Sublime

emphasizes transportation costs as the limiting factor determining the extent of cities (and markets). A fertile twist on this idea is to consider the city as a central labor market, where everyone works in the central business district and lives somewhere else.

It is a basic characteristic of market capitalism that market extremes and decentralized decisions can lead to market failures. It is a basic characteristic of politics that governance extremes and rigidities can lead to governance failures. Virtually every jurisdiction therefore has some combination of decentralized markets and government

This all points to a higher analysis; money itself is not the most important aspect of capitalism. Nor is trade, nor markets, nor profits, nor even assets, but capital. Goods that are used to create consumable goods are a form of capital, but really, we mean something less tangible than any of the former; a kind of economic potential energy stored

To an increasing degree, individuals capable of creating significant economic value will be able to retain most of the value they create for themselves. Support staff that previously absorbed a large part of the revenue generated by the principal income creators in an enterprise will be replaced by low-cost automated agents and information systems.

The distinction between fixed and circulating capital becomes permanently blurred.

Over- allocation of capital into the financial economy slows real economy growth rates andmisprices financial economy assets (artificially depressing savings yields). This mismatch, in turn, leads to financial crises as markets force adjustments between asset prices and the real economy cashflows that support them.