Capitalism is dead
Apr. 5th, 2019 11:23 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
timeletsSchumpeter: "capitalism is a form of private property economy in which innovations are carried out by means of borrowed money, which in general, though not by logical necessity, implies credit creation."
In the VC-based innovation model — the most successful innovation strategy to-date — startups don't borrow money and as a result, there's no credit creation. The entire process of value creation in hi-tech is fundamentally different from what is being covered in mainstream economics/finance.
I wonder whether the progressive bend of most successful technology companies originates in their own experience that has little to do with classical capitalism.
In the VC-based innovation model — the most successful innovation strategy to-date — startups don't borrow money and as a result, there's no credit creation. The entire process of value creation in hi-tech is fundamentally different from what is being covered in mainstream economics/finance.
I wonder whether the progressive bend of most successful technology companies originates in their own experience that has little to do with classical capitalism.
