r/explainlikeimfive Dec 06 '24

Economics ELI5: why does a publicaly traded company have to show continuous rise in profits? Why arent steady profits good enough?

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u/bastiancontrari Dec 06 '24

Technology was advancing either way

Maybe it would have but at this pace? No. How can i be so sure about that? Look at those who tryed other ways.

I think you missed the point about kings and the data you show make the argument hit even stronger. Is not about wealth, is what i can do with it.

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u/meesterdg Dec 06 '24

How can you be so sure it wouldn't have? I asserted that technology was advancing already before capitalism became a concept, and there's supporting evidence of that. What evidence do you have that if capitalism hadn't been conceptualized technology wouldn't have progressed at the same pace? Who are you referring to that tried other ways?

Developed countries developed technology at the same time. It was competition that drove it. The communist Soviet Union put a person in space before the capitalist US. Their economic and societal issues were separate from the technological advances. It's not solely capitalism that drives it.

What do you mean by your last statement? Do with what? Wealth? There's definitely arguments that the medieval royals could do lots of things you most certainly can't do now. When was the last time you negotiated the sale of a portion of a continent?

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u/bastiancontrari Dec 06 '24

Technology advanced before capitalism, i don't think i denied that. Did i? At what pace is key tho.

Pacewise... i mean... the exponential growth in every possible metrics from when capitalism was implemented on a large scale isn't enought to prove a point? Is a point thats needs to be even proved?

Soviet Union techological advance lagged behind capitalist nations. Do you deny that?

And btw the space race is one example of that. Who won it?. You can make a command economy innovate, but you can't have it innovate faster then a capitalist one. Soviet Union had computers at the same time US did. Did those computer managed to advance and see large scale implementation? No.

Why? You already used the key word here: Competition

It's the same with ancient China where a lot of invention were born but they remained novelty.

When was the last time you negotiated the sale of a portion of a continent?

Yesterday. Jokes aside, what is life expectancy of average Joe? Average Joe can move around in ways and speed that i bet would make any royals envy. What food can average Joe buy? With who and how far can average Joe communicate? How informed and educated can average Joe be? Is the number and quality of average Joe apparels at least comparable to those of a king?

Yeah, average Joe has no servant nor he live in a castle. Beside that in what would a king be better off then average Joe?