--- title: "Meaning & Key Takeaway of: Capitalism allocates resources, generates…" description: "\"“Capitalism allocates resources, generates innovation, rewards effort, and builds affluence with high efficiency, and these are extraordinarily importa..." image: "https://sms4smile.com/quotes/i/c16/erik-brynjolfsson-9007_economics_capitalism-allocates-resources-generates_2212008.jpg" --- # Capitalism allocates resources, generates innovation… ![“Capitalism allocates resources, generates innovation, rewards effort, and builds affluence with high efficiency, and these are extraordinarily important things to do well in a society. As a system capitalism is not perfect, but it’s far better than the alternatives. Winston Churchill said that…” quote by Erik Brynjolfsson](https://sms4smile.com/quotes/i/c16/erik-brynjolfsson-9007_economics_capitalism-allocates-resources-generates_2212008.jpg) [Download](https://sms4smile.com/quotes/i/c16/erik-brynjolfsson-9007_economics_capitalism-allocates-resources-generates_2212008.jpg) [Open image](https://sms4smile.com/quotes/i/c16/erik-brynjolfsson-9007_economics_capitalism-allocates-resources-generates_2212008.jpg) > ““Capitalism allocates resources, generates innovation, rewards effort, and builds affluence with high efficiency, and these are extraordinarily important things to do well in a society. As a system capitalism is not perfect, but it’s far better than the alternatives. Winston Churchill said that, “Democracy is the worst form of government except for all those others that have been tried.”2 We believe the same about capitalism. The”” [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Capitalism efficiently distributes resources, spurs innovation, rewards effort, and creates wealth, though it has flaws and outperforms other systems. **In simple terms:** Capitalism works well but isn’t perfect. Key Takeaway Recognize capitalism’s strengths while seeking improvements. Themes economics innovation wealth governance comparison Mood analytical critical optimistic Type philosophical policy economic When to use this quote - business strategy - public policy debates - educational curricula - investment decisions Key Concepts market efficiency incentive structures public policy ethical considerations Questions to Reflect On - How can we mitigate capitalism’s negative externalities? - What reforms preserve its benefits while addressing its flaws? A Different Perspective Capitalism’s successes can mask systemic inequities and environmental costs. ★ ★ ★ ★ ★ No ratings yet [Believe Capitalism](https://sms4smile.com/quotes/about/believe-capitalism-838400/) [Capitalism](https://sms4smile.com/quotes/about/capitalism/) [Capitalism Allocates](https://sms4smile.com/quotes/about/capitalism-allocates-3374859/) [Capitalism Perfect](https://sms4smile.com/quotes/about/capitalism-perfect-3553738/) [Democracy](https://sms4smile.com/quotes/about/democracy/) [Economics](https://sms4smile.com/quotes/about/economics/) [Important things](https://sms4smile.com/quotes/about/important-things/) [Productivity](https://sms4smile.com/quotes/about/productivity/) [Society Capitalism](https://sms4smile.com/quotes/about/society-capitalism-4902728/) ## Related quotes > [Unrestricted laissez faire capitalism allocates resources in a most efficient way to satisfy human wants without regard to the rationality or morality of those…](https://sms4smile.com/quotes/jerry-pournelle/unrestricted-laissez-faire-capitalism-allocates-resources-in-a-most/) [Jerry Pournelle](https://sms4smile.com/quotes/author/jerry-pournelle/) > [Capitalism is not a perfect system. It may be better than all the other systems, but it's not a perfect system.](https://sms4smile.com/quotes/howard-warren-buffett/capitalism-is-not-a-perfect-system-it-may-be-better-than-all-the/) [Howard Warren Buffett](https://sms4smile.com/quotes/author/howard-warren-buffett/) > [Until the Great Depression, most economists clung to a vision of capitalism as a perfect or nearly perfect system. That vision wasn’t sustainable in…](https://sms4smile.com/quotes/paul-krugman/until-the-great-depression-most-economists-clung-to-a-vision-of/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [Point is, you can't find a country on earth with a higher standard of living. You can't find a country higher than America. You…](https://sms4smile.com/quotes/rush-limbaugh/point-is-you-can-t-find-a-country-on-earth-with-a-higher-standard-of/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [Liberal capitalism is not perfect, but compared to the other 'isms,' it's far superior.](https://sms4smile.com/quotes/ayaan-hirsi-ali/liberal-capitalism-is-not-perfect-but-compared-to-the-other-isms-it-s/) [Ayaan Hirsi Ali](https://sms4smile.com/quotes/author/ayaan-hirsi-ali/) > [“I don't believe in socialism but I don't believe in capitalism either. We are small, governments are large, we survive in the cracks. Cold…](https://sms4smile.com/quotes/maureen-f-mchugh/i-don-t-believe-in-socialism-but-i-don-t-believe-in-capitalism-either/) [Maureen F. McHugh](https://sms4smile.com/quotes/author/maureen-f-mchugh/) > [I believe that capitalism, at least how it's used by major corporations, and environmental concerns are in opposition. To be ecologically aware, productivity of…](https://sms4smile.com/quotes/henry-rollins/i-believe-that-capitalism-at-least-how-it-s-used-by-major/) [Henry Rollins](https://sms4smile.com/quotes/author/henry-rollins/) > [It's impossible for a white person to believe in capitalism and not believe in racism.](https://sms4smile.com/quotes/malcolm-x/it-s-impossible-for-a-white-person-to-believe-in-capitalism-and-not/) [Malcolm X](https://sms4smile.com/quotes/author/malcolm-x/) > [I believe capitalism will eventually be replaced by a communitarian ethic where the rights and care of all beings will be taken into consideration,…](https://sms4smile.com/quotes/terry-tempest-williams/i-believe-capitalism-will-eventually-be-replaced-by-a-communitarian/) [Terry Tempest Williams](https://sms4smile.com/quotes/author/terry-tempest-williams/) > [I truly believe that capitalism was created to help people live better lives, but sadly over the years it has lost its way a…](https://sms4smile.com/quotes/richard-branson/i-truly-believe-that-capitalism-was-created-to-help-people-live/) [Richard Branson](https://sms4smile.com/quotes/author/richard-branson/) > [I think you hear, at least as an undertone, and it's going to grow louder, is that we believe that capitalism is the mantra…](https://sms4smile.com/quotes/tim-scott/i-think-you-hear-at-least-as-an-undertone-and-it-s-going-to-grow/) [Tim Scott](https://sms4smile.com/quotes/author/tim-scott/) > [I believe that capitalism is the one thing in this world that's brought people out of poverty.](https://sms4smile.com/quotes/rick-harrison/i-believe-that-capitalism-is-the-one-thing-in-this-world-that-s/) [Rick Harrison](https://sms4smile.com/quotes/author/rick-harrison/) > [I'm a capitalist. I believe in capitalism. But capitalism only works if you have safety nets to deal with people who are naturally left…](https://sms4smile.com/quotes/thomas-friedman/i-m-a-capitalist-i-believe-in-capitalism-but-capitalism-only-works-if/) [Thomas Friedman](https://sms4smile.com/quotes/author/thomas-friedman/) > [This is an incredibly creative time. It is a difficult time. It is a disparaging time. A time of cultural and global transitions based…](https://sms4smile.com/quotes/terry-tempest-williams/this-is-an-incredibly-creative-time-it-is-a-difficult-time-it-is-a/) [Terry Tempest Williams](https://sms4smile.com/quotes/author/terry-tempest-williams/) > [I believe capitalism is dying a slow death right now, as you can see with the recession and with the credit crunch and with…](https://sms4smile.com/quotes/anjem-choudary/i-believe-capitalism-is-dying-a-slow-death-right-now-as-you-can-see/) [Anjem Choudary](https://sms4smile.com/quotes/author/anjem-choudary/) ## More by Erik Brynjolfsson > [“The greatest shortcoming of the human race is our inability to understand the exponential function.” —Albert A. Bartlett”](https://sms4smile.com/quotes/erik-brynjolfsson/the-greatest-shortcoming-of-the-human-race-is-our-inability-to/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“But analog photography peaked in 2000.2”](https://sms4smile.com/quotes/erik-brynjolfsson/but-analog-photography-peaked-in-2000-2/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“originated at the California research institute SRI International and was purchased by Apple in 2010, listened to what iPhone users were saying to it,…](https://sms4smile.com/quotes/erik-brynjolfsson/originated-at-the-california-research-institute-sri-international-and/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“Montessori classrooms emphasize self-directed learning, hands-on engagement with a wide variety of materials (including plants and animals), and a largely unstructured school day. And…](https://sms4smile.com/quotes/erik-brynjolfsson/montessori-classrooms-emphasize-self-directed-learning-hands-on/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“In fact, the ratio of CEO pay to average worker pay has increased from 70 in 1990 to 300 in 2005, and much of…](https://sms4smile.com/quotes/erik-brynjolfsson/in-fact-the-ratio-of-ceo-pay-to-average-worker-pay-has-increased-from/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“there’s never been a better time to be a worker with special skills or the right education, because these people can use technology to…](https://sms4smile.com/quotes/erik-brynjolfsson/there-s-never-been-a-better-time-to-be-a-worker-with-special-skills/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“Work saves a man from three great evils: boredom, vice, and need.”](https://sms4smile.com/quotes/erik-brynjolfsson/work-saves-a-man-from-three-great-evils-boredom-vice-and-need/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“Kodak made its founder, George Eastman, a rich man, but it also provided middle-class jobs for generations of people and created a substantial share…](https://sms4smile.com/quotes/erik-brynjolfsson/kodak-made-its-founder-george-eastman-a-rich-man-but-it-also-provided/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [Knowing how to keep someone motivated and how to keep a connection are skills humans have learned and evolved over hundreds of thousands of…](https://sms4smile.com/quotes/erik-brynjolfsson/knowing-how-to-keep-someone-motivated-and-how-to-keep-a-connection/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“The many years that we all spend in schools learning skills like reading, writing, and arithmetic—as well as the additional learning that happens on…](https://sms4smile.com/quotes/erik-brynjolfsson/the-many-years-that-we-all-spend-in-schools-learning-skills-like/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [Computers get better, faster than anything else ever. A child's PlayStation today is more powerful than a military supercomputer from 1996. But our brains…](https://sms4smile.com/quotes/erik-brynjolfsson/computers-get-better-faster-than-anything-else-ever-a-child-s/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“Steven Pinker puts it, “The main lesson of thirty-five years of AI research is that the hard problems are easy and the easy problems…](https://sms4smile.com/quotes/erik-brynjolfsson/steven-pinker-puts-it-the-main-lesson-of-thirty-five-years-of-ai/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“And the data on everything from air quality to commodity prices to levels of violence show improvement over time.”](https://sms4smile.com/quotes/erik-brynjolfsson/and-the-data-on-everything-from-air-quality-to-commodity-prices-to/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [“the message the labor market is clearly sending is that it’s much easier to create value with highly educated workers.”](https://sms4smile.com/quotes/erik-brynjolfsson/the-message-the-labor-market-is-clearly-sending-is-that-it-s-much/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) > [Technology has always been destroying jobs, and it has always been creating jobs.](https://sms4smile.com/quotes/erik-brynjolfsson/technology-has-always-been-destroying-jobs-and-it-has-always-been/) [Erik Brynjolfsson](https://sms4smile.com/quotes/author/erik-brynjolfsson/) [Explore all 75 Erik Brynjolfsson quotes ](https://sms4smile.com/quotes/author/erik-brynjolfsson/) ## More Capitalism quotes > [Don't let's lose sight of what creates wealth. It is open markets, it is capitalism.](https://sms4smile.com/quotes/rupert-murdoch/don-t-let-s-lose-sight-of-what-creates-wealth-it-is-open-markets-it/) [Rupert Murdoch](https://sms4smile.com/quotes/author/rupert-murdoch/) > [Crony capitalism is essentially a condition in which... public officials are giving favours to people in the private sector in payment of political favours.](https://sms4smile.com/quotes/alan-greenspan/crony-capitalism-is-essentially-a-condition-in-which-public-officials/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [Philosopher is a dictator who modifies accepted standards with his thoughts.](https://sms4smile.com/quotes/ilkin-santak/philosopher-is-a-dictator-who-modifies-accepted-standards-with-his/) [Ilkin Santak](https://sms4smile.com/quotes/author/ilkin-santak/) > [There is only one party in the United States, the Property Party...and it has two right wings: Republican and Democrat. Republicans are a bit…](https://sms4smile.com/quotes/gore-vidal/there-is-only-one-party-in-the-united-states-the-property-party-and/) [Gore Vidal](https://sms4smile.com/quotes/author/gore-vidal/) > [ Neither Italian fascism nor German national "socialism" have anything in common with such a \[Soviet socialistic\] society, primarily because private ownership of factories, plants,… ](https://sms4smile.com/quotes/joseph-stalin/neither-italian-fascism-nor-german-national-socialism-have-anything/) [Joseph Stalin](https://sms4smile.com/quotes/author/joseph-stalin/) > [Corporations have nothing to do with values, and they know it, and sometimes say it.](https://sms4smile.com/quotes/eric-kierans/corporations-have-nothing-to-do-with-values-and-they-know-it-and/) [Eric Kierans](https://sms4smile.com/quotes/author/eric-kierans/) > [Both fact and logic seem to me to support the view that savings invested in privately owned economic tools of production amount to an…](https://sms4smile.com/quotes/f-a-harper/both-fact-and-logic-seem-to-me-to-support-the-view-that-savings/) [F. A. Harper](https://sms4smile.com/quotes/author/f-a-harper/) > [The free market is ugly and stupid, like going to the mall; the unfree market is just as ugly and just as stupid, except…](https://sms4smile.com/quotes/anonymous/the-free-market-is-ugly-and-stupid-like-going-to-the-mall-the-unfree/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Capitalism, communism ... it's all garbage.](https://sms4smile.com/quotes/mstislav-rostropovich/capitalism-communism-it-s-all-garbage/) [Mstislav Rostropovich](https://sms4smile.com/quotes/author/mstislav-rostropovich/) > [There are no two countries with the same style of economic mechanism, with the same capitalism.](https://sms4smile.com/quotes/anatoly-chubais/there-are-no-two-countries-with-the-same-style-of-economic-mechanism/) [Anatoly Chubais](https://sms4smile.com/quotes/author/anatoly-chubais/) > [It is more than a little ironic that "capital accumulation" once a rather tendentious Marxian view of a supposed capitalist obsession, should have become…](https://sms4smile.com/quotes/robert-kuttner/it-is-more-than-a-little-ironic-that-capital-accumulation-once-a/) [Robert Kuttner](https://sms4smile.com/quotes/author/robert-kuttner/) > [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/) [John Adams](https://sms4smile.com/quotes/author/john-adams/) > [Socialism is humanity's second nature. All politicians do is turn human vice into votes.](https://sms4smile.com/quotes/ilana-mercer/socialism-is-humanity-s-second-nature-all-politicians-do-is-turn/) [Ilana Mercer](https://sms4smile.com/quotes/author/ilana-mercer/) > [“Scholars have long debated whether capital markets lead to appropriate levels of saving and investment for future generations.”](https://sms4smile.com/quotes/david-l-weimer/scholars-have-long-debated-whether-capital-markets-lead-to/) [David L. Weimer](https://sms4smile.com/quotes/author/david-l-weimer/) > [“A car is one of the most interesting inventions, but driving is one of the most boring activities.”](https://sms4smile.com/quotes/mokokoma-mokhonoana/a-car-is-one-of-the-most-interesting-inventions-but-driving-is-one-of/) [Mokokoma Mokhonoana](https://sms4smile.com/quotes/author/mokokoma-mokhonoana/) [Browse all 3,832 Capitalism quotes ](https://sms4smile.com/quotes/about/capitalism/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Capitalism allocates resources, generates innovation, rewards effort, and builds affluence with high efficiency, and these are extraordinarily important things to do well in a society. As a system capitalism is not perfect, but it’s far better than the alternatives. Winston Churchill said that, “Democracy is the worst form of government except for all those others that have been tried.”2 We believe the same about capitalism. 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