What Went Wrong With Capitalism?

Capitalism's Evolution and Crisis - Capitalism has adapted through various models, including laissez-faire (1.0), Keynesianism (2.0), and Thatcher-Reagan era (3.0), each with its own strengths and weaknesses [3][6][7][8] - The model in force until 2008 crisis has perished, and a new model (Capitalism 4.0) is yet to take shape with clarity [5][6] - Markets signal to politicians when a model has ceased to work, as seen with the Great Crash, the inflation of the 1970s, and the 2008 crisis [10] Challenges to Contemporary Capitalism - Over-intervention by governments to minimize pain for markets and investors has ruined capitalism [14] - The expansion of the state, the culture of bailouts, and regulations undermine capitalism by entrenching incumbents and socializing losses [15][16][17] - Concentration of power in a few companies dominating the S&P 500 is a perversion of capitalism [17] - Productivity growth is falling off due to the loss of dynamism in capitalism, with constant state support hindering new entrants [18][19] Disillusionment and Alternatives - Approximately 70% of Americans believe they are unlikely to be better off than their parents, violating the American capitalist dream [21] - Many young people in America are disillusioned with the current form of capitalism and prefer socialism [22][23] Financialization and Liquidity Concerns - The degree of liquidity and financialization in the markets is seen as a problem by many capitalists [24] - Liquification and financialization of the economy have eliminated judgment and trust, leading to a version of capitalism that may not be better than socialism or communism [26]