Originally Posted by ziggy29
Capitalism has some undesirable side effects, I think. When taken to completely unregulated extremes ...
So the trick is to encourage the risk taking and entrepreneurial spirit of capitalism without allowing the type of "excesses" that could destabilize society and dismantle the vital middle class. In other words, increase societal wealth without seeing fewer and fewer people benefiting from it.
I agree with the observations, however I don't think the solution is "tricky" at all.
From what I've observed, the only time "excesses" come into play is where there is not a free and transparent market. I've used this line before, but essentially "greed has little power in a free market". A "greedy" entrepreneur cannot overcharge if there are competitors.
For the most part, I think free markets can work pretty well on their own. In some cases, the consumer is
at a disadvantage with respect to transparency. I can't really tell if my food was cut with some cheap (and maybe unhealthy) substitute, etc. So I do think some government (or preferably, industry) action is required - labeling laws and enforcement for example. If the govt and industry focused on transparency, and opening up closed markets, I think we would all be better off.
Keeping the regulation simple but effective will encourage competitive capitalism, which results in more jobs and more value to consumers, which helps the "little guy".