4 ms·
In the current economic system, if capital is not growing, it’s reducing.
by blks 5mo ago
In the current economic system, if capital is not growing, it’s reducing.
- MikeTheGreat 5mo agoCan you explain this further? For example, if the market cap is $6B and has been for years, how is that reducing?
- BoorishBears 5mo agoHDDs, SSDs, RAM for their servers are all up what, anywhere 50% to >100% for the year?
- jacobgkau 5mo agoI think they're saying that inflation means the $6B is reducing in buying power.
- dchevell 5mo agoinflation … ?
- reverius42 5mo agoMy rule of thumb is inflation will eat half your principal every 20 years unless you're growing. An average of 3.5% growth will double every 20 years.
- reverius42 5mo agoA bank account (or a spread of bank accounts across different banks to stay under the FDIC insurance limit per-account) is way, way, way safer than a flat market cap publicly traded company -- and with the same or perhaps better rate of return. Stocks are "supposed" to give better rates of return than "flat", in exchange for the higher risk.
- blks 5mo agoInflation, plus if you’re not trying to grow your market share, competition will be taking it away from you.