Where you are wrong: You don't consider hoarding and savings as an investment too.
Savings can be investments or not. But if you save by hoarding, that's not an investment.
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Since 1802, the stock market has returned $600,000 after inflation for every dollar invested.
209 years to multiply your investment for 600,000 ?
Let's find the approximate interest..
1.0658 ^ 209 = 608449.62
So it's approximately a 6.58% interest rate. Are dividends that high? The stock market is probably a bubble.
The average 'saver' is not investing in the stock market, he is selling his fiat and hoarding stock. He is trying to retain value for his retirement against a devaluing currency but contributing very little to innovation through his purchase.