And apparently Einstein was not immune to this … disease of the mind:

Is it advisable for one who is not an expert on economic and social issues to express views on the subject of socialism? I believe for a number of reasons that it is.

When Einstein speaks on a scientific matter, he deserves all the attention one can pay—although he was occasionally wrong (EPR paradox and existence of blackholes) his genius earned that much respect. But, when he writes on a subject outside physics, then he is as smart as the next guy with 2-digit IQ.

This warning was uttered more than two millennia ago, supposedly by Socrates (see point 10). And it appears Einstein may have been aware of this warning. Then why did he choose to ignore it and so blatantly? Is it human nature to be stupid?

If anything, this is proof that capitalism works, when there are good capitalists (such as executives at Amazon) around, where there is enough competition (Sony’s new, cheaper readers provide real competition with wireless access, unlike iLiad’s readers, which are too expensive and lacks wireless), and where there is not enough regulation to choke the life out of the market.

Competition will drive price down. We don’t need some sort of “consumer protection agency” forcing companies to charge a fair price. Remove the barriers to entry, and the “exorbitant” profits themselves will be the driving force behind the downward pressure in price—increasing supply, attracted to the good profit, ensures that.

Capitalism works not because of virtues of any one man or organization. It works the same way scientific community works: under the usually held assumptions, there is a self-correcting mechanism in place. In science, it’s the principle of peer review—unless the entire community is rotten to the core, bad research will out itself because no one will be able to reproduce it. In capitalism, it’s the price and competition—any misallocation of resources will correct itself because that precise misallocation is an opportunity for profit (see: international trade) and that profit attracts more competitors, which forces everyone to offer lower price or lose business.

On the other hand, socialism works only when there are benevolent, wise government officials. Are you really willing to take that chance?