>That capital gets destroyed, because the bad ideas can't pay it back But isn't that the crux of the problem. At some point those with capital accrue enough po

>That capital gets destroyed, because the bad ideas can't pay it back But isn't that the crux of the problem. At some point those with capital accrue enough power that they don't allow capital to be destroyed? Instead of taking a loss they lobby for laws and institutions that allow them to socialize their losses. For example laws that prevent student loans from being discharged in bankruptcy; Federal guarantees on loans; the asymmetric response of the Federal Reserve with interest rates (slow up, fast down); suspending of mark-to-market accounting rules; inflation targets that paper over bad investments; and rigged markets (i.e. prescription drugs). The result is a subsidy from labor to capital and from new capital to old capital, increasing wealth inequality and lower social mobility. For example assume that electric cars are the way of the future and that companies like Tesla will dominate. In that case anyone who invested in internal combustion engines invested wrong and should lose their money. That is capitalism. Instead what do we see? Thickets of laws to protect the business models of dealers of ICE cars and a market with thinner profit margins because companies were repeatedly bailed out rather then be forced to shrink or die.