Capitalism

From From the Trees to the Stars

Capitalism is the application of democratic principles to economic systems.

In capitalism it is assumed that everything has a fluctuating monetary value that can be determined as a function of how much of that thing there is available and how much demand there is for it.

Essentially, people "vote" on the value of things by either buying them at the current price, or not.

Unlike in democracy, where each person has one vote, in capitalism everyone has a different number of "votes" according to their wealth and therefore a different level of influence.

In theory, people get paid for their work according to their abilities and efforts. This implies that those who work harder become wealthier and are thus deserving of more influence.

But the reality is that wealth derives more from good luck than hard work.

I don't wish to discount the role of hard work in success, but being born in the right family, gender, race, country and/or decade; having the right opportunities is what separates the hard working millionaires from millions of hard workers.

In theory, wealthy entrepreneurs create and grow businesses that employ others and therefore generate benefit for the broader society.

The reality is that the current laws and regulations favour forms of wealth creation that don't benefit others.

The fastest way to make money at the moment is to trade in abstract financial products, while every industry that actually employs people has been on a twenty year drive to optimise their business by reducing or outsourcing their workforce.