ah good response! I wonder in a software-dominated economy, will monopoly be easier to achieve? You mention that “competitors will pop up, driving transportation costs down”
I don’t think the traditional models of capitalism apply to a software-driven economy, as the marginal cost of production for software is zero. It’s much harder to compete based on costs, since it’s a challenge to optimize near-zero costs. Instead companies compete on generating as much revenue as fast as possible. See Amazon, Facebook, Apple, Google, Microsoft recently.
Also just out of curiosity — why the strong distaste for socialism? Arguably most “capitalist” countries today are welfare capitalist and halfway to socialism already