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Joined 2 years ago
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Cake day: July 2nd, 2023

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  • There are many answers to this.

    First, this is not a general capitalism thing. It is more the specific flavor we have. Second, it is not an absolute rule, there are companies that don’t focus on growth, but it is rare amongst massive companies.

    The original idea of capital investment is that when you need investment for your company (e.g. to buy better machines, expand production, etc.) you let people invest (by buying shares) and then give them a portion of the profits gained from that investment (in the form of dividends).

    However, most companies have figured out that if they don’t pay dividends but re-invest the money, shareholders are still happy because their shares get more valuable as the company grows and they get to grow the company, which is good for CEO paychecks and lot of other things.

    There are things like economies of scale (if you produce million units of something per year, it is almost always cheaper per unit than if you produce ten per year). So if you don’t grow, your competitor that does grow could sell cheaper than you and put you out of business.

    And a lot more.







  • I would love to know as well, so I am slowly reading the UNCLOS treaty as I have time. We have no obligation towards US to not sink their ships, but we may have given promises to other parties of UNCLOS not to attack any ships, even those that did not sign.

    It’s like if your promise your wife you will be nice to your mother in law. You did not promise anything to your mother in law and she promised nothing to you, but you are still obligated to be nice to her unless your wife agrees to cancel the promise.

    So I don’t know if UNCLOS only deals with not sinking member ships or all ships.

    Also, touching US ships is historically very dumb thing to do.