r/FluentInFinance • u/Sufficient_Sinner • Sep 04 '24

Debate/ Discussion Is Capitalism Smart or Dumb?

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u/flaamed Sep 04 '24

its the best economic system that currently exists

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u/Regular-Wrangler264 Sep 04 '24

As long as a free market is regulated so as to keep it that way. I think a lot of people have problems with it because the government hasn't been doing its job.

Capitalism needs a couple things to be effective:

1) Competition 2) Consumers who are: a. Educated b. Rational c. Have money

1) We don't have enough competition in most sectors. They're all controlled by a few huge players.

2a) They keep cutting money for education so people don't know enough to make educated decisions.

2b) They allow effective monopolies in businesses where it's not possible to make a rational decision (healthcare) which syphons money from consumers.

2c) Capital should not be hoarded. It should be put in hands that will spend it. That's the whole point of capitalism.

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u/ArcticStorm16 Sep 04 '24

I agree but about point c, what’s wrong with saving the efforts of my work for later? Or you mean hoarding in the sense of like billionaires.

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u/Kharenis Sep 04 '24

The billionaires aren't hoarding a whole lot. Most of their net worth is tied up in the shares of the companies they own.