Demonstrating the inherent contradiction of capitalism in practice.
Capitalism is allegedly the only fair way to price things, via the “Price Mechanism”. However, capitalists have simultaneously been creaming their pants at the idea of charging specific people or people in specific situations more, because they can get more profit, in service of Profit Maximization.
I’m sure I’ll get a lecture on how they are not at all mutually exclusive but I don’t care, honestly. It’s either going to price gouge when the customer is perceived to be in more need (low battery pricing for taxi apps) or have a price based on the customer’s ability to pay… at which point why not socialism?
Essentially, the capitalist will support what is best for themselves and make up reasons why it theoretically might benefit consumers (but not really).
I think perfect competition is impossible. The incentive is not to compete fairly, it’s to maximize profits and the most effective ways to maximize profits are anticompetitive, exploitative, or both. Anyone arguing for a society built around such a system is either naive or trying to buy more time with false hopes.
Virtually every condition in the ideal scenario is a barrier for profit, and I don’t think any civilization has managed even a single one of those conditions. There will always be actors looking to take advantage of any loopholes or create unregulated markets.
It’s just not a system that is sustainable. The incentives are simply wrong and the society built around those incentives can’t maintain a system of perfect conditions even if one were to exist.
Demonstrating the inherent contradiction of capitalism in practice.
Capitalism is allegedly the only fair way to price things, via the “Price Mechanism”. However, capitalists have simultaneously been creaming their pants at the idea of charging specific people or people in specific situations more, because they can get more profit, in service of Profit Maximization.
I’m sure I’ll get a lecture on how they are not at all mutually exclusive but I don’t care, honestly. It’s either going to price gouge when the customer is perceived to be in more need (low battery pricing for taxi apps) or have a price based on the customer’s ability to pay… at which point why not socialism?
Essentially, the capitalist will support what is best for themselves and make up reasons why it theoretically might benefit consumers (but not really).
When people talk about the benefits of capitalism, what they’re generally really talking about are the benefits of perfect competition.
The capitalists themselves, of course, absolutely hate perfect competition with the burning wrath of a thousand suns.
I think perfect competition is impossible. The incentive is not to compete fairly, it’s to maximize profits and the most effective ways to maximize profits are anticompetitive, exploitative, or both. Anyone arguing for a society built around such a system is either naive or trying to buy more time with false hopes.
Virtually every condition in the ideal scenario is a barrier for profit, and I don’t think any civilization has managed even a single one of those conditions. There will always be actors looking to take advantage of any loopholes or create unregulated markets.
It’s just not a system that is sustainable. The incentives are simply wrong and the society built around those incentives can’t maintain a system of perfect conditions even if one were to exist.