CAPITALISM AND FAILURE; DEMOCRACY AND FAILURE.

CAPITALISM AND FAILURE; DEMOCRACY AND FAILURE. Taleb in THE BLACK SWAN makes an original argument for free markets. He argues that capitalism is superior to other systems mainly because it encourages risk taking and failure. I have seen an analogous argument for democracy (or regular elections). The choices made may not be the best, but there is an institutional framework for correcting mistakes. Taleb believes that great technological advances come about primarily through luck. He has lots of examples on his side (penicillin, for example). Whether the technological change comes from planning or luck, the important thing is to try lots of things and keep the winners.