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> Industries playing "zero sum games" (i.e. investment banking) _can't_ result in overall growth because there must be a loser for every winner, Actually, that
by geezerjay 9y ago
> Industries playing "zero sum games" (i.e. investment banking) _can't_ result in overall growth because there must be a loser for every winner,
Actually, that's not even remotely true. Just because a seller sells high it doesn't mean that the ones doing the buying are being left out to dry. Investors seeking long-term profits or cashing in dividends may be willing to buy without many concerns regarding current short-term market trends, and investors seeking short-term profits may be cashing out their shares to generate liquidity to invest somewhere else.
In the US,the Dow Jones industrial average is essentially showing constant growth for over a century, and this would not be possible if an economy was a zero-sum game. Economies do grow, and transactions can in fact be beneficial to all parties involved.