Capitalism is dead

[timelets]

Schumpeter: "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.

Comments

https://timelets.dreamwidth.org/tag/innovation

[peristaltor]

What "progressive bend" are you talking about? In my observation, most VC-funded giants are doing everything in their power to protect their profitability, even if these practices are just about literally destroying society.

[timelets]

This progressive bend is relative to other major American corporations.