I am not arguing against investing and its usefulness to catalyze the creation of value, I am arguing that investments don't magically create value but only the work they support or enable.
But if I go a step further I would also argue that investments as we know them are not sustainable. There is a risk that an investment fails and therefore interests are chosen such that they yield a profit at least in the long run and this also doubles as incentive to invest in the first place.
I now argue that this setup will run away. Having money to invest now allows to gain more money and then even more money by reinvesting again and again. But because investing is a non-productive activity not creating value the returns must be paid by taking an ever increasing share of the value produced by the workers.
The problem is that the value produced by work at best increases linearly with time (assuming a constant workforce) while the returns from investments increases exponentially. And no matter how close to zero the gains of an investment are, sooner or later it will blow up.
> I am arguing that investments don't magically create value but only the work they support or enable.
Well, that's true in a sense, but discovering new information is valuable. I'm just saying that figuring out which work to support or enable is itself valuable.
I agree, though, that the U.S. undervalues making actual stuff with long term benefits. Ask kids what they want to be when they grow up. How many list jobs in manufacturing, inventing, research, mining, engineering, energy, etc.? Mostly they pick fine careers, but mainly service-heavy careers with low multipliers: teachers, fire fighters, police officers, athletes, entertainers, doctors, etc.
But if I go a step further I would also argue that investments as we know them are not sustainable. There is a risk that an investment fails and therefore interests are chosen such that they yield a profit at least in the long run and this also doubles as incentive to invest in the first place.
I now argue that this setup will run away. Having money to invest now allows to gain more money and then even more money by reinvesting again and again. But because investing is a non-productive activity not creating value the returns must be paid by taking an ever increasing share of the value produced by the workers.
The problem is that the value produced by work at best increases linearly with time (assuming a constant workforce) while the returns from investments increases exponentially. And no matter how close to zero the gains of an investment are, sooner or later it will blow up.