Definitions Versus Slogans

How would one define capitalism? The Krupp family owned many of the companies under the wartime production of Nazi Germany; was that capitalism? The Chinese are emerging as aggressive, enriching producers and competitors throughout the world; is that capitalism? Is the defining of "free enterprise" in the cold terms of the hard capital that is part of free enterprise reasonable or inaccurate?

Economies are made up of exchanges, labor and goods. Generally there are two kinds of goods, consumption goods and capital goods. Consumption goods are those that are produced and consumed. Capital goods are those goods used to create the consumption goods--the means of production like farms, factories, laboratories, etc. Every society above the hunter-gatherer level has both consumption and capital goods. (Maybe the bow and the arrow are capital goods.)

There are three main sociopolitical/economic systems. One, "communism," wherein the State owns and controls the means of production and distribution, two, "fascism," where the private citizen may own the capital goods, but the State tells him how and when it can be used, and how the products can be distributed, and, three, "private enterprise," where the private individual or company both owns and controls the means of production, and the market self-regulates the distribution of products. Are those definitions enough?

If those definitions are acceptable, "socialism" looks most like communism but has a mixture of these with varying degrees of penetration. For example, the United States owned a number of energy sources (dams and power plants) that actually competed with private systems and negotiated with private outlets for distribution. The American governmental owned postal system competes with a number of private systems. The State of Pennsylvania owns all the liquor stores in the state and competition with them is illegal.

So where does capitalism come in? Is it free enterprise? Does it have to be totally free, like there is nothing like "sort of pregnant" or "mostly secure?" Why does the capital part have such prominence rather than labor; can a farmer be a capitalist? Can he not be?