3 ms·
As proposed by Thomas Piketty in Capital in the 21st Century, when "r > g" (where r = return on capital and g = rate of economic growth) the rich (those with c
by spiralpolitik 11y ago
As proposed by Thomas Piketty in Capital in the 21st Century, when "r > g" (where r = return on capital and g = rate of economic growth) the rich (those with capital) get richer.
Apart from between 1930 and 1975 (which Piketty suggests were unique circumstances due to WW2) r has generally been greater than g.
- hglman 11y agoThere was an article on the projected growth of the middle class in china. If that was to hold, it would support the point. If everyone gets some linear growth to their income, those at the bottom get the most %. So the pie shifts down. If its about leveraging existing capital, then more capital means more for you and the pie shifts up.