
Humans aren’t inherently selfish, brutal, or greedy. They’re self-interested, which is completely different. It’s good to have systems that harness self-interest for the benefit of others. Systems without proper incentive structures tend to have worse outcomes for the very people they’re intended to help.
Ok well the incentive structure for capitalism is to work hard enough to escape capitalism so that may kind of tell you how people really feel about it. Are people not self-interested in improving their communities through volunteer work already? Why are they doing that with no profit incentive?
I think you’re misunderstanding how economists use the idea of profit. It doesn’t only mean money, it means any net benefit or utility gained. By volunteering, you’re still acting in self-interest by pursuing non-monetary rewards like satisfaction, meaning, or the good feeling that comes from helping other people.
Then why not create a system incentivizes this sort of self-interest? And yeah when considering how destroyed much of the world is, obviously people with no better options would flock here. This is not a win for America, in fact it is a clear symptom of how capitalism underdevelops and exploits other poorer (and usually majority nonwhite!) nations. The gusanos are a really funny example to draw on though
Because that type of self-interest is not as consistently strong of an incentive. Some people are more generous than others, and even generous people get worn down when things get difficult or when they’re asked to help too many strangers with no additional personal material gain. It also fails the economic calculation problem because it doesn’t create the production signals that a free market does.
Congratulations on discovering the Baumol effect. The fact that services rise in price faster than goods is a sign that wages are rising which is a good thing. I’d also note the role the government has had in creating poor incentive structures in the areas highlighted on that graphic.
None of this refutes anything. Its obviously true that a median or mean will not reflect everyone’s individual experience and that some prices rise faster while others rise slower or fall. The majority of Americans however, can afford more now than they could in the past. That remains true.