In What Way Are Investments Harmful?

This post assumes you have read Why Capitalism Requires Economic Growth, which explains among other things how the stock market requires economic growth. I assume as well that the reader requires no proof that perpetual growth in a finite world is impossible. (Possibly, the idea that all economic growth results in increased energy consumption should be mentioned.) Now, we come to the brief answer to the question in the title: If the venture capitalist or other investor makes money, we have economic growth, which is justified in the case of the poorer nations of the world provided that it is accompanied by equal or greater shrinkage in the rich countries; however, this is not accomplished by the growth of private fortunes. Otherwise, it exacerbates resource depletion, economic inequality, authoritarianism, and hastens collapse. If the investor loses money, the investor himself is the worse for it. When we are near collapse, it is most likely that the investor will lose. Of course, as in the game of Monopoly, which models today’s economic climate quite well, a talented player might end up with everything, which, as the final inequality, could precipitate a revolution, if earlier events haven’t anticipated it.