• Mesopotamia and Ancient Egypt: Early forms of capitalism can be traced back to these civilizations where trade, money, and private property existed, though not in the modern sense.
• Ancient Greece and Rome: These societies had elements like banking, credit, and investment, but the economic system was more akin to mercantilism or what could be called proto-capitalism.

Feudalism and the Rise of Trade: While feudalism dominated, the late Middle Ages saw the growth of trade, particularly in Italian city-states like Venice and Florence. This period laid the groundwork for capitalist principles through the development of banking, commerce, and the concept of profit.

• The Age of Exploration: The discovery of new trade routes and the colonization of the Americas introduced new wealth and resources, fueling mercantilist policies where wealth accumulation through trade was paramount.
• The Birth of Modern Capitalism:
  • Mercantilism: From the 16th to the 18th century, mercantilism was the dominant economic philosophy, focusing on national wealth through trade surpluses. This era saw the establishment of joint-stock companies, which were crucial for colonial ventures and the early stock markets.
  • The Dutch Republic: Often cited as the first capitalist state, it was characterized by its stock exchange, high levels of trade, and the beginnings of modern banking.

• Adam Smith’s “The Wealth of Nations” (1776): This work is often considered the foundational text of classical economics, advocating for free markets and self-regulating economic systems, which became central to capitalist ideology.
• Industrial Revolution (Late 18th to 19th Century): This period marked the transition from agrarian societies to industrial and urban ones, driven by innovations in manufacturing, agriculture, transportation, and mining. It saw the rise of factories, significant capital accumulation, and the expansion of wage labor.

• Expansion and Imperialism: Capitalism’s growth was closely tied to imperialism, where European powers expanded their economic influence globally, often through colonization, leading to the global spread of capitalist practices.
• The Rise of Labor Movements: As capitalism expanded, so did the working class, leading to labor movements and demands for rights, better wages, and working conditions, influencing the development of socialist and communist ideologies.

• World Wars and Economic Shifts: The world wars and the Great Depression led to significant economic reforms, including the New Deal in the U.S., which introduced elements of welfare capitalism.
• Cold War and Globalization: Post-WWII, capitalism was challenged by communism, leading to a Cold War where economic systems became ideological battlegrounds. The fall of the Soviet Union marked a triumph for capitalism, leading to globalization where capital, goods, and services moved freely across borders.
• Neoliberalism: From the late 20th century, neoliberal policies emphasized deregulation, free trade, and privatization, reshaping global capitalism.

• Technological Capitalism: The digital age has introduced new forms of capital (data) and business models (platform capitalism), changing how capitalism operates with phenomena like cryptocurrencies and the gig economy.
• Challenges and Critiques: Modern capitalism faces critiques regarding inequality, environmental degradation, and the sustainability of infinite growth on a finite planet.