Stock markets have not always been around, and there were many advances in technology/civilization without them.
I agree, the wheel and fire being two examples. Investing in companies has been around for quite a long time, and the mass organization of these investments, the market, has been around for while too.
Lets not forget what the "market" really is.
Human ingenuity would persevere without them.
Yes, but I'm not going to go out of my way to provide anyone else with my fantastic inventions for nothing.
Lets say I invented Whodaddies, and they made your car get 4,000 miles to the gallon in gas. But there is no market, and no organized way to get people to invest in my company. I can't buy the machines to mass produce my invention, and I can't turn a profit on the Whodaddies without mass production. Looks like I'm going to work at my desk job tomorrow, being the only person in the world to get 4,000 mpg.
Think about it. Even if someone did invent something to make their life easier, they won't share it for nothing. The market & capitalism in general promote invention and advancement. Granted it is through greed, but whatever, it gets the job done.
Ryan A wrote:
The main problem I see with investing in stocks is that it makes money carry more weight in society because the stock market allows excess money to be multiplied and then multiplied some more. This leads to the validity of the phrase "money talks" which I think is the low point of human society. Excess money allows people to bypass having good, well though out ideas and just flaunt the franklins.
Did Russia, North Korea & Cuba have great philosophers? Because I don't believe they invented the airplane, car, telephone, computer, internet or compact disk. (I may be misinterpreting your statement about the lack of ideas that money causes, and if I am, please explain it to me, because as is, it makes little sense to me.)
The market also does not create money out of thin air. It doesn't just multiply you dollar by some arbitrary figure that creates a new value. You don't actually realize any gain in cash what-so-ever until you sell. You have realized and unrealized gains. The unreal gains come from the fluctuation of the stock prices, you get the realized (IE: taxable) gains from selling above what you paid.
The price of a stock is dependent upon the performance of the company to which the stock belongs. As a company does better, it grows, it hires more people, makes more orders for supplies, it helps the economy as a whole.
I always imagine the CEO/corporate types as Mr. Scrooges sitting behind desks, marveling at their own riches and ignoring all else. Same with the wall street type.
The CEO that "stops to smell the roses" will be fired right quick. You need to ABC 24/7 in this world. The CEO is like the quarterback, gets all the glory and takes all the blame. They get paid well yes, but deserve it based on how demanding their job is.
Often times, they create their own excitement and create a false demand, only so that they can unload their crappy investments to the little guy.
Change "often times" with "It has happened in the past, but one can go to prison for doing so" and I agree with what you are saying.
human institutions such as the economy and stock market and intangible other creations that literally have no "soul" doesn't give me much hope in the grand scheme of things.
You understand how the economy and market works right? It is not like there is a group of 6 dudes sitting behind a desk somewhere making all these numbers and index's up.
The market and economy is the culmination of the actions and reactions of almost everyone involved in the world.
I find it rather beautiful in it's chaotic unpredictability.