Capitalism t isn't scaled against regulation. Capitalism is just the economic structure in which most economic entities are privately owned.
Another very common misconception is that a "free market" is the same thing as a "perfect market".
A perfect market is the economic holy grail. It provides the most utility to society.
Unfortunately, a perfect market is only a thought exercise for now, since it's conditions aren't completely met anywhere in society.
Free markets very rarely become perfect markets, and in fact, there are many market failures which are very well documented. Regulation is put in place to help real world markets approach perfect markets.
Ultimately I believe the goal of economics, and what I think the principles behind capitalism are based on, is to align the individual's incentives with the well being of society.
Another very common misconception is that a "free market" is the same thing as a "perfect market".
A perfect market is the economic holy grail. It provides the most utility to society.
Unfortunately, a perfect market is only a thought exercise for now, since it's conditions aren't completely met anywhere in society.
Free markets very rarely become perfect markets, and in fact, there are many market failures which are very well documented. Regulation is put in place to help real world markets approach perfect markets.
Ultimately I believe the goal of economics, and what I think the principles behind capitalism are based on, is to align the individual's incentives with the well being of society.
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