Let's continue the example. Established owns a $1 billion factory (equipment and real estate) to make it's $100/year profits. Growth doesn't own anything yet,

Let's continue the example. Established owns a $1 billion factory (equipment and real estate) to make it's $100/year profits. Growth doesn't own anything yet, they have to build that factory before they get their profits. ---------- The $1 billion factory will itself be worth $1.07 billion after 7% inflation, and the $1.14 the year after that (after another 7% inflation).