Do you have evidence to support this concern? If anything, the successful entrepreneur seems to have a demonstrated track record of good investment choices.
Also, don't forget that value is subjective, which makes it tricky to substitute your judgement to that of the entrepreneur.
Also, assuming your concern is valid, the owner of the capital still seems the best candidate, as opposed to, say, government which would suffer from the same problem on an even greater scale.
There are two important sets of concepts which help understand the rent-seeking behavior of political entrepreneurs:
-voluntary vs. coercive action
-legitimate laws/norms vs. legislation
A lot of the ills people often attribute to capitalism (the social system of ownership and voluntary exchange) can actually be traced back to illegitimate coercion and legislation.
The only conclusion I can reach is that constitutional boundaries and social constraints on the power of government (the monopoly on coercion and legislation) are crucial to keep entrepreneurs productive, as opposed to getting corrupted by temptation of easy power offered by an boundless government.
I recommend two Austrian economists, Mises and Hayek, for further reading on this.
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Re: Effective Deployment of Capital
Do you have evidence to support this concern? If anything, the successful entrepreneur seems to have a demonstrated track record of good investment choices.
Also, don't forget that value is subjective, which makes it tricky to substitute your judgement to that of the entrepreneur.
Also, assuming your concern is valid, the owner of the capital still seems the best candidate, as opposed to, say, government which would suffer from the same problem on an even greater scale.
Rent seeking
There are two important sets of concepts which help understand the rent-seeking behavior of political entrepreneurs:
-voluntary vs. coercive action
-legitimate laws/norms vs. legislation
A lot of the ills people often attribute to capitalism (the social system of ownership and voluntary exchange) can actually be traced back to illegitimate coercion and legislation.
The only conclusion I can reach is that constitutional boundaries and social constraints on the power of government (the monopoly on coercion and legislation) are crucial to keep entrepreneurs productive, as opposed to getting corrupted by temptation of easy power offered by an boundless government.
I recommend two Austrian economists, Mises and Hayek, for further reading on this.