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Theorists of capitalism long argued that it and it alone could efficiently distribute resources across an economy (though not, oddly, within a firm).

This might be true in an economy whose rules about contrantracts, commerce, and property relations were fixed and predictable, but most economic simulations overlook or sidestep the fact that the most powerful economic incumbents can and do adjust the legal conditions to maximize their own gain.

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Adam Smith had recognised that in “Wealth of Nations”.

He goes on to conclude that “the mercantile system” allows the “merchants and manufacturers” to pervert legislation towards their “sole end and purpose” – production for profit – and away from the legitimate “sole end and purpose” of production – to satisfy human needs.

He also points out that the interests of these manufacturers, have been “peculiarly attended to” by the government.

Capitalism can't do that without redistribution in the form of severe taxation of the wealthy. That's why we need to revive estate taxes and inheritance taxes: in their absence, great dynasties of incredible wealth are formed and then sit idle for decades or even centuries, protecting themselves in trust fund fortresses to no particular end than their own existence.

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