Comment by Ray20

>This is why regulations and regulators with teeth are vital in a capitalist system.

Why do you separate regulators from describing incentive system? The incentive system is also woven into them, and if anything, the incentives for regulators go in a much more sinister direction than for any capitalist company.

Profit-seeking companies are forced to satisfy customers that have their economic freedom. But what about regulators? Their primary incentive is to remain in a position of power, their primary tool for achieving their goals is forcing.

The economic freedom of all agents is a powerful disincentive. And even with it, we see abuses by capitalist companies. But what about regulators, whose disincentives are much weaker, and whose main tool, moreover, allows them to destroy even this weak disincentives? Fixing capitalism's incentives with regulators is like curing a cold with cancer.