The world learned a counterintuitive but central insight about capitalism during the 20th century: It’s just too productive. It tends to create much more supply than there is effective demand.

This doesn’t mean that capitalist countries don’t have children who go hungry or people who need to buy a new car but can’t. Far from it. Rather, it means that capitalism is extraordinarily inventive and usually generates the physical ability to produce that food and those cars — but not enough customers who can afford to buy it all. Simultaneously, there will be a small number of billionaires at the top with far more money than they could ever spend.

Jon Schwarz on inefficiencies.

Timely reminder for the next time someone tries arguing about market-based structures being the most “efficient” way of organizing everything from cell phone manufacturing to healthcare…