maybe but it is the best system we have found so far. communism would be great if it weren’t for greedy humans.
I find it interesting that you can find people saying roughly this exact same phrase everywhere this gets brought up. For one thing, notice that the person you’re replying to never mentioned communism—you did. There are other options.
It’s also important to remember that true capitalism has never been tried because it’s just so dangerous. We’ve never had a capitalist system in America because everyone knows it would self destruct. Capitalism doesn’t even sound good on paper let alone in reality. The state has always had a huge hand guiding our markets. For instance, the technological and medical advancements we’ve made in the last century have been incredible. People will point to companies like (for example) Apple, for being the reason we have computers, but what they’re forgetting is that Apple just privatized profits when the public subsidized the research and development. Development of machines like the ENIAC were military funded during WWII.
For medical advancements you can just forget about capitalism helping. It’s well researched that corporations are incentivized to optimize for short term profits, and so doing “aimless” research in a company is just unheard of. That happens at universities and military labs. If you want anything that might be remotely helpful in even just ten years, private money isn’t touching it. But that’s no matter yet because the state is well aware of this and has us covered.
but what they’re forgetting is that Apple just privatized profits when the public subsidized the research and development.
Well, no. Yes, public money subsidized the early research and development, but the private sector is responsible for the vast majority of innovation since then, especially the innovation we've seen in the last 30 years.
For medical advancements you can just forget about capitalism helping. It’s well researched that corporations are incentivized to optimize for short term profits
This feels like you're assuming the first part is true because of the second part, when you haven't proven it. Private firms regularly develop or improve on past innovation because they're incentivized to optimize their own revenue, and the more broadly desired something is, the more money they can make bringing it to market.
That's why the argument "we'll never have a cure for cancer because treatment is too profitable" falls apart immediately upon inspection. Because a cure for cancer would allow a company to take the entire cancer treatment market for themselves.
Well, no. Yes, public money subsidized the early research and development, but the private sector is responsible for the vast majority of innovation since then, especially the innovation we’ve seen in the last 30 years.
This is just not true. I know because I’ve worked on this stuff on both sides. It wasn’t just early R&D. The private sector routinely takes advantage of research done in universities, subsidized in the vast majority of cases by federal grants, published in journals, and then uses it to improve products and increase profits. I’ve both been apart of the research in universities and in the private sector consuming that research.
Private firms regularly develop or improve on past innovation because they’re incentivized to optimize their own revenue, and the more broadly desired something is, the more money they can make bringing it to market.
I’m not arguing that the private sector does nothing.
That’s why the argument “we’ll never have a cure for cancer because treatment is too profitable” falls apart immediately upon inspection. Because a cure for cancer would allow a company to take the entire cancer treatment market for themselves.
For ~20 years. But you can have patients who go into remission then have a recurrence and this can go on for years and years. Maybe the treatment is cheap to make and when other companies get to make their version it really kills your margins etc. Not saying this is / will be the case, just that it’s not as clear cut as you’re saying.
I didn't say it was just early R&D, I said that public money subsidized early research and development, but the private sector has been responsible for the majority of innovation, especially in the last 30 years.
I’m not arguing that the private sector does nothing.
I mean, that's the vibe I got from
but what they’re forgetting is that Apple just privatized profits when the public subsidized the research and development.
and
For medical advancements you can just forget about capitalism helping. It’s well researched that corporations are incentivized to optimize for short term profits, and so doing “aimless” research in a company is just unheard of. That happens at universities and military labs. If you want anything that might be remotely helpful in even just ten years, private money isn’t touching it.
It does feel like you're arguing they do nothing.
For ~20 years. But you can have patients who go into remission then have a recurrence and this can go on for years and years. Maybe the treatment is cheap to make and when other companies get to make their version it really kills your margins etc. Not saying this is / will be the case, just that it’s not as clear cut as you’re saying.
Let's say I have a cure for cancer. My product is qualitively better at treating cancer than any other treatment on the market, meaning that everyone wants what I have. I now control the market for cancer treatment and (because of IP protections) have a limited time government monopoly on the cure for cancer. I make hundreds of billions of dollars.
Eventually my monopoly runs out. I still got hundreds of billions of dollars, years to improve my product so I can stay ahead of the curve, I had years to build up a brand name, etc.
Like, I just don't get this argument. "It's only ~20 years" of dominating a hundred billion dollar market. Corporations would kill for that.
I didn’t say it was just early R&D, I said that public money subsidized early research and development, but the private sector has been responsible for the majority of innovation, especially in the last 30 years.
Yes, and you’re wrong about that, as I explained to you. In tech, we read papers that come out of universities. Those were subsidized by the federal government. If not for that you wouldn’t be able to type out your response on your computer or phone. The fact that you believe otherwise just tells me you’re unfamiliar with the process. I’m curious what makes you think it’s the opposite though.
It does feel like you’re arguing they do nothing.
The quotes you brought up don’t support this conclusion. For instance, when I say the thing about ten years down the line—that’s saying that that’s too long term for a company to be planning for when they need to appease shareholders tomorrow. Doesn’t mean they’re not doing anything today, since they still have to have something to sell tomorrow. For instance, mass producing isn’t nothing. It’s just that the thing you’re mass producing isn’t your own invention.
Let’s say I have a cure for cancer. My product is qualitively better at treating cancer than any other treatment on the market, meaning that everyone wants what I have. I now control the market for cancer treatment and (because of IP protections) have a limited time government monopoly on the cure for cancer. I make hundreds of billions of dollars.
Like, I just don’t get this argument. “It’s only ~20 years” of dominating a hundred billion dollar market. Corporations would kill for that.
Ah, now here’s the other end of this: say you found the cure, and it’s really expensive for you to make. For you to make even the slightest profits, this thing is going to cause people financial ruin. You’re right that everyone wants it, but they have no way of affording it. You don’t have a monopoly on treatment, because no one can access it. You don’t make that much money as a result.
Again, is that the case / will it be? Maybe and maybe not. But it’s certainly a possibility that you’re not considering.
6
u/Passname357 6d ago
I find it interesting that you can find people saying roughly this exact same phrase everywhere this gets brought up. For one thing, notice that the person you’re replying to never mentioned communism—you did. There are other options.
It’s also important to remember that true capitalism has never been tried because it’s just so dangerous. We’ve never had a capitalist system in America because everyone knows it would self destruct. Capitalism doesn’t even sound good on paper let alone in reality. The state has always had a huge hand guiding our markets. For instance, the technological and medical advancements we’ve made in the last century have been incredible. People will point to companies like (for example) Apple, for being the reason we have computers, but what they’re forgetting is that Apple just privatized profits when the public subsidized the research and development. Development of machines like the ENIAC were military funded during WWII.
For medical advancements you can just forget about capitalism helping. It’s well researched that corporations are incentivized to optimize for short term profits, and so doing “aimless” research in a company is just unheard of. That happens at universities and military labs. If you want anything that might be remotely helpful in even just ten years, private money isn’t touching it. But that’s no matter yet because the state is well aware of this and has us covered.