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by lotsofpulp
902 days ago
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I am not seeing the connection to the Dutch Disease as described in Wikipedia: https://en.wikipedia.org/wiki/Dutch_disease My point was businesses compete with each other, and money is one of the tools used to compete. And growth rate and profit margins are not the same. |
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If you only ever reward investments with high rates of return it leads to atrophy in boring yet essential sectors of the market. Supermarkets, like you mentioned, have a very low profit margin (usually 1-3%). Can you imagine what would happen if no one was willing to invest in a supermarket?