The one who coined the term capitalism for the production model under the Industrial Revolution was: a) Adam Smith; b) David Ricardo; c) Karl Marx; d) John Nash; e) none
The correct answer and explanation is:
Correct answer: c) Karl Marx
Explanation (300 words):
The term “capitalism” as a way to describe the economic system that emerged from the Industrial Revolution was coined and popularized by Karl Marx (1818–1883), the German philosopher, economist, and political theorist. While the system itself predates Marx, he was among the first to theorize it systematically and give it a specific critical label.
Adam Smith, often called the father of modern economics, laid the foundational ideas of classical economics in his seminal 1776 work, The Wealth of Nations. However, Smith never used the term “capitalism.” Instead, he focused on concepts like the invisible hand, division of labor, and free markets, praising the productivity and efficiency that arise from competition and self-interest in a market economy.
David Ricardo, another classical economist, contributed theories on comparative advantage and income distribution but also did not coin “capitalism.”
Karl Marx, in contrast, developed a comprehensive critique of the economic system he called “capitalism” in works like Das Kapital and The Communist Manifesto (with Friedrich Engels). He used the term to describe a system where the means of production are owned by capitalists, and the working class (proletariat) must sell their labor to survive. Marx viewed capitalism as inherently exploitative, predicting that it would eventually be replaced by socialism and then communism.
John Nash, a 20th-century mathematician known for his work in game theory, had no role in naming or defining capitalism.
Thus, while Smith and Ricardo helped build the intellectual foundations of capitalist economies, it was Karl Marx who gave “capitalism” its name and framed it as a historically specific mode of production, deeply connected to class struggle and industrial development.