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Capitalism is also good at building the right capital. Capital in this case refers to intellectual and physical goods that produce other goods, such as machine
by narrator 9y ago
Capitalism is also good at building the right capital. Capital in this case refers to intellectual and physical goods that produce other goods, such as machine tools, construction equipment, metallurgical processes or freight railroads for example. Building a lot of the wrong capital and using it inefficiently is a problem that has always plagued centrally planned economies.
- quadrangle 9y agoCapitalism isn't defined as "non-centrally-planned economy", it's specifically privately-owned capital. If that private ownership is concentrated enough, then lots of things are pretty centrally planned. And non-capitalist economies include ones that aren't centrally-planned.