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Compared to other economic systems, capitalism hasn't been around for very long. How fast do you want things to happen before evaluating the economic incentives
by camgunz 3y ago
Compared to other economic systems, capitalism hasn't been around for very long. How fast do you want things to happen before evaluating the economic incentives?
My point here is that incentives can work over time and interact with environmental factors. You're making essentially the same argument Larry Summers made against greedflation, "I don't think corporations suddenly became more greedy, so this can't be a phenomenon". Sure, greediness didn't change, but the economic and political environment did, giving the actors cover to collectively raise prices. It's the same as an algal bloom, the initial amount of algae was constant, but at some point the amount of fertilizer in the water increased and it multiplied at greater rates.
Or, empirically, you're making an argument against evaluating any economic system. The fall of the USSR couldn't have been due to communism, because communism was in effect the whole time. The fall of Empire X couldn't have been due to feudalism/mercantilism, because feudalism/mercantilism was there the whole time.