Shareholders definitely add to the problem, but one of the inherent flaws in capitalism is that there is a natural growth imperative.
From a macroeconomic perspective governments and economies require growth to insure political stability for consumers and producers. There’s also a need to recoup the amount of currency that banks take out of circulation.
From a microeconomic perspective the growth imperative is driven by the inherent mechanisms of competition and accumulation. Basically, the only way to stay in competition is to increase the investment into a company’s future profits.
Shareholders definitely add to the problem, but one of the inherent flaws in capitalism is that there is a natural growth imperative.
From a macroeconomic perspective governments and economies require growth to insure political stability for consumers and producers. There’s also a need to recoup the amount of currency that banks take out of circulation.
From a microeconomic perspective the growth imperative is driven by the inherent mechanisms of competition and accumulation. Basically, the only way to stay in competition is to increase the investment into a company’s future profits.