Because we’ve seen the stock market, by and large, act in ways which are completely untethered from material reality.
Aggregates like the Dow Jones are a full 50% higher than they were when trump took office in 2016. It’s been five years! I see absolutely no metrics tied to exploitation of labor or whatever else that would explain a 50% rise in asset prices. Rather, profitability has long been falling for companies as a whole.
So the argument that “stocks are inherently speculative assets whose prices are simply determined by the amount of money that has nowhere else to go” (i.e., money which cannot find a more lucrative, actually exploitative investment like more factories or whatever) is far more convincing to me personally.
Because we’ve seen the stock market, by and large, act in ways which are completely untethered from material reality.
Aggregates like the Dow Jones are a full 50% higher than they were when trump took office in 2016. It’s been five years! I see absolutely no metrics tied to exploitation of labor or whatever else that would explain a 50% rise in asset prices. Rather, profitability has long been falling for companies as a whole.
So the argument that “stocks are inherently speculative assets whose prices are simply determined by the amount of money that has nowhere else to go” (i.e., money which cannot find a more lucrative, actually exploitative investment like more factories or whatever) is far more convincing to me personally.