Growth Economy is Unsustainable

December 24, 2007

We need to get our economy out of the belief that fast growth is the only thing worth having.

WallStreet doesn’t like companies that just turn a reliable profit.  If they are not growing then they are not worth having.  Look at Microsoft as a primary example.  It is not enough that quarter after quarter they post big profits and give their shareholders dividends.  They are seen as not being sexy the the stock price suffers.

To be sustainable we need to realize that we don’t need growth for profit.  The main reason is because traders like to flip stocks not just buy into a company and enjoy the dividends.  Many companies don’t even pay out dividends which I always thought was strange.  Their entire stock price is hinged on the idea of growth and that the stock will be worth more tomorrow than today.

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One Response to “Growth Economy is Unsustainable”

  1. misterpost said

    I often hear the same kind of attitude about population– that if we don’t have population growth, that’s a bad thing.
    Why? The most solid reason I can think of is the Social Security system assumes there will be lots of young people to pay for all the old.
    I can think of a couple of countries, no Continents that really would be better off with zero population growth for the forseeable future than what they’re getting.

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