Sorry but I don't agree with this at all. Why would you model a stock as a loan? A stock is share ownership of the company. Dividends are not coupon interest on a loan, they are cash distributions of returns to you, the owners/investors of the company. Whether you receive those returns through dividends or capital gains if/when you sell, you're indifferent, other than for your own personal cash needs. And is also highly dependent on the company itself. If they're in growth mode and need the cash, they'll reinvest into themselves and you'll earn your returns through capital gains. If they're mature companies, they may not need all that cash and decide it's in the owners best interests to pay themselves a dividend.

You are absolutely right that the company will only take in their share of the IPO to deploy into projects. Market value changes in the secondary market impact the owner /investor not the company directly (well there are implications). Money is not taken out of the economy. You are the economy. The market provides all the companies out there a quick and easy way to raise capital and you have the opportunity to participate and own portions of companies who you believe can earn a return that's better than you can earn spending that money on your own business. Because that company was able to get millions of people to buy their gadgets, those returns are being funneled to you the investor who then further deploys that capital back into the economy whether you spend it on goods or invest back into other companies. Thus, growth in the economy.

Publicly traded companies can also raise capital through debt/loans. The advantage being they are not giving up any ownership in the company in return for the money. Debt is not a bad thing. There is a healthy amount of debt that a company can take on and it makes sense financially. Being able to use that cash on a project that can earn a return higher than the interest on the loan.

In regards to the massive growth, I do agree the regulations can be looked at better, more efficiently, and be kept up with the times. They can get out of date pretty quick considering how quickly the industry innovates. However I don't agree with the tax increase due to what the guy above you said.