[colinng]

The time value of money is always more than inflation. The classic simple example is that if you need food today, the money for food is worth much more today than it is worth a year from now.

Therefore to ask someone to surrender money today, they have to give you more money to return it to you next year.

This isn’t the same as growth (ie you’re doing a job, but next year they expect you to make 25% more sales, or else…)

[fra]

Why would anyone want to give you a return on capital if they are not able to use that capital to growth? The two are intimately linked.

[jahewson]

In theory they could use the capital to inflict a loss on all the other places an investor could park their money. Zero growth but still an incentive to invest!