Capitalism's fundamental flaw?

2009-11-06T18:37:09

And our talented youth gets seduced by this profession of speculation known for its easy and abundantly flowing financial rewards, avoiding those that require much greater intellectual capacity. Most importantly, very early in their lives, our talented youth come to realize that fields that may earn them a Nobel Prize--cancer research or multi-core computing--may not make them rich. But moving money from here to there will. And thus, we lose Berkeley Ph.Ds in nuclear physics to hedge funds and MIT computer scientists capable of delivering computing to 6 billion people to derivative manipulation on Wall Street. Rand, somewhere down the road, you lost me. I don't see how free market capitalism fixes this systemic flaw. Sramana Mitra writes about a fundamental "flaw" in capitalism The standard response from "Austrian economics" enthusiasts is that what you see in the US is not really true capitalism but state-regulated capitalism which is just another form of socialism (most of them dream of living in Somalia which according to them is a shining example of free-market economics at work with absolutely no state interference). The truth is that there are too many wicked and greedy people on this planet that you will find a good number of them in any kind of socio-economic system, however perfect. These people will ultimately bring down the system - after having exploited it thoroughly to their personal benefit.

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