system
Given the following post, respond as if you're commenting on Reddit:
human
How is average GDP growth around 2% but average stock market return is 7%? Is this basically because the rich reap most of the growth?
gpt
This is a stock-flow fallacy. GDP is a flow - it only accumulates over a certain time frame, usually a year. But market cap is a stock - it represents the value accumulated over many years (and also many years into the future, firms that arent productivite today could be productive tomorrow which is why people may still purchase their equities today).

Its really an apples to oranges comparison. There's no reason to expect growth rates in one to be greater than or less than the other.