Capitalism works because 2 people who would actually hate each other, have different opinions if they ever met can trade their time using the market without knowing who is on the other side. Purely based on merit.

Actually, that is market economy, not capitalism.

Capitalism works against market economy through the usual capital concentration process, and that eliminates competition. That's why we have antitrust laws trying to combat that effect.

Also, the capital concentration process doesn't even take criminal activities into account such as those that e.g. Intel and Microsoft used to gain their position - merit alone my ass.

Capitalism, as the name suggests, does not primarily revolve around the real economy. The fincance casino dwarfs the real economy in terms of capitalisation. The idea is to make money from money, and real economy is more a nuisance. Like, you don't make big money from stock dividends - you make money from correctly betting on rising or falling stock prices.

This kind of transition happens as soon as money stops being means of exchange and turns into a commodity in itself.

@Fast-Nop bravo sir.

upvoted specifically for @Fast-Nop 's reply

@Fast-Nop *bows*

@Floydimus ☝️nice ass 😏

Just get back into your murican dream hole 😑

@electrineer 😉

@Fast-Nop Capitalism concentration, by alone does not have much meaning in terms of morality. Its like saying you went into the only shop in town and brought everything from the shop by yourself, and didn't gave anything away to anyone. Now others can't find anything to buy. The only way to combat that is by empowering more entrepreneurs not concentrate everything with the state.

Money is still means of exchange. People use money to buy all kinds of stuff, you are not interested in doesn't mean its less of a means of exchange. Only thing I blame is federal reserve manipulating its value.

Give me a good direct example of either of those companies you mentioned.

@jassole Capital concentration kicks in when no organic growth is possible anymore, and the large companies buy smaller ones, or push smaller ones out of business due to economy of scale factors. It has nothing to do with "morals", it's economy 101.

Do you remember the times when we had a couple more graphics manufacturers than AMD and Nvidia? Matrox, SGI, still remember?

Do you remember the late 80s where we didn't have Microsoft with the Windows desktop monopoly?

Do you have any idea how much capital you need to already have if you want to build say a fab with 5nm process? "Entrepreneurs", sure mate.

Money is not primarily means of exchange anymore. Look up e.g. fractional reserve banking to see how to create money via credit.

@ostream Not interested in what you have to say. Keep barking.

@Fast-Nop
"Do you have any idea how much capital you need to already have if you want to build say a fab with 5nm process?"

No idea, that's what entrepreneurs and venture capitalists are for. They take risks with their money. Or you think your government knows it better?

"Money is not primarily means of exchange anymore. Look up e.g. fractional reserve banking to see how to create money via credit.". This is debatable up to economists of how it impacts the economy. I don't see an issue with it as long as both depositors and lenders agree.

What I disagree is the cause of statetism of central monetary policy. The ability of artificially inject money via means of QE, and to bailouts some institutions because too big to fail. But this is not result of capitalism but rather central planning. Under capitalism these institutions would simply be bankrupted and liquidated.

@jassole Entrepreneurs and venture capitalists are not there for burning money. Forget "entrepreneurs" - if you try to understand our economy from a mom and pop shop perspective, of course you don't get even the fundamental aspects.

Look, e.g. Global Foundries is already in the business and still had to cancel the 7nm process because they are too small. Fewer and fewer companies can do this because it costs more and more. And that's an overall tendency, not just in that domain.

Also, capitalism IS quantitative easing. It's the stage when capital has basically bought not only the legislation, but dictates what the government can or cannot do.

"Simply bankrupted" my ass. You don't really get the consequences, do you? It's not just some stupid banks that would go bankrupt. One of the first consequences would be bank accounts being voided (yours included), home owners evicted en masse due to credit cancellation, then all the pension funds going down the drain, and so on.

@Fast-Nop
I strongly disagree with your assessment that this is due to capitalism.

But to your second comment, fine let them go down the drain (yes including my bank or my business) if they become a moral hazard. No handouts. Some of the reckless behaviours is due to assurance that the government are there to bail them out. Only way to enforce prudent business is to let them fail. Do it early, rather than this becoming the bigger bubble it is.

@Fast-Nop
"Global Foundries is already in the business and still had to cancel the 7nm process"

So what? This has nothing to do in relation to do with topic here. But all cutting edge research were done by capitalists. Intel vs AMD, nvidia vs radeon. Imagine if you never had competition, all these companies were just replaced by one entity called "government" I bet we'd still be using typewriters.

Besides, there is a lot more room to go horizontal i.e parallel.

@jassole That's the invitable dynamics of capitalism, and you still don't understand the difference between capitalism and market economy at a very fundamental level.

In case of Global Foundries, it's not research. It's economy of scale (I hope you know at least what that is) that doesn't allow them these investments because only the already big ones can do that while hoping to get them back - becoming even bigger.

Also, the people wouldn't be happy to be thrown out of their houses with no money anymore, and no pension funds anymore. That's why governments don't do that.

@jassole There is no room to go horizontal. That's the thing. Because giant corporations are serving every demand more efficiently than dozens of small ones could, no one can compete with these giants. The result is precisely that every market is concentrated around two or three massive companies which are doing exactly the same thing the government would except they have no motivation other than to make money and any regulation would have to be enforced by the government - formed by political parties so large and expensive that they depend on the support of capitalists.

@lbfalvy you don't understand that can't happens it's all because of the gobernemnt