I studied capitalism in college because it was a particular interest of mine. I hated it. I also wanted to understand it, so that I could know why it rubbed me the wrong way and live intentionally to push against it.

There was this moment when I was in a grad course and the professor was talking about self-optimizing markets. That's when it hit me. I literally stood up in the class, interrupted everything and went like "wait, the math isn't optimizing for income inequality". It was kind of funny watching more than 100 little economists in training suddenly start tearing apart the equation at once. You could literally hear the sound of frantic spreadsheeting and charting.

In the end, the professor himself said that it was true, you could achieve a fully "optimized" economy with literally everything being owned by a handful of people. Made me think.

How is a system supposed to be beneficial for us all when the mathematics at its core don't actually consider societal benefit?

If an economy is fully "optimized" but everyone is sick, sad, and angry - is it actually optimal?

A mathematical model can make sense without being sensible. This is why I have an implicit distrust of algorithms and other systems of optimization. It's also why I'm a socialist.

Thank you for coming to my TED talk.

@scarlet As I’ve heard it put quite succinctly: “slavery is Pareto-optimal”.
@curtosis @scarlet Yes. That's why it was so popular. As were work houses and the current for profit prisons with their prison labour. It's why manufacturing moved overseas to lower cost centers. It's why there is such an embrace of automation. All this is known to true capitalists. Capitalism does nothing for wages and works best with literally no human workers. It works towards this outcome everyday.
@wasootch @curtosis @scarlet
I would ask to differentiate:
A MARKET ECONOMY tends towards optimization, because everyone will buy the cheapest offer - which is good for us, because THIS is the mechanism that COULD help mankind have a good life with not so much labour. We have taken wind and water mills for normal, while they relieved of a lot of manual labour, same for washing machines. And eg the cost of telephone calls has come down a lot!
@wasootch @curtosis @scarlet
Like @Drezil pointed out, it is a CHOICE what the market economy is optimizing for!