p. 21 Roger Sherman, Market Regulation:
The Industrial Revolution in England marked the emergence of capitalism, which organizes economic activity around markets and places central decision power in the hands of those representing capital. The corporation shows the capitalist form, with shareholders as residual claimants running the show. In the modern age, the central power is tempered by governmental political power through democratic capitalism. Here, democratic political power--operating from a "one person, one vote" principle--restrains the economic power of businesses. Through legislative and executive political institutions, governmental regulatory functions are defined and put into effect to produce a regulated species of capitalism.
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