capitalism

Definition

An economic system where the means of production are privately owned and operated for profit, creating a delightful paradox where the invisible hand of the market somehow manages to be both magical and occasionally prone to slapping people in the face. It's the reason your coffee costs $7 and someone had to invent the term 'disruption.' Love it or hate it, it's what's paying for your avocado toast.

Example Usage

Under capitalism, three competing startups will simultaneously reinvent the wheel, call it innovation, and ask for venture funding.

Source: Economic and political science terminology

Related Terms

Intermediate

quick ratio

Current assets minus inventory divided by current liabilities—also called the 'acid test' because it measures whether you can pay bills without selling inventory. It's liquidity measurement for pessimists who assume everything in the warehouse is unsellable.

💰 Finance / Accounting

Intermediate

clawback provision

A contractual clause allowing a company to demand return of previously paid compensation, typically when executives are caught cooking the books or performance metrics turn out to be fiction. It's the corporate equivalent of 'give me back my money.'

💰 Finance / Accounting

Intermediate

solvency

The ability to meet long-term obligations and survive beyond next quarter—unlike liquidity, which only cares about immediate bills. A company can be liquid but insolvent (cash now, doomed later) or illiquid but solvent (asset-rich, cash-poor).

💰 Finance / Accounting

Intermediate

solvency ratio

A measure of whether a company can meet its long-term obligations, typically comparing assets to liabilities or earnings to debt service. It answers the question: 'Will this company exist next year?'

💰 Finance / Accounting

Intermediate

commercial paper

Short-term unsecured promissory notes issued by corporations to fund immediate needs, typically maturing in under 270 days to avoid SEC registration. Think of it as corporate IOUs for companies with good enough credit that people actually accept them.

💰 Finance / Accounting

Beginner

Recession

Two consecutive quarters of economic decline, or as economists love to debate, maybe it's a vibe thing. During a recession, everyone becomes an armchair economist and suddenly has strong opinions about GDP, none of which are correct.

💰 Finance / Accounting

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Double-click

To examine something in greater detail, as if you're opening a folder on your desktop. Usually said right before someone...