Too few understand that what besets capitalism is unknowable risk – the risk of transformative new technologies, the risk of making epic business mistakes, or the risk of there being no demand for the goods and services a business produces. The task of government is to mitigate those risks – funding new technologies and actively using the tools of financial, fiscal and monetary policy to ensure there are rewards from innovation and investing. The paradox of successful capitalism is that, one way or another, risk has to be socialised.
If the risks are unknowable then how can those clever technocrats in government plan what to invest in?
If we really are fumbling in the dark then we cannot have planning, can we? We have to have the experimentation of the free market.