Post #2304167

2026-05-06 21:00 UTC

(2/8) Where I diverge from market fundamentalists, like Hayek, is that solving for “distribution” is incidental to market capitalism. Profit, not allocation, is the goal. Knowledge is useful insofar as it serves that end. This is the real “AI alignment problem” where the objective function (profit) is misaligned w/ desired outcomes (efficient distribution). Many profitable opportunities deliberately result in suboptimal distribution. https://misaligned.markets/capitalism-ai-alignment/

Replies (2)

@MidniteMikeWrites@zirk.us 2026-05-06 21:00

(3/8) Naive market fundamentalists miss a key detail: distributed knowledge isn't just about the game (competition), but the rules of the game. You can't escape this with a “small state.” The minute you grant a patent, you've interfered with the free market and created an attack surface that undermines all future competition. This is why capitalism is inherently political; it's a governance structure that imposes values onto markets. https://misaligned.markets/tension-market-capitalism/

Open ##2304168
@simon_brooke@mastodon.scot 2026-05-07 17:12

@MidniteMikeWrites@zirk.us Markets always, automatically, benefit the richer participant in any transaction; being 'richer' simply means one has more market power, and more ability to back away from an unfavourable trade. It is **impossible** for a market ever to distribute anything efficiently.

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