Capitalism is the prevailing economic system of the modern world. In a capitalist society, corporations and wealthy individuals own the means of production with little or no government oversight. Workers produce goods, but do not own the products of their labor; they earn a wage. The difference in value between the worker’s wage and the goods produced (which is often very large) is the source of profit for the owners of the corporation. In a socialist or communist society, the workers themselves own the means of production and profit directly from the goods they produce.

In today’s world, many corporations in North America and Europe outsource their labor to countries where wages are low as a way to maximize profits. Since capitalism is predicated on endless economic growth, capitalists have a strong incentive to exploit workers to maximize profits. This emphasis on endless growth also strongly incentivizes capitalists to engage in environmentally destructive actions as long as those actions are easier and more profitable than greener alternatives. The profit motive is the only meaningful mechanism for determining a corporation’s course of action.

Although capitalism is now ubiquitous, it is not the only economic system the world has seen. Prior to the rise of capitalism, many societies were founded on mercantilism.