/biz/ - Business & Finance

[Anonymous No.12911452]

Why does the economy always need to grow? Why is it so important that Starbucks have 35,000 locations instead of 30,000? Why is "growth" the measure we use to determine if an economy is healthy or not?

[Anonymous No.12911460]

We need communism NAO

I’m an anti capitalist thanks to this thread

[Anonymous No.12911469]

>>12911452
Because of it stagnates people realize they dont actually need this shit

[Anonymous No.12911476]

sage and hide leftypol threads

[Anonymous No.12911496]

>>12911452

Because that's what an economy is. It's an abstract measure of productivity.

[Anonymous No.12911505]

>>12911496

It's only productivity if you're producing more products than you were last year?

[Anonymous No.12911515]

>>12911452
Becuase interest on borrowings

[Anonymous No.12911520]

>>12911452
It is the only way the Jew can continue to collect their magic interest.

[Anonymous No.12911525]

[Anonymous No.12911541]

Because the way it is set up results in it being unsustainable without perpetual growth.

[Anonymous No.12911544]

>>12911452

Because capitalism is a shitty, unsustainable system

[Anonymous No.12911546]

>>12911452
The economy is a closed system. Other than what the federal reserve prints, the amount of dollars in the system is stable. An economy works when these dollars move around. Dollars only move when times are good, because it means people aren't afraid to spend them. When times are bad and people are scared, they hoard their money. This is why, if you remember 2008, everyone kept saying that spending is important. When people aren't spending, everything stagnates.
Economic output in the term of "more" shows that money is circulating. Companies such as Amazon aren't hoarding hundreds of billions of dollars in off shore banks, they're reinvesting in their business. They're spending money, they money goes to the next person, it moves around, and the economy keeps going

[Anonymous No.12911553]

>>12911452
the economics of the coming spaceship earth by kenneth boulding is a great essay which examines this. measures based on throughput and consumption must go. until some sort of circular economy is made possible by technology, treating the economy as an open system with limitless growth potential is childishly naive -- it's quite literally the logic of a cancer cell

[Anonymous No.12911565]

We must constantly feed our growing jew masters. Get back to work goy!

[Anonymous No.12911574]

>>12911452
Because if we started measuring it in something like median wealth, people would realize who fucked they are.
(((They))) surely wouldn't want that. :^)

[Anonymous No.12911611]

>>12911546
lmao the absolute brainlets populating this board. the economy is in no way a closed system. money is an abstracted form of wealth and is used as the basis for economic measure and exchange, it is not the basis of the economy, as evidenced by historical markets which far predate the concept of traditional currency. we measure our economy in terms of growth and throughput, which implies increased consumption. earth is both the source and the limit to this growth.

[Anonymous No.12911646]

>>12911525
Fucking damned memes
Pajeets will be seriously the most populous country in the world beginning 2020

[Anonymous No.12911652]

>>12911515
Fundamentally: this.

All money issued, is repayable with interest. Now if 100 are issued and 110 are repayable - where do the additional 10 come from? Growth and further issuing of money is the answer.

Public debt is measured in relation to GDP. How can you run a country with a constant budgetary deficit without encountering a runaway debt spiral? The GDP must constantly grow.

[Anonymous No.12911663]

>>12911611
Thank you Rabbi Shekelbergbaumstein.

[Anonymous No.12911664]

>>12911452

Because the entire world economy is a giant pyramid scheme, Also human greed, with the 1% being greedy for wanting more capital and the normies being greedy for wanting cheap Starbucks coffee and new iPhones.

[Anonymous No.12911701]

>>12911452
The accumulated debt has to be paid or the banks collapse. If people default on the debt then the banks suffer loses. If people worry their Bank doesn't have enough money there's a bank run. The banks only have fraction of what they should so a bank run trashes the bank and leaves many account holders screwed. And so on and so forth. Basically the financial system is inherently unstable. We should go to a full reserve non debt backed system that can contract without triggering cataclysm.

[Anonymous No.12911719]

>>12911452
Jews

[Anonymous No.12911741]

>>12911452
Interest.

[Anonymous No.12911788]

>>12911701
>>12911719
We're fucked. They've pulled all stops to keep us growing this period. Stupid levels of immigration, lenders giving money away without proper background information, corporations borrowing money to buy their own stocks, the constant push for consumers to keep borrowing, student loans etc etc. There may not be much more they can do to keep this bubble going but god knows what else can be done that can push this further. Signs are saying that current measures are starting to run out of steam and the economy is stagnating. Growing number of people are slowly realizing that blatant consumerism isn't giving them the same level of happiness that it once did.

[Anonymous No.12911832]

>>12911452
because population grows, if you're not producing more products than you were last year then there is a problem

[Anonymous No.12911861]

>>12911452
There are many companies that have sustained themselves without ever expanding.

If you look at large companies, there are many who got there by taking bold risks to expand, who simply won't stop at some arbitrary point when you have shareholders and employees expecting growth that's possible.

On the other hand you have some company like Ebay which has done nothing but sit on it's monopoly.

Ultimately though, economic growth in terms of GDP is driven by nothing other than government debt. If governments do not have an ever increasing revenue then they will be unable to control increasing interest rates on public debt and the debt itself, akin to needing an ever expanding cork for an ever expanding hole.

Of course though, there is always new markets to expand into, with individuals who can make money from doing so. If Uber can take a chunk of the Indian taxi market, then some go-getter Uber employees will go for it.

[Anonymous No.12911885]

>>12911452
How else could you know what's a good use of money?

[Anonymous No.12911952]

>>12911452
Everyone is this thread is retarded. Bearish as fuck

[Anonymous No.12911956]

>>12911788
No.
Debt can grow infinitely as long as psychologically we dont allow it to be a problem.
Right now that's tough because guys like Dalio are sounding alarm bells.
The proof of this is that we are now so fucking levered up, that any mention of interest rates causes 10% of all money markets to pull out.

This all being said, the reason things like Gold and Silver are all time lows (inflation adjusted) is because slowly we are eroding the fundamental principle of economics, which is that all markets rely on scarcity to be price-deterministic. Scarcity today is a function of demand more than a function of supply.
So we can actually artificially lower supply while hiking prices because the system doesn't rely on any real assets. Fiat currency has allowed tremendous growth, but don't get caught without a chair when the music stops, if it does.
Everything will change if we see debt for what it is.

[Anonymous No.12912016]

>>12911452
>Why does the economy always need to grow?
But it doesn't.

[Anonymous No.12912061]

>>12911788
>corporations borrowing money to buy their own stocks
This sounds insane that they can do this.

[Anonymous No.12912074]

>>12911452
Because America has setup a pyramid scheme, where younger people pay for older people. They require at least 4 to 5 times more younger people to pay for older people's services. If the economy stagnates old people don't have the young support. That's why they need to import as much immigrants as possible.

[Anonymous No.12912096]

>>12911956
This

[Anonymous No.12912270]

>>12911460
i was that even before

[Anonymous No.12912299]

>>12911505
Female post question mark?

[Anonymous No.12912300]

>>12911452
Because of social redistribution.

In order for those SS and Medicare/caid payments your dad and grandad rely on to keep going out, more money needs to be paid into the system every year.

Problem being that white people have stopped having kids because it's too damn expensive, and brown/black people tend to be tax negatives not positives. So we're leaning on our economy and growth/innovation.

When inevitably the cost of keeping these programs alive starts growing faster than those, we get collapse.

[Anonymous No.12912612]

The economy is a huge Ponzi scheme incase you haven't realized it yet.

[Anonymous No.12912685]

>>12911525
There's going to be another war within the next two or three centuries, I can feel it. There's too many of us on this rock, and we're too stuck in our old ways to try to get up into the stars. Too many chickens cooped up in their coops, diseases both mental and physical will spread like wildfire until we're at each other's throats for the last drippings of food, water and living space. Then the weak will die and the strong will also die, because neither of those words mean anything any more when there's nothing left for anyone.
What's coming is inevitable.

[Anonymous No.12912696]

>>12911452
because it's literally a ponzi scheme. and i double dog dare any capitalist to reply to this fucking post and prove its not with actual concrete facts.