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News Link • Economy - Economics USA

Capitalism and Corporatism: The Clash of Absolutes Section I

Capitalism thrives on certain essential components, each of which tends to regulate the other. At the core of capitalism is the relationship between supply and demand. Success is determined by mediating the relationship between the two: if you have too much supply, you will drive prices below the threshold at which you can sell your good or service and still maintain a working profit; whereas if you have too little supply, you will drive prices up to a point where your potential customers consider your goods to be beyond the range of what they can afford....

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