Capitalist can describe both a person and an economic system.

A capitalist is someone who invests their money in a business, hoping it will grow and earn them more money back. When someone opens a bakery using their own savings, buys equipment, hires employees, and keeps the profits after paying expenses, they're acting as a capitalist. The key is that they're risking their own resources to build something that might succeed or fail.

The word also describes an economic system called capitalism, where individuals and companies (rather than the government) own most businesses and property. In a capitalist system, you're free to start a lemonade stand, grow it into a lemonade empire, or watch it fail if nobody wants to buy your lemonade. Competition can drive innovation: if your lemonade stand offers better service or tastier drinks than your neighbor's, you'll attract more customers.

Most modern economies blend capitalism with government rules and programs. The United States has a largely capitalist economy: people can start businesses, own property, and compete in open markets. But the government still sets important rules (like requiring safe ingredients) and runs programs like public schools and libraries.

The opposite of capitalism is often described as socialism or communism, where the government owns and controls most businesses and property.