I think it is important to understand the limitations of the profit motive. Too often it is held up as some sort of panacea, as if all problems are the result of gov'ment getting in the way of heroic capitalists seeking glorious profits.

Fact is, unfettered capitalism will innovate to the direct extent and in ways that it is profitable to do so. Which is why you see very little "innovation" being done to benefit poorer citizens - why innovate for a market that can't buy what you're selling? Rather, let's spend millions developing "solutions" to the problems of those who have so very few of them. A sad irony, that.

This is where a well-run government can improve things - by artificially creating profit motives in important areas where there was none before. A tax on short-term investing or day-trading would be a great start to discourage utterly worthless short-term speculation and HFT, and is a great example of how unobtrusive policies can create desirable incentives.