So making money in the stock market only works if the pie keeps on expanding? I think that’s a way to take advantage of the fact that our economy is expanding, but I don’t think that’s the definition of capitalism.
Your original point was that the pie doesn’t need to keep expanding, so you have been disproved I would say. Saying that the economy need to keep expanding is the same as saying the economy is based on infinite growth. If it stops expanding the stocks are not profitable anymore and the shareholders are going to vote to replace CEOs, so the CEOs have an incentive to make he companies grow at any cost.
So making money in the stock market only works if the pie keeps on expanding? I think that’s a way to take advantage of the fact that our economy is expanding, but I don’t think that’s the definition of capitalism.
Your original point was that the pie doesn’t need to keep expanding, so you have been disproved I would say. Saying that the economy need to keep expanding is the same as saying the economy is based on infinite growth. If it stops expanding the stocks are not profitable anymore and the shareholders are going to vote to replace CEOs, so the CEOs have an incentive to make he companies grow at any cost.