownership, as seen in socialism or communism, involves the state owning the means of production. Cooperative ownership refers to a structure where profits are distributed among members or stakeholders and may not prioritize individual profit maximization as seen in capitalism. Mixed ownership combines elements of both private and public ownership, which is not the defining trait of capitalism itself. Therefore, private ownership best encapsulates the essence of capitalism.