I mean, capitalism does have to do with resource allocation, or rather allocative power. It’s defining feature is that allocative power is used in service to grow the allocative power of those whose allocative power was used to allocate resources in the enterprise under consideration. This doesn’t require a free market whatsoever, and that’s why things like state capitalism exist. The other corollary to this is that it inevitably tends towards constricted markets as allocative power naturally consolidates among fewer and fewer holders as time goes on.
Capitalism and free markets are not the same thing, nor is either particularly necessary to the other.
Free markets are absolutely necessary for capitalism.
Yes. Buuut what type of capitalism are we talkin’ bout?
Or exclusive.
The comment I was replying to seemed to assume capitalism had something to do with resource allocation.
I mean, capitalism does have to do with resource allocation, or rather allocative power. It’s defining feature is that allocative power is used in service to grow the allocative power of those whose allocative power was used to allocate resources in the enterprise under consideration. This doesn’t require a free market whatsoever, and that’s why things like state capitalism exist. The other corollary to this is that it inevitably tends towards constricted markets as allocative power naturally consolidates among fewer and fewer holders as time goes on.