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Why is everything going to shit?
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this post was submitted on 14 Aug 2023
401 points (95.5% liked)
Asklemmy
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Thanks! I guess, I posed this question badly as most of the other folks came here to philosophize or rant.
If you're doing those moonshots and a company isn't profitable, does that mean you don't get paid out in the meantime? You just keep your money in there, because the company's valuation rises, which makes your x% company ownership worth more, right?
Right, and with inflation, we just need to slow it, i.e. stretch it over a longer period of time, because we have automatic processes in place to adjust for a certain rate of inflation over a fixed period of time (like for example work contracts that include an automatic pay raise every year).
Not really, that's just how this place is.
Well, part of posing it badly was to post it to AskLemmy, because yeah, this is more just an opinion community. I probably should've gone to some finance-related community, but couldn't think of one, off the top of my head...
Usually, yup. Investment deal structure varies but generally that's the case. You can sometimes borrow money to buy out an original investor, which is what I think what part of your earlier explanation bit meant.
Basically, yeah. We kind of just accept there will be some degree of inflation... I don't recall any arguments as to why zero inflation would be bad but I think inflation's existenxe is just a fact of economic life. So we want to spread it out in an orderly fashion so those processes you correctly listed can quietly do their thing.