About the author:
Daniel is CTO at rhome GmbH, and Co-Founder at Aqarios GmbH. He holds a M.Sc. in Computer Science from LMU Munich, and has published papers in reinforcement learning and quantum computing. He writes about technical topics in quantum computing and startups.
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# Ode to capitalism

The Role of Capitalism in Addressing Contemporary Challenges

This perspective examines the current challenges facing humanity as opportunities for growth and innovation, akin to past historical instances such as the World Wars. It contends that despite the prevalent challenges, capitalism remains an efficient solution. Optimistic figures like Warren Buffett have reaped rewards during such turbulent times. The Product-Market Fit (PMF) process in building startups is instrumental in selecting businesses that create value, while others naturally fade. Capitalism, due to its incentive structure, continues to be a powerful driver of innovation. Despite human selfishness, it fosters collaboration. In contrast, a shift to communism or a full welfare state may diminish personal motivation. The resolution of issues in these systems typically relies on voluntary effort. Some government intervention can provide an impetus, but the majority should be left to the free market and capitalism.

Regarding the concept of endless growth, it's intriguing to note the correlation between dire predictions and population growth in recent decades. The outlook suggests a deceleration in GDP growth in OECD countries, and consumer saturation prevails. This pattern illustrates a reversed "S" curve, characterized by exponential growth followed by a plateau. While China, India, and Africa currently propel global growth, even their population growth forecasts have been adjusted downward due to faster wealth accumulation. This adjustment signals their eventual transition into a phase of diminishing growth (Saunders, 2016).

A recent study by the OECD supports this assertion, highlighting a trend of declining resource consumption in OECD countries. "The materials intensity of the global economy is projected to decline more rapidly than in recent decades — at a rate of 1.3% per year on average — reflecting a relative decoupling: global materials use increases, but not as fast as GDP" (OECD, 2008, 2018, 2020).

While capitalism presents its own set of challenges and is far from perfect, it continues to exhibit adaptability and innovation. It does not inherently drive infinite exponential growth. However, there is substantial cause for optimism, as humanity has historically overcome challenges. Hence, I remain fully invested in stocks, confident in our ability to navigate the future.


Saunders, H. (2016). "Does Capitalism Require Endless Growth?". Retrieved from https://thebreakthrough.org/journal/issue-6/does-capitalism-require-endless-growth

OECD. (2020). Toward a More Resource-Efficient and Circular Economy. Retrieved from https://www.oecd.org/environment/waste/OECD-G20-Towards-a-more-Resource-Efficient-and-Circular-Economy.pdf

OECD. (2018). Global Material Resources Outlook to 2060. Retrieved from https://www.oecd.org/environment/waste/highlights-global-material-resources-outlook-to-2060.pdf

OECD. (2008). Waste Management and Circular Economy in OECD-G20 Countries. Retrieved from https://www.oecd.org/environment/waste/47944428.pdf

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