It’s hard to imagine a more irrational way to organize society. Capitalism prides itself on allocating resources well – if it creates inequality, its defenders argue, at least it also creates growth. Increasingly, that’s no longer the case. In its infinite wisdom, capitalism is eating itself alive. A saner system would recognize that innovation is too precious to leave to the private sector and that capitalism, like all utopian projects, works better in theory than in practice.