"if somebody owes you a million dollars, they've got a problem. if somebody owes you a billion dollars, then you've got a problem."
I could be totally wrong, I'm not an economist -- but I think you encounter problems when you want to earn, let's say, 10% on $80 billion. To give an extreme example:
If you give me $1 and want a 100% return on your money, then hell yes I can double your money in a day and give you back $2. If you give me $1 million then I'm going to have trouble earning you much more than whatever a savings account offers, like 2%, because I don't have a way to put that much money to work.
Money doesn't magically grow, you give capital to somebody who's going to do something with it like pay some workers to produce a widget and sell them, making more money than they spent building widgets. When retail investors put money in a bank or in the stock market and it grows, it seems like it's just an automatic outcome. But somebody on the other end, after the money changes hands hundreds of thousands of times, has to be able to put that money to work.
Where are corporations collectively just going to dump trillions of dollars and expect it to magically grow?
"if somebody owes you a million dollars, they've got a problem. if somebody owes you a billion dollars, then you've got a problem."
I could be totally wrong, I'm not an economist -- but I think you encounter problems when you want to earn, let's say, 10% on $80 billion. To give an extreme example:
If you give me $1 and want a 100% return on your money, then hell yes I can double your money in a day and give you back $2. If you give me $1 million then I'm going to have trouble earning you much more than whatever a savings account offers, like 2%, because I don't have a way to put that much money to work.
Money doesn't magically grow, you give capital to somebody who's going to do something with it like pay some workers to produce a widget and sell them, making more money than they spent building widgets. When retail investors put money in a bank or in the stock market and it grows, it seems like it's just an automatic outcome. But somebody on the other end, after the money changes hands hundreds of thousands of times, has to be able to put that money to work.
Where are corporations collectively just going to dump trillions of dollars and expect it to magically grow?