ABSTRACT
Capitalism is often characterised as a ‘market economy’, with markets the defining feature, and anything that reduces their scope is apt to be seen as a threat or impediment to the system. This gives the impression that markets have a bond with capitalism and only came to the fore during the capitalist era. Commodification under capitalism brought untraded goods and services within the ambit of commerce. Markets have never been pivotal to the definition of capitalism, as their pre-capitalist origins provide little assistance in distinguishing capitalism from earlier economic systems. The markets most distinctive to capitalism are for labour, property and finance. Under ideal conditions, commodity and factor markets were supposed to exhibit price competition in an open arena with free entry and exit. Capitalism’s connection with markets has never been entirely harmonious. Inherent in capitalism is that markets move away from their most obvious applications and operating modes.
