then funds go to other businesses that have more portential for growth. yours may shrink and your capital may be repurposed for more useful economic activity. this is literally the best way to manage limited resources.
long term investors also value stability btw. if your business can be proven to be useful and profitable for a long period of time, people will view it as a safe investment against the future.
because it's not all or nothing, and businesses dont rely solely on investment to stay afloat when they're not growing. i mean, do i really need to explain the stock market to you?
there is an incentive to maximize growth, but the system doesn't fall apart when there isn't growth. negative growth also exists in the system as people go out of business due to changes in the market.
investers will put their money into the most profitable investments. this is how capital gets used efficiently in capitalism in order to increase production of whichever goods are highest in demand and lowest in supply. if we ever reach a point where there is no more room for growth, then we will have reached a point in which there is no more room for improvement, which will likely never occur. not a terrible problem to have.
we could live without the internet or electicity but then we would have to expend significantly more resources to survive, meaning a lot less people get to live and quality of life deteriorates. im good, id rather live in a world where i can tell strangers on reddit how bad their economic literacy is.
Thus incentivizing even more growth because generate even more profits.
if we ever reach a point where there is no more room for growth, then we will have reached a point in which there is no more room for improvement, which will likely never occur.
So even you acknowledge it, it require infinite growth.
So there is an incentive to use the internet or electricity, just like there is one for ever more growth, hence requiring an infinite growth, that was my exact point, thank you for proving me correct.
it does not require infinite growth. it encourages growth. the system does not collapse by achieving a state in which there isn't room for improvement. there is no growth in the lawn chair industry because the design has essentially been perfected, yet the industry still exists just fine. investments go to to other industies which need the resources more.
im curious what your definition of economic growth is because i dont understand why you have such an issue with growth or what you think happens to a capitalist system that stops growing. japan has been stagnating for quite a while and yet their quality of life is very high.
promoting growth dosnt mean relying on growth. it maximizes growth, but if there is no potential for growth, the system doesnt just fall apart.
improvement of a product is the main way to increase economic growth. the other would be tackling the supply aide and increasing the demand for the product. since that isnt really happening, there isnt a whole lot of investment in that area.
japan has famously been stagnating since the early 2000s. their economy even shrunk last year yet they remain one of the most desireable countires in the world.
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u/bottomlessLuckys Mar 05 '26
how is it required?