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You'd still get dividends. This is the point of confusion: media often presents growth as == profit. But growth is growth in profit. The derivative of profit;
by _bxg1 7y ago
You'd still get dividends.
This is the point of confusion: media often presents growth as == profit. But growth is growth in profit. The derivative of profit; expanding profits, over time. A company that doesn't grow at all continues to output just as much profit, just not more profit.
- 0xffff2 7y agoYes, but dividends aren't going to provide you with a 7% return, and most people that can afford to plan for retirement on the basis of 7% returns can't afford to do so on the basis of ~3-4% you might expect from dividends.
- _bxg1 7y agoSure. It wouldn't be a quick-fix; other parts of the system would have to adjust. But it isn't fundamentally infeasible: there's still a positive flow.