The problem is that corporate capitalism is a system that delivers the best of both systems (capitalism and socialism) to a well-connected elite and the worst of both to everyone else. For a microcosm, look at commercial air travel. The experience (especially in the lower classes) is Soviet, but the fare-setting (read: price gouging) is hideously capitalistic.
Capitalism generates a set of wealthy people, who pull up the ladder by restricting society to the sorts of capitalism that enhance their wealth, while destroying any variety of business activity that challenges it. That's what we see in the VC-funded world. The VCs have enough capital to kill any fledgling business by funding (or creating, this being the purpose of EIRs) a competitor, but their note-sharing and co-funding makes of them a reputation economy that has more in common with the Politburo than a free-market system.
The problem isn't that capitalism is a bad system. It's that, when you don't have checks and balances that prevent financial and political power being traded for one another, you end up with a corporatist-statist structure rather than a free market. As power concentrates, it only gets worse.
Capitalism generates a set of wealthy people, who pull up the ladder by restricting society to the sorts of capitalism that enhance their wealth, while destroying any variety of business activity that challenges it. That's what we see in the VC-funded world. The VCs have enough capital to kill any fledgling business by funding (or creating, this being the purpose of EIRs) a competitor, but their note-sharing and co-funding makes of them a reputation economy that has more in common with the Politburo than a free-market system.
The problem isn't that capitalism is a bad system. It's that, when you don't have checks and balances that prevent financial and political power being traded for one another, you end up with a corporatist-statist structure rather than a free market. As power concentrates, it only gets worse.