This is a real Reddit post: returns on investments are an unnecessary cost to society

It just hasn’t been done right and will surely work in America.

Someone needs to go back to ECON 101 and have it taught by a special education teacher

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he state does not "need" a return on its endeavors. As long as it doesn't spend more than it takes in in tax funds

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guess what happens when the state ALWAYS spends more than it takes

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What this means is that a state-provided service can price its service lower than a capitalist mode of production, because that extra investor cost is not present.

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Its like this person is literally blind and deaf. There is no single government entity with a private analogue that runs better than the private analogue.

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What this means is that a state-provided service can price its service lower than a capitalist mode of production, because that extra investor cost is not present.

An example of this is healthcare.

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Micheal Moore says Cuba is a great example. Communist state of the art.

sad part is the redditors will totally believe his BS.

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Capitalism imposes an extra cost on the economy: the cost of the need for investors to get a return on their investment

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Well this person decided to out themselves as ignorant right out of the gates

He forgot to include the fact that the state doesn't actually have to provide a good service in order to get your dollar.

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the state does not "need" a return on its endeavors. As long as it doesn't spend more than it takes in in tax funds or service fees, it will exist.

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Then why are we running a deficit in the trillions of dollars???

I believe there is an element if truth to that. There is a certain 90 day mindset with some powerful investors. They want events that will reflect to their bottom line and then they sell out and are gone. Had it in a prior company. An investment group bought a significant position...forced the company to divest of significant steady assets....took the short term profits and was gone. The company was built on a highly fluctuating component and a steady component. The speculative side lasted a few years and was eventually bought out in a down cycle

It was a good move for a few peoples accounts but ultimately ruined the company

I salute michael dell and co for buying his company back and getting it out of that 90 day earnings call mindset by investors

Is this every fund/investor...no but there is overall damage done by the ones that operate by that mentality

Capitalism isnt 100% with out fault...it just happens to be WAY better than it's next practical rival