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It feels a little inevitable though, given the other rules of the system: Companies don't become more valuable by having a steady earnings forecast, they become

It feels a little inevitable though, given the other rules of the system: Companies don't become more valuable by having a steady earnings forecast, they become more valuable by having an _increase_ in earnings that is forecast to continue increasing. How can everything always increase? Well when you reach market saturation on one product, start a new product in a different market. What if all the markets seem saturated? Find a new thing to commoditize, a new market to create... Any system where unlimited growth is rewarded is going to try to take over everything it possibly can.

bell-cot 3y ago
In many ways, the growth obsession is a product of the Reagan-era deregulation craze, and the "Greed is the One True God" ethic that kinda took over Wall Street then. (Try reading some stories about GE before Jack Welch became CEO, and after.) Other big contributors: - The huge sums of wealth which tens of millions of ordinary people feel they need to accumulate, to pay for their (grand)?children's college education, unexpected medical bills, many decades of retirement and elder care, etc. Compare that to (say) the 1950's. - The huge structural and social barriers to creating small businesses in most economic sectors, compared to (say) 60 years ago. Back then, how many of the businesses in an average town were (at most) small-ish, family-owned companies? - How d*mn much "money" is sloshing around the financial system these days, with the "at any sign of crisis, pour in more $trillions" monetary policies of the Fed.
- q845712 3y ago
  > the growth obsession is a product of the Reagan-era I hear you, but uncle Karl names and shames the growth-obsession in Das Kapital which predated Reagan by over 100 years. It's a part of the system that many people have incentive to deny, hide, or minimize, but endless growth seems to be a requirement of "the system of organizing our resources that prioritizes turning capital into more capital" aka capital-ism.

bell-cot 3y ago

In many ways, the growth obsession is a product of the Reagan-era deregulation craze, and the "Greed is the One True God" ethic that kinda took over Wall Street then. (Try reading some stories about GE before Jack Welch became CEO, and after.) Other big contributors: - The huge sums of wealth which tens of millions of ordinary people feel they need to accumulate, to pay for their (grand)?children's college education, unexpected medical bills, many decades of retirement and elder care, etc. Compare that to (say) the 1950's. - The huge structural and social barriers to creating small businesses in most economic sectors, compared to (say) 60 years ago. Back then, how many of the businesses in an average town were (at most) small-ish, family-owned companies? - How d*mn much "money" is sloshing around the financial system these days, with the "at any sign of crisis, pour in more $trillions" monetary policies of the Fed.

q845712 3y ago
> the growth obsession is a product of the Reagan-era I hear you, but uncle Karl names and shames the growth-obsession in Das Kapital which predated Reagan by over 100 years. It's a part of the system that many people have incentive to deny, hide, or minimize, but endless growth seems to be a requirement of "the system of organizing our resources that prioritizes turning capital into more capital" aka capital-ism.