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No one who understands what capitalism and free markets are about would suggest that they focus on the idea that one should sacrifice everything for more growth
by Bsharp 13y ago
No one who understands what capitalism and free markets are about would suggest that they focus on the idea that one should sacrifice everything for more growth. The idea of growth as it's being talked about in the article - in the macro sense - is of no concern to capitalists because it's individualistic.
Imagine you're in high school and you want to get A's: do you want A's because you want to school to look good and improve, or to boost your transcript and have more opportunity? If you are fine with C's or F's then that's fine too - it's whatever each person wants to do (obvious caveat about natural ability, access, etc. whatever it's an imperfect analogy).
Similarly, no capitalist is greatly concerned about economics at the macro level, because they're simply focused on their own success, however they define it. This macro-level growth obsession is an invention of the government's attempt to control the economy by influencing certain metrics. This is where crony-capitalism comes in, since they are obviously incented to influence how the government manipulates the economy, but that is not a fault of capitalism but rather government intervention into markets and the subsequent incentives it creates. People often mistake that for capitalism when it's not.
- smacktoward 13y ago> Similarly, no capitalist is greatly concerned about economics at the macro level, because they're simply focused on their own success, however they define it. And if they run a company whose equity is traded in the public markets, they quickly discover that those markets define success as... growth.
- Bsharp 13y agoObviously...what's your point? Of course they're concerned with the growth of their own company. They don't care if other markets are shrinking though. That's why I specified macro level.
- smacktoward 13y agoMy point was that there's no need to assume any kind of "macro-level" direction at all. If the logic of the system drives individual "micro-level" actors inevitably toward growth, you'll get a macro-level orientation toward growth just from the aggregation of all those individual decisions.
- Bsharp 13y agoExcept growth doesn't just happen at the will of a company. Companies grow because people buy their products and use their services, which means they wouldn't grow unless people wanted them to. So how is growth a bad thing when it's what people want?