The problem with capitalism is that it builds entire empires on old technology, and when there are better solutions available that benefit the human race as a whole those organizations do not want to evolve to embrace it.
I think there's an element of that - established companies do what they can to keep their advantage. But capitalism also allows 'creative destruction' (the term of Joseph Schumpeter came up with) - a new company comes along with a new idea which is more effective/efficient/attractive, and it displaces the existing business. Think of the ipod replacing iriver (was it called that? I had one) or Creative mp3 players, or shoe-making machines destroying hand-made shoemakers. Having said that, I think it's true that established 'empires' lobby government to try to extend the life of their businesses, and also that, at times, government regulations/legislation hamper the growth of something new/better, without even really meaning to.
The problem with capitalism is that it builds entire empires on old technology, and when there are better solutions available that benefit the human race as a whole those organizations do not want to evolve to embrace it.
I think there's an element of that - established companies do what they can to keep their advantage. But capitalism also allows 'creative destruction' (the term of Joseph Schumpeter came up with) - a new company comes along with a new idea which is more effective/efficient/attractive, and it displaces the existing business. Think of the ipod replacing iriver (was it called that? I had one) or Creative mp3 players, or shoe-making machines destroying hand-made shoemakers. Having said that, I think it's true that established 'empires' lobby government to try to extend the life of their businesses, and also that, at times, government regulations/legislation hamper the growth of something new/better, without even really meaning to.
It works for certain things, and fails badly for others...