True to an extent.
Back when all banks were local institutions that only used depositors’ money for local investment, living standards universally rose.
But now the global interconnectedness of the markets allow for profits to be made in far away places where externalities are only felt by the local stakeholders and not felt by the investors or shareholders. In this environment Government is the only entity powerful enough to regulate financial behavior since relying on moral judgement has proven ineffective. And unfortunately the regulation has been written by interest groups and congressional staff unqualified to provide substantial oversight.
Once again, I like capitalism but I love and crave competence the most.
Same dynamic happened in colonial times.
Sure, things can get over-extended and the end result of taht will be the implosion of business engaged in such. That's a characteristic of free trade...it creates its own winners and losers depending on how consumers respond.
Yes, competence is great and is a characteristic (of course) to be desired in all peoples in all walks of life.
Capitalism is more of practical theory on the operation of society in general. As a philosophy directing the operation of society which includes the competent as well as the incompetent it is superior to others.
Huh? That statement it illogical and indicates a brainwashing in your MBA programs. It indicates to me that the "elites" at your university has filled your brain with falsehoods.
Please explain further the reasoning behind your statement.
I suggest you read up on Joseph Schumpeter and "creative destruction." Capitalism, if left alone, will always reward the most competent among us.
Many of the faults attributed to capitalism are actually the result of government intervening on behalf of businesses that don't want open and free competition. This is better known as Crony Capitalism (which is really a product of government actions).