(a) There is a vast difference between the state-finance sector, and the entrepreneurship-venture capitalist sector. There are severe issues with the state-finance sector. they have everything to do with credit and political manipulation, and nothing to do with entrepreneurship and investment. The injustice is largely in credit sector in the usa, not the entrepreneurial.
(b) The stock market provides a lottery effect for entrepreneurs, and access to capital by which large companies can offload research and development, and reward innovators. There is a reason that the stock market is in the USA and the Bond market in London, and heavy industry in Germany, and military industry in Russia: risk-reward.
(c) The venture capitalist industry is marginally profitable, but when it is profitable it is very profitable. However, because of this lottery effect, many, many companies are started and much innovation happens. Meanwhile calcification occurs at established companies as rents are maximized by employees, management, unions, creditors.
(d) —“You leap to the conclusion that the best capitalists must innovate, which is an incorrect leap. “— Not sure if you’re being dishonest here but I am saying ALL entrepreneurs must innovate, and all capitalists (financial sector) must constantly search for innovators. The reason is that it is nearly impossible to preserve capital at regular rates of inflation. Today, speculating on commodities and investing in property and investing in consumer and business debt provides the principle means by which the financial sector prevents LOSSES. So this is the problem with leftist thinking (people who have never had money or responsibility) it’s that the central problem of making money is entrepreneurial. The central problem of HOLDING money is preventing losses from the continuous process of inflation the government uses to maintain employment.
(e) —“What has the capitalist actually “produced”? — You are falling into the error that production has value rather than organizing people to invest, produce, distribute, and exchange. In other words, what do distributors produce? What do retailers and wholesalers produce, what do investors produce, and what do owners, management and staff produce? the answer is that all of us transform state, but only the LEAST SKILLED transform materials. Meanwhile all of the rest is transforming TIME using incentives, using opportunity and money.
(f) People aren’t interested in just profits. There is no evidence of it. Entrepreneurs and venture capitalists are interested in doing good for family, friends, customers, and society, because status signaling is the only meaningful reward once you have wealth.
(g) as far as I can tell it’s not capitalists (entrepreneurs) that are parasitic but the financial sector, politicians, and unions and socialists.
IT is very clear to any of us who have had wealth and responsibility how childlike and victims of Dunning-Kruger overconfidence that well intentioned fools are.
It is very very difficult to build a company, you do it at huge risk to yourself, your health, and our family and your investors. And almost all of them fail. The lottery effect of a market encourages people to take risks and fail. If you eliminate the lottery effect of the market then there is no incentive to take risks given the rate of failure.
What % does your supermarket make? 1% Your gas station? .2%, most businesses? 8%. What is the rate of inflation? 3+%. A very, very, small number of outliers
PROFIT BY SECTOR
Here is a list of profitability by sector:
NET MARGIN COLUMN
The ONLY high profit businesses are in Finance, Banking, and Power.