Sorry to burst your bubble CB.First things first... you do not live in a capitalist society. Mr Greenspan made sure of that with the Greenspan PUT 3 decades ago. If we were in a true capitalist society we would allow weak companies to die, smaller innovative companies would thrive and most of all a capitalist society require healthy economic cycles with real downturns that promote innovations. These real cycles also teach numb-nuts to invest wisely and be wary of the pitfalls in the market. What you have at the moment is crony capitalism instead, were zombie companies are allowed to stumble on forever, laws passed to the benefit only certain companies and government subsidies to enrich the few... all for the greater good of trickle down economics to the benefit of the very few 1%. In a true capitalist society were the pie increases there will be fewer at the top because some would have lost fortunes through proper investment cycles.
"and and when functioning well will increase wealth and grow the size of the pie." The paragraph above already falsifies the premise of this statement... it is not functioning for at least the last 3 decades. Anyway, increase wealth part I agree... to the select few that know what they are doing, to the ones that have a good head on their shoulders, keep their fomo emotions in check. But absolutely the pie gets smaller or more or less the same. Please understand the nominality of your currency, the wealth destruction of inflation. Inflation (among other things) ensures the pie gets smaller. Over time your $$ might have increased in arbitrary number but your real purchasing power is diminished. That is true of assets like stocks priced in the currency over time. I'll give you a real world example...a litre of milk cost 19c in 1970. With all that mechanisation, mass production techniques, increases in efficiency and technology in our society since 1970... one would think that prices would be cheaper as companies compete against each other and get better at getting the milk to the consumer. How much is that litre of milk today?
Let's have the RBA give us some maths (hint in 1970 All Ords was around 512)... in 48 years the All Ords hardly kept up in accretion against inflation. That does not look like an increasing pie to me...
Source:
https://www.rba.gov.au/calculator/annualDecimal.htmlPlease do the maths or some real research before you make comments like above please. You are doing yourself and everyone an injustice propagating nonsense.
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