Why do you think Capitalism has meritocracy as a core component?
Capitalism is a system where capital needs to be converted into more capital via economic action (reinvestment) rather than just sat upon.
Capital will always find ways to grow, if there are laws - they will be lobbied against. Or those with main market share will work together to stabilise the market and squash competition.
The better product; the greater amount of production; the higher efficiency
Every economic system claims to be able to deliver those goals.
But what you’re describing is more a general free-market economy than capitalism proper. The former determines how companies interact with consumers and each other; the later determines how power and profits are distributed within a company.
I haven’t yet expressed an opinion on capitalism, except to say that the features you’ve mentioned have little to do with it.
But to answer your original question: capitalism stricto sensu is when the profits and decision-making power in a firm are vested in those who put up the original financial capital. It incentivizes financial risk-taking, which depending on economic conditions can be useful or destructive. But the only merits it rewards are the possession of pre-existing wealth, the willingness to take risks with it, and luck. Nepotism and cronyism serve its ends by providing a source of wealth for new capitalists, and an outlet for successful capitalists to convert their gains into social rewards.
Why do you think Capitalism has meritocracy as a core component?
Capitalism is a system where capital needs to be converted into more capital via economic action (reinvestment) rather than just sat upon.
Capital will always find ways to grow, if there are laws - they will be lobbied against. Or those with main market share will work together to stabilise the market and squash competition.
Meritocracy is built in. The better product; the greater amount of production; the higher efficiency; is supposed to be what drives capitalism.
Built in to what? Make it cheaper, faster. The better product becomes a luxury.
Every economic system claims to be able to deliver those goals.
But what you’re describing is more a general free-market economy than capitalism proper. The former determines how companies interact with consumers and each other; the later determines how power and profits are distributed within a company.
It’s OK you don’t like capitalism but the industrial revolution did happen…
I haven’t yet expressed an opinion on capitalism, except to say that the features you’ve mentioned have little to do with it.
But to answer your original question: capitalism stricto sensu is when the profits and decision-making power in a firm are vested in those who put up the original financial capital. It incentivizes financial risk-taking, which depending on economic conditions can be useful or destructive. But the only merits it rewards are the possession of pre-existing wealth, the willingness to take risks with it, and luck. Nepotism and cronyism serve its ends by providing a source of wealth for new capitalists, and an outlet for successful capitalists to convert their gains into social rewards.
And I disagree