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Your point b is something I have always believed... Club of Rome and all that... It's about time it became fashionable.
Indeed, it seems intuitively obvious that high rates of return on capital are only possible in a growing economy. So the risk-averse capital is not, in the aggregate, going to get a good rate of return. In the long term, perhaps investors will adjust their expectations to moderate, sustainable returns. In the meantime, with a huge amount of productive capacity idle, we've got a capital strike on our hands.
Government intervention seems the only rational possibility. But that would require rational government. It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
it seems intuitively obvious that high rates of return on capital are only possible in a growing economy
Which leads us to consider the prodigious rise of the financial sector. Which compensates for lack of growth by whipping up high rates of return based on the capture of future flows.
No growth now? Mine the future!
Where now for capital? To the moooon? It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
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