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I worry though that relying on dividends will result in little actual income for the government. It relies on stability in the company, but companies are always
by RugnirViking 7y ago
I worry though that relying on dividends will result in little actual income for the government. It relies on stability in the company, but companies are always either in growth mode or collapse.
For example, amazon dividends have been $0 for a long time because like many companies in the modern economy, they reinvest profits. Shareholders are okay with this, because their shares increase in value, and a tiny bit because future bonds could exist.
However, in the modern economy companies seem to always reinvest profits right up until they collapse under their own weight.