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I wish people would stop comparing a stock (market cap) with a flow (GDP).
by vegabook 1y ago
I wish people would stop comparing a stock (market cap) with a flow (GDP).
- ksec 1y agoThat is the whole point, to make company much bigger than they actually are and shift the power back to smaller player, in this case the state and GDP. If you compare annual revenue to GDP all of a sudden these so called maegacrop are tiny.
- andruby 1y agoCan you also expand on why? Especially in this case I do feel like it’s an (imperfect) proxy for power they wield.
- RReverser 1y agoBecause one is annual, and the other is just total. The equivalent of GDP for corporations would be annual revenue.
- Andrew_nenakhov 1y agoThe same reason you don't compare speed with distance. Distance is meters, speed is distance per the unit of time, meters / seconds, m/s. Likewise, market cap is measured in monetary units, dollars, euros, etc., while GDP is measured in money per the unit of time: $XXXX / year.