I think with fair rules, you would still get a Pareto distribution over time, but the “top” would constantly rotate and change. Whereas with crony-capitalism, those on top change the rules so they can stay on top permanently, until the system becomes so unstable that it collapses.

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I believe so. Capitalism without crony-capitalism is a meritocracy where business and products are not subsidized, stifled, and patents hidden to control the people. Products and business can then thrive for the advancement of the human race. Once this happens many of the suppressed technologies will be given back to the people.