1 Etymology The lexical roots of the word capital reveal roots in the trade and ownership of animals. The Latin root of the word capital is capitalis, from the proto-Indo-European kaput, which means "head", this being how wealth was measured. The more heads of cattle, the better. The terms chattel (meaning goods, animals, or slaves) and even cattle itself also derive from this same origin.
The lexical connections between animal trade and economics can also be seen in the names of many currencies and words about money: fee (faihu), rupee (rupya), buck (a deerskin), pecuniary (pecu), stock (livestock), and peso (pecu or pashu) all derive from animal-trade origins.
Often thought of as the "father of capitalist thinking," Adam Smith himself never used the term. He described his own preferred economic system as "the system of natural liberty." Though popular with Marxists, the word "capitalism" was in fact neither used by Karl Marx, who only spoke about capital, to refer to the relationship between owners (capitalists) and workers ( proletarians). Although it is not clear who used the word in its current, systemic context first, it was coined and introduced into the economic - and general - discourse by Werner Sombart with his 1906 classic, Modern Capitalism.
early 13c., from L. capitalis "of the head," hence "capital, chief, first," from caput (gen. capitis) "head" (see head). A capital crime (1520s) is one that affects the life or "head;" capital had a sense of "deadly, mortal" from late 14c. in English, a sense also found in Latin. The connection between "head" and "life, mortality" also existed in O.E.: e.g. heafodgilt "deadly sin, capital offense," heafdes þolian "to forfeit life." Capital punishment was in Blackstone (1765). Capital gain is recorded from 1921. Capital goods is recorded from 1899. Of ships, "first-rate, of the line," attested from 1650s. Related: Capitally.