For example, let's imagine a company that sells toasters. At some point they're going to reach peak market saturation where everyone in the world has a toaster. Now during this process right when growth in it's peak we see an almost ethereal phenomenon that capitalism delivers. We see the most optimized form of an idea materialize which everyone can benefit from and gain wealth. Wealth in this case would be owning a toaster in it's most optimal form according to the laws of physics and current engineering processes.

The problem is that once this epoch takes place the projected exponential growth for the business just vanishes. Instead we see gradual decline until the new market cap (replacing broken toasters etc.) is reached and an thus an equilibrium in the market is reached. During this process we see the nasty side of capitalism as the toaster company fights tooth and nail to prevent this inevitable conclusion. We see monopolization, deliberate weakening of the integrity of the product to increase time to EOL (which wreaks havoc on the environment), absurd patenting and copyrighting, digital rights management, lobbying and bailouts. This not only hurts the customer, but the economy as a whole as our political system is set up to encourage this type of behavior.

Now, one of the main themes I'm seeing in this discussion is the problem of demand. It seems like a lot of "things" that our economy has relied on consumers purchasing has hit this market saturation point and is being limited by technological advancement.

I think that we are at a point where we need to change our financial structure to one that helps create demand. With the minimum federal wage remaining relatively stagnant for the past few decades along with more and more low level jobs being replaced by automation people simply don't have the money to buy things let alone make investments. The only real solution I see is a push for a universal minimal income. But then again, what do I know? Like I said, I'm not an economist..

In most existing monetary regimes, money is not wealth, but debt.

>You need perpetual growth because all math models used in financial industry are based on perpetual exponential growth - imagine insurance companies, profitability, attractiveness of financial services, hedging etc. is based on the assumption the amount of debt (money) increases in time.