Dmitry Grechkin asks a pertinent question in this thought-proving post.
Are investors and savers doomed?
Imagine this: if Alexander the Great had invested just 1 kg of gold at a 2.5% annually, today he’d own 3x the mass of planet Earth in gold!!
Clearly, that’s impossible—so what can we conclude?
Does this suggest that savings and investments must eventually be “burned off” by mechanisms like inflation, taxation, wars, financial crises, or revolutions? Is it a sign that investing and saving are inherently flawed over long term?
Or does it simply reveal that our economic models, while powerful in the short term, break down over time when they collide with physical and societal limits? WDYT?
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