From: gts (gts@optexinc.com)
Date: Thu Sep 12 2002 - 08:24:05 MDT
Lee Daniel Crocker wrote:
> If it isn't earning through growth, then it has no choice but
> to issue dividends. Growth just won't work forever.
But growth does work forever.
Despite occasional recessions and depressions, the world economy
continues to expand. The largest and most mature corporations in the
world grow with the world economy. There is no reason to believe they
will stop growing. Corporate earnings increase each year on average,
including those of the most mature corporations. Their stock prices
increase accordingly, allowing investors to cash in on the growth of the
economy.
If you did not personally invent the notion that "growth won't work
forever" then I would guess you learned it from some marxist-leaning
anti-free-market professor of economics. There is no shortage of
ultra-liberals in academia.
-gts
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