How can the stock market grow faster than GDP in the long run?

You kids just don't get it do you? You can't wrap your head around what the stock market actually is. I'm going to spell it out for you. Historical US returns going back to 1921 have been 9.5% annualized per year. Subtract 3% for inflation. Real returns therefore have been 6.5%. You understand that corporations make profit? Right? After CEOs and employees are paid. After rent and utilities are paid. And after taxes are paid, 6.5% is what is left to pass on to shareholders. That is passed on via dividends and capital appreciation of stocks. And so yes, for that reason (minus any major systemic issue), the stock market can keep going up forever. Because corporations will ideally keep making profits forever.

/r/Bogleheads Thread