How does the concept of moderation applies to capitalism?

Answer 1

There isn't. The free market keeps it honest..In the late-nineteenth-early-twentieth century, there were many attempts to “corner the market” on various commodities (such as cotton and wheat, to mention two famous examples)—then close the field to competition and gather huge profits by selling at exorbitant prices. All such attempts failed. The men who tried it were compelled to give up—or go bankrupt. They were defeated, not by legislative action—but by the action of the free market.

Answer 2

Capitalism only works when there is no moderation. You can't have the government step in and dictate what something is worth. It causes the entire system to be off-balance.

Capitalism works best when there is no moderation, but when it's left to thrive.

For example - "price gouging" laws. If you are in a disaster area and there is a limited amount of clean drinking water, everyone is going to hoard as much as they can afford. The first guy who gets there buys 100 gallons because the store isn't allowed to raise its prices. The next guy buys 50, and there is none left for the third guy.

However, if the store is allowed to raise the price to $5/gallon, most people will only buy as much as they need because it's really expensive. Therefore, there's drinking water for everyone.

And, if someone outside the disaster area can make a profit, they will fill their truck with gallons of water and go sell them - again plenty of water for all. However, if that guy can't make a profit, why would he spend time away from his family, put hundreds of miles on his truck, and suffer in the disaster area?

Supply and demand always works when people don't mess with it.

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Answer 3

It fits perfectly as long as it is a matter of personal choice