Exactly which form of Capitalism is Dead?

The reason I am not on verge of Hara Kiri?

There does not exist any agreed definition for Capitalism. While the current form of capitalism is failing, it is not my preferred version of Capitalism.

The version of Capitalism that is failing is what I refer to as ‘Hedonistic Capitalism’ — The ‘shareholders and management can treat employers, consumers, and suppliers anyhow they like’ variant of Capitalism’.

‘Hedonistic Capitalism’ is failing, already has failed America.

What then are alternatives to ‘Hedonistic Capitalism’? Well, first on the agenda is ‘Socialist Capitalism’, the sort of capitalism practiced in France, Spain etc. Clearly, this version of capitalism does not seem to have fared much better than hedonistic capitalism.

While ‘Socialist Capitalism’ can forment and accentuate inequities within society, the APLHD variant of capitalism is specifically formulated for mitigation of inequities within society.

Innovation Centered Capitalism (ICCs) encourages people to be innovative, and provides regulations, such as patent laws, ease of starting businesses etc., that encourage people to be innovative. Within ICCs, so long as there exists feasibility of generation of profits, there is enough incentive for pursuit of innovation. So long as innovations that eminently are practical in their uses have an easier path to success in relation to merely profitable innovations, a wealth rationale is a healthy rationale for facilitation of innovation centered capitalism.

Each of shareholders and management operating within ICCs build organizations within which salaries of CEOs and top management do not grow faster than those of other employees.

With the recognition that it is impossible for every single human being to have either of desire or capacity for innovation, ICCs provide safety nets for ensuring no one in society is left behind. If there are people who are not highly motivated, who want to live minimally in context of the minimum amount of work required for minimalist living, such options are available. In ICCs, no one ends up living on the streets because they want minimal work hours that do not require any formal education in exchange for minimalist living. Regulated properly, ICCs are the dominant form of capitalism.

Innovation Centered Capitalism is the Dominant form of Capitalism. Presence of an incentive for ‘innovation curiosity’ guarantees higher rates of innovation than within any other variant of capitalism.

Innovation Centered Capitalism is closest to the variant of capitalism — the firm as nexus of contracts that ensure equilibrium in interactions between all stakeholders, such as employees, suppliers, consumers, shareholders (Jensen and Meckling 1976, Stiglitz (1972), Jensen and Long (1972), Leland (1973), and Baron (1979)) — that is recommended by theoretical models of capital markets within the literature of Finance.

The problem within the United States of America? The profit motive for innovation is superseding the usefulness motive.

Redundant innovations merely repackage innovation that already exists into a form that can generate profits. Redundant innovations create jobs, but inherently lack capacity for creating new stores of knowledge, skills, physical capital, and knowledge capital.

Absent innovations that shift the stock of knowledge, skills, physical capital, and knowledge capital upwards, societies stagnate.

Educator and Researcher, Believer in Spirituality, Life is serious business, but we all are pilgrims so I write about important stuff with empathy and ethos

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