I get that this is nominally how capitalism is supposed to work, but I think that putting the investor as the first, last, and only consideration has caused a proliferation of slash-and-burn style short-termism. It’s fake growth because it’s not actually sustainable, everyone knows it, but you just try and keep it up until the next short term scheme can keep your stonks inflated.

It’s very true. When the owner-class still dominated decision-making, there was a level of rationality in firm behavior - as there were owners who felt that the firm was their property, they were motivated to keep it healthy. Shear the sheep. From the viewpoint of the owner, this is rational - there is no sense in destroying what makes you money in the long term.

But investors have no such urge, and as the investor-class has come to dominate decision-making and not just capital allocation, they’ve begun slaughtering the sheep to gorge themselves and move onto the next. This, from their viewpoint, is perfectly rational decision-making - they are maximizing their gain from each investment, wringing it dry, and then leaving what’s left (preferably before the stock crashes) to find a new, healthy host. I mean, investment. They have no incentive to maintain the health of the firm, not even in an exploitative sense. What is it that Marx calls them? Rentier capitalists?

It’s not sustainable. Not even by capitalism’s admittedly low standards.