Capitalism, profit and loss gives firms the incentives to discover new techniques. But standard capitalist logic is optimized for a setting of decreasing returns. If there were no increasing returns, none of us could live better than we could in isolated huts without even our families. Increasing returns are the source of all civilization. And so which a 300 years ago made poor ther wars veran.
Author and Microsoft executive Glen Weyl talks about radical reforms of capitalism with EconTalk host Russ Roberts. Weyl is worried about the concentration of corporate power, especially in the tech sector. But rather than use the traditional tools of antitrust, he has a more radical strategy for reorganizing corporate governance entirely.