What are the Flaws of Capitalism?

VaughanJB

VaughanJB

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We have a thread ongoing about flight travel and how much it has degraded. My brain wakes up to such discussions with the simple conclusion that it's decline in terms of comfort were inevitable given the driver of endless growth in financial terms. Leaders of a business have a legal responsibility to have the best interests of a business at heart, and "best interests" are usually interpreted in terms of growth.

The balance is generally considered to be the point where people would stop flying because the level of service is too low. However, that doesn't really work and drives us to the bottom, rather than the top.

Same with wage growth. It is always in the interest of a business to keep wages low. There's no incentive to make growth high.

So how can we ensure that society as a whole benefits from its labor, and that wealth is fairly distributed, in terms of purely capitalist ideals? And given capitalism appears to be the best system man has yet come up with, just how much regulation is needed to ensure we all benefit from such a system?
 

Capitalism doesn’t inherently distribute gains fairly—it requires *smart* regulation and countervailing institutions (unions, antitrust, social safety nets) to channel its energy toward broad prosperity. The "right" level of regulation is enough to:
- Sustain purchasing power (so workers can afford goods/services they produce).
- Maintain public trust (avoiding backlash against the system itself).
- Ensure long-term stability (e.g., preventing environmental collapse).

The alternative is a descent into oligarchy or populist revolts—outcomes that ultimately harm even capitalists. The system’s survival depends on its ability to self-correct through policy.

Deepseek.ai
 
With capitalism in our modern societies, as long as wealth seekers have more power, they will generally to a negative extent selfishly prioritize personal higher short term profits over fairness, reasonable equality to the rest of society, and environmental health and sustainability. And unfortunately power is entrenched with those wealthy and powerful.
 
VaughanJB said:
We have a thread ongoing about flight travel and how much it has degraded. My brain wakes up to such discussions with the simple conclusion that it's decline in terms of comfort were inevitable given the driver of endless growth in financial terms. Leaders of a business have a legal responsibility to have the best interests of a business at heart, and "best interests" are usually interpreted in terms of growth.

The balance is generally considered to be the point where people would stop flying because the level of service is too low. However, that doesn't really work and drives us to the bottom, rather than the top.

Same with wage growth. It is always in the interest of a business to keep wages low. There's no incentive to make growth high.

So how can we ensure that society as a whole benefits from its labor, and that wealth is fairly distributed, in terms of purely capitalist ideals? And given capitalism appears to be the best system man has yet come up with, just how much regulation is needed to ensure we all benefit from such a system?
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I challenge the idea that capitalism is the best system ever devised by humanity because it does seem to have a Darwinian aspect in the way it operates. It is competitive, almost too competitive, and while some do extremely well, a large percentage of businesses and people are left to struggle. Many do not even survive.

Capitalism needs a modicum of constraint. I favour a mixed economy where commerce is kept in check by necessary laws and regulations plus oversight by elected governments. I also favour governments providing certain essential services either in competition with private enterprise or as the sole provider of such services. We don't really want the armed services to be run for profit by private enterprise, or do we?

How much regulation is needed? To my way of thinking we need regulations to move with changing times, taking into account current and developing problems to do with health, the environment, workplace safety and declining standards of living for the already struggling workers with families to support.

Regulation alone will not achieve much. Governments can only do that which they can afford. They need revenue, which brings to mind the issue of taxation. Capitalism is not taxation friendly. Corporations have many ways to minimise their taxes. They have nearly as many ways to extract money from governments in the form of subsidies and other incentives. All well and good, but there comes a time when that system becomes so unbalanced that society as a whole begins to fall apart.

For capitalism to be the best system ever devised the corporations must start being good citizens. They need to develop social consciences and reflect on any harm they may be inflicting on people and the planet. For this outcome, regulations are very necessary. How much regulation I am unqualified to determine.
 
Capitalism left the building possibly about the Clinton's time frame but most likely decades earlier.

Guys convincing others to loan them money has always been a scam..

Are the jobs they create really all that great for the average person?

One day maybe asked to pay to rebuild N.Y.C. and then Baltimore and more.
 
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Harry Le Hermit said:
I am not sure that we have capitalism in any traditional sense. More akin to corporatism or corporate capitalism, imo.
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Yes, and that's the flaw of capitalism. It happens when labor laws and the regulation of products, manufacturing, and services are placed in the hands of politicians and gov't agencies that are not impartial, have their own agenda, or see an opportunity to profit from their involvement or interference.

In short, it's when consumerism alone is not allowed to drive (or destroy) industries.
 
Allowing super pac's is a lot that is wrong.
Honesty will win out when that ^ group is axed.

Hahahahahaha!
 
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Warrigal said:
I challenge the idea that capitalism is the best system ever devised by humanity because it does seem to have a Darwinian aspect in the way it operates. It is competitive, almost too competitive, and while some do extremely well, a large percentage of businesses and people are left to struggle. Many do not even survive.

Capitalism needs a modicum of constraint. I favour a mixed economy where commerce is kept in check by necessary laws and regulations plus oversight by elected governments. I also favour governments providing certain essential services either in competition with private enterprise or as the sole provider of such services. We don't really want the armed services to be run for profit by private enterprise, or do we?

How much regulation is needed? To my way of thinking we need regulations to move with changing times, taking into account current and developing problems to do with health, the environment, workplace safety and declining standards of living for the already struggling workers with families to support.

Regulation alone will not achieve much. Governments can only do that which they can afford. They need revenue, which brings to mind the issue of taxation. Capitalism is not taxation friendly. Corporations have many ways to minimise their taxes. They have nearly as many ways to extract money from governments in the form of subsidies and other incentives. All well and good, but there comes a time when that system becomes so unbalanced that society as a whole begins to fall apart.

For capitalism to be the best system ever devised the corporations must start being good citizens. They need to develop social consciences and reflect on any harm they may be inflicting on people and the planet. For this outcome, regulations are very necessary. How much regulation I am unqualified to determine.
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Well said, Warrigal! So well said I wish I'd written it myself.
 
Capitalization means coming up with the big Borrowed Bucks to do the big-iear,
thus putting small businesses out of business, Or purchased thus Getting control
of stuff, like the Market.

Look to J.D. I see Mfg. plants in Iowa moving to Mexico. 1000's of skilled workers put on skids.
Explaining the Growth of the Corn Crop in Latin America is costing American jobs huge.

I see Mid America as A 10,000' deep drillings super-heated Water / Energy producer on its Farms coming.
Lots of Mississippi, Illinois river water available. The need for the Deep Channel Barge Transports is quickly
diminishing as crops layoffs certain.

Beliefs in things a changing very rapidly is certain.

Nirvana got it right, SOMETINGS IS IN THE WAY
 
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Warrigal said:
I challenge the idea that capitalism is the best system ever devised by humanity because it does seem to have a Darwinian aspect in the way it operates. It is competitive, almost too competitive, and while some do extremely well, a large percentage of businesses and people are left to struggle. Many do not even survive.

Capitalism needs a modicum of constraint. I favour a mixed economy where commerce is kept in check by necessary laws and regulations plus oversight by elected governments. I also favour governments providing certain essential services either in competition with private enterprise or as the sole provider of such services. We don't really want the armed services to be run for profit by private enterprise, or do we?

How much regulation is needed? To my way of thinking we need regulations to move with changing times, taking into account current and developing problems to do with health, the environment, workplace safety and declining standards of living for the already struggling workers with families to support.

Regulation alone will not achieve much. Governments can only do that which they can afford. They need revenue, which brings to mind the issue of taxation. Capitalism is not taxation friendly. Corporations have many ways to minimise their taxes. They have nearly as many ways to extract money from governments in the form of subsidies and other incentives. All well and good, but there comes a time when that system becomes so unbalanced that society as a whole begins to fall apart.

For capitalism to be the best system ever devised the corporations must start being good citizens. They need to develop social consciences and reflect on any harm they may be inflicting on people and the planet. For this outcome, regulations are very necessary. How much regulation I am unqualified to determine.
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Love this post. Thank you for taking the time to write it.
 

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