This article from the WSJ lays out why it is (page #3 is great)... Capitalism is so broken it can’t be fixed - MarketWatch Innovation has to wade through regulations and lawsuits. Investors want to take large portions of a company to lend then tens of thousands of dollars, instead of investing in a company and making a percentage of the initial investment back up to a certain limit. Innovators and entrepreneurs should be the ones driving the economy not the financial marketplace. The lawyers and patent lawsuits are also a problem. Big business is more able to move to a low tax state or country than a small business or individual. If I were going to start an on-line company next month, I would have to spend a lot of time figuring out where I want to move to avoid having to pay hundreds of thousands of dollars in taxes if my business is a success. Let alone if I sell a lot of products to the international market and have millions in foreign currency revenues that I would have to pay the foreign government taxes on, but I would have saved in bank accounts around the world... It would become a problem, not a bad problem, but still... Now, the computer/automation revolution has changed a lot of things in the past 30 years, but they are also changing the rules of the game and how things work. And I won't even get into the financial market traders/fund managers who are living in a different world. Even the US government is selling off assets and turning over any way of making money to the private sector. For the individual, we have the cheap or poor consumer who doesn't care about the quality of a product as long as it is free or much cheaper than the competition. And I am living proof that you can spend money correctly and then live well being cheap. But, if too many things are free, and people don't need to earn as much money, what happens then? Will people choose to work less, will that ever be socially acceptable? Will low-income cities be created that work (unlike 'the projects' and trailer parks), but more like hippie communes or does that take a certain mindset and is too public/sharing of resources? Will they work the same and use the extra money to improve their lifestyle? Or will they still have to work any job they can find and work over 40 hours a week just to get by because they price of everything has gone up so much? Even having to support a wife and kid on my salary would be a problem. The value of the dollar has been tanking because of overspending, tax avoidance by big corporations, and wasteful spending on consumables. The military and healthcare industries don't want to give up anything. The Baby Boomer generation didn't put enough into the SS and medicaid system to offset the life expectancy and expected level of care and retirement income. How could they since they would of needed to have had their investments grow 1000% since 1970 to offset just the inflation rate on certain items. What used to cost 5 cents is now 50 cents, what used to cost $40,000 is now $400,000. And then you get into the whole labor issue and how much should someone get paid. The older generation still remembers when $1 an hour was enough to get by on, now $10/hour wouldn't do much in the bigger cities. However now even with a good average salary it is hard to even be able to afford to buy a new car. New Cars Increasingly Out of Reach for Many Americans - Yahoo! Finance I went to the car show last weekend and they are trying to sell pickup trucks for $34,000. I remember when I first wanted a truck it would cost under $10,000. I might be able to save $30,000 in two years, but the extra $2,000/year in insurance payments and fuel payments (or electricity costs) is hard to justify when I don't know if I will be able to work in the same job for 30 years, and have to deal with the dollar falling in value another XX% by the time I retire. I travel enough to have been to some countries where things are 20% more expensive and I had a much harder time keeping my bank account in the black. And as we saw this past week with the whole Yahoo! work from home debate, it looks like there is a big disconnect between management and the workers in this country. The politicians want more scientists and engineers, but even if they do something great, they don't see any share of the profits. The investors get all of those. Science and engineering are fun, but not a good career choice at all if you want to make any real money or feel financially stable for life. I could probably go on, but what do you guys think? How do you fix the business environment and political environment that we are in? Is there too much corruption and gaming the system, or is it that only a few of the most outrageous companies/people get caught and make the news? Do we need a new model for Capitalism? Do we need a shift in the way the government does business where it can charge people and make money as a monopoly? How much of a role does the individual play in this by not caring where or how power is generated, gasoline is made, waste water is treated when it comes to decisions about what product to use or what the tax rate is somewhere? Is it a problem that can be fixed, or is the boom-bust cycle just something to be expected?