A thought experiment:
(And, by "capital" I mean actual physical capital, not artificial "capital" ie. money.)
In a perfect society, capital is both abundant and highly-valued. This contradicts the law of supply and demand. In the free market, a thing can either be abundant or highly-valued, but not both. Thus, a free-market is incompatible with a perfect society.
Gold is, in a sense, a near perfect form of capital, in that it can be used to create many other things, and is very difficult to destroy. In the past, societies have subsidized the production and accumulation of gold, to the detriment of other forms of capital. This was beneficial, yet non-optimal.
Therefore, in a perfect society, there must be a mechanism in place to artificially bolster both the abundance and value of all forms of capital, but especially the best forms, according to their rank.
Discuss...
