The solution to market failures is market solutions, carried out by innovators. A reader requests my views on "capitalism," which I set out as answers to his questions and comments.
Kudos for tackling some of these loaded terms. "Capitalism," not to mention "late-stage capitalism," makes me want to quote Inigo in The Princess Bride, "You keep using that word. I do not think it means what you think it means." Entrepreneurial markets or simply free enterprise are much more meaningful and accurate terms.
Why do people talk about the "perverse incentives" of markets but not the perverse incentives of government agencies? How are there "market failures" but no government failures? The one that makes me feel like fingernails on a chalkboard is "living wage," especially as used to justify the terribly destructive minimum wage laws.
I loved this response, and especially your ideas to solve some of the problems with capitalism (like long term incentives for companies! Yes!).
As for the give and take between free market capitalism and government regulated capitalism, it feels very case by case to me. There have been times government regulation/incentives worked very well. And times it didn’t. It seems we’re figuring out in real time where it helps and where it hinders!