I agree with you in part, capitalism has brought billions out of poverty and backbreaking labour. When you compare serfdom to pretty much any alternative is better. You will also notice if you read the data correctly that individual wealth has risen across the board. Everyone has more than they would have otherwise had in the 1950s. That's great but it doesn't mean that economic discussion is now over because all arguments have been won and lost.
What I was wondering about in my post was what happens when capital no longer requires much labour. This is happening now, hedgefunds are a great examples of this. They are amazingly efficient and produce very large sums of capital for the amount of labour required (revenue per employee). I'm not saying all labour is equal, I am saying capital is producing more in industries with less labour. Potentially, a financial model could get so good (or so stable) that it requires only minor updates to the system in order continue deriving a profit. You then have a situation where capital creates capital with only a statistically insignificant amount of labour. Efficiency pushes the system forward and delivers much to people while people have a valuable product to sell, their labour. When their labour is not valuable, they are unemployed. If their labour cannot generate enough value, why would they ever be employed in an ultimately efficient system?
My argument still stands, if you would like to respond to it. Why would capitalism suddenly change to give accumulated wealth back? Will the masses just rely on philanthropic whims?
