capitalism.mm

**Capitalism** is an economic system based on private ownership and the investment of resources, such as money, for profit. Business grew and flourished. The reason for this is overseas colonization and trade. Numerous merchants obtained great wealth. Profits from these investments enabled them to invest even more money into other enterprises. The increase in Europe's wealth resulted in inflation, the steady increase in the cost of goods. Spain for example, endured a crushing bout of inflation during the 1600's. Boatloads of gold and silver from the Americas greatly increased the nation's money supply. Another business venture that developed during this time was known as the joint-stock company.