Capitalism: Competition, Conflict, Crises (SAFE • SERIES)

Conflict is seen as a foundational element, not an anomaly, of the capitalist system.

The market is not regulated by an "invisible hand" ensuring efficiency, but by the most efficient producers ("regulating capitals") who establish the low-cost price-point, forcing others to adapt or die.

Competition shapes global patterns of trade, finance, and investment, reinforcing imbalances between developed and developing economies. Capitalism: Competition, Conflict, Crises

Competition acts as a form of "economic warfare" where producers constantly attempt to lower costs through wage reduction, technological innovation, and increased efficiency.

Shaikh argues that the neoclassical model of "perfect competition" is unrealistic and ideologically driven. Instead, he proposes a theory of : Conflict is seen as a foundational element, not

Firms are not price-takers; they are active rivals struggling for market share.

Prices and profit rates do not stay equalized; rather, they fluctuate continuously around a moving, "gravitating" center. 2. Conflict in Capitalist Dynamics Competition acts as a form of "economic warfare"

Real competition creates intense conflict between companies, industries, and nations, as producers fight for a share of the total global profit.