I always see people say it but Idk the origin

  • Owl [he/him]
    ·
    3 years ago
    1. Companies keep producing extracted surplus value and giving them to investors as dividends.

    2. Investors spend those dividends on more shares in companies, which increases their future dividends, in exponential growth. (Not all investors do this, but the rest don't have exponentially increasing portfolio sizes, so they become unimportant in the long run.)

    3. This requires that there's actually more value worth of shares in companies out there for investors to purchase. But the amount of money to invest grows exponentially, so there must be exponential growth of things to invest in.

    (Number 2 is like 20 years out of date though. Now the biggest companies skip the dividends and reinvest money in themselves for even more growth, trying to grow faster than a person buying more shares with dividends would be able to.)