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Capitalism is Incapable of Supporting Fundamental Innovation

December 18, 2010 19 comments

I am going to make a claim, and let readers attempt to disprove me.

Capitalism in the absence of state oversight, support and handouts is incapable of fundamental innovation- technological or otherwise.

Capitalism, like mercantilism, is a zero sum game whose very nature and beliefs are incapable and incompatible with fostering anything other than grab-and-run type social systems. Not only does unregulated capitalism hinder attempts at progress but it also creates a society where high levels of distrust make large-scale efforts to do anything next to impossible.

Capitalism, in the western sense, worked only because it was balanced out by governments, unions, religion and tempered by wars. Left to its own devices, capitalism will consume itself and leave a broken, poor and distrustful society- all without anything to show for progress or innovation.

Comments?