Explain Like I'm 5 (ELI5)

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ELI5 why is perpetual growth "inherent" to capitalism? Is it? (lemmy.world)

submitted 13 hours ago* (last edited 13 hours ago) by ivanafterall@lemmy.world to c/eli5@lemmy.world

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Why can't I, in theory, start a business, grow it until it's successful, then just...be content and stop growing? Why do people talk about it as inherent to the system to grow like cancer? What about capitalism causes that and why can't we avoid it? Like, technically speaking?

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[–] Wrufieotnak@feddit.org 3 points 11 hours ago

Honestly, I'm not sure myself.

In principle it was that way at certain points of time in our history, as private people were owners of the means of production but there was no stock market to invest in. But as bubbles in the market show again and again, its not rational behaviour.

And capitalism should in principle work without the stock market, but the big question is still: how do you control those elements that are too greedy for the system to sustain. Some socialist elements like wealth tax are still needed. Because even without the stock market: if you are rich, you can invest more money into your own business and grow it. Slower than if you could get investment from outside sources, but still you will grow faster and stronger than somebody without your money in the beginning. Meaning the wealth of the society will still get funneled into the hands of the rich elite.