Well, we could say that humans set up the system, couldn’t we? I beg to differ that the flaw doesn’t lie (at all) with fallen human nature, if that’s what you’re saying.
I agree.
That is one definition, certainly, and is what the world has experienced.
Humans don’t “set up” a system. It is not planned. People don’t just gather around and say, “hey, let’s start socialism today”. This is a misconception. An economic system arrives organically. Karl Marx believed that socialism would arrive organically because of a philosophy called “historical materialism”. What Marx believed was that every economic system had an inherent contradiction that would lead to its own downfall. In the case of Capitalism, this supposed contradiction was the growing disparity between the two classes: Bourgeiosie and Proletariat. A revolution by the Proletariat (working-class) would bring down Capitalism, and usher in Socialism.
Of course, all of economic theory and history proves this to be quite incorrect. For starters, historical materialism only explains European history. It doesn’t explain the fact that some countries made a leap to Capitalism by jumping a few stages (indeed, even Marx acknowledged this, but took the easy way out and considered them as mere exceptions).
As for humans having fallen which is why socialism does not work, I dispute this. However, I do believe that when Mankind fell, God introduced the law of scarcity (that there will be a finite number of resources) upon Mankind as punishment. This can be seen when God curses Adam, exclaiming that “cursed is the ground because of you; through painful toil you will eat of it all the days of your life” (Genesis 3:17). What this demonstrates is before the Fall, Mankind had a sufficient number of items to satisfy himself. There was no excuse whatsoever to eat the apple. After the Fall, it radically changed Nature as we knew it, and the LORD cursed Man by instituting a finite number of items that could be used. This meant that Humans would
always have to work to reap the relatively few items that existed to fulfill his own wants and needs. This belief is verified by the fact that the Garden of Eden, like all versions of a utopia, has historically been portrayed as a place abundantly rich in resources. Post-scarcity economists (those who wish to do away with the law of scarcity) in my opinion are fighting a losing battle.
I study economics and I’m taking an economic approach to interpretation of the Bible. I don’t think anyone has done this so far

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Thank you,
Eugen von Böhm-Bawerk