4 ms·

I wish this were actually about housing rents, since that behaviour certainly warrants a discussion over government regulation.

nostromo 11y ago
Here's a recent paper that did take on that issue: http://www.mit.edu/~mrognlie/piketty_diminishing_returns.pdf http://www.mit.edu/~mrognlie/piketty_diminishing_returns.pdf > Recent trends in both capital wealth and income are driven almost entirely by housing, with underlying mechanisms quite different from those emphasized in Capital. If the paper reads too academic, here's an accessible write-up: https://medium.com/the-ferenstein-wire/a-26-year-old-mit-graduate-is-turning-heads-over-his-theory-that-income-inequality-is-actually-2a3b423e0c https://medium.com/the-ferenstein-wire/a-26-year-old-mit-gra...
- MilnerRoute 11y ago
  The paper defines "rents" differently than its common meaning (e.g. the monthly payment for an apartment). "this upward redistribution comes from the growth of rents in the economy in four major areas: patent and copyright protection, the financial sector, the pay of CEOs and other top executives, and protectionist measures that have boosted the pay of doctors and other highly educated professionals." The Medium blogger seems to only be talking about housing.
  - Mikeb85 11y ago
    It's defined as 'economic rent', of which housing rent is a type. "In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents)." https://en.wikipedia.org/wiki/Economic_rent https://en.wikipedia.org/wiki/Economic_rent
    - ArkyBeagle 11y ago
      Rack rent ( the sort you pay your landlord) is distinct from (Ricardian) land rents. FTA:"The argument on rents is important because, if correct, it means that there is nothing intrinsic to capitalism that led to this rapid rise in inequality, as for example argued by Thomas Piketty." I find Baker mostly moderate and nicely curmudgeonly.

nostromo 11y ago

Here's a recent paper that did take on that issue: http://www.mit.edu/~mrognlie/piketty_diminishing_returns.pdf http://www.mit.edu/~mrognlie/piketty_diminishing_returns.pdf > Recent trends in both capital wealth and income are driven almost entirely by housing, with underlying mechanisms quite different from those emphasized in Capital. If the paper reads too academic, here's an accessible write-up: https://medium.com/the-ferenstein-wire/a-26-year-old-mit-graduate-is-turning-heads-over-his-theory-that-income-inequality-is-actually-2a3b423e0c https://medium.com/the-ferenstein-wire/a-26-year-old-mit-gra...

MilnerRoute 11y ago
The paper defines "rents" differently than its common meaning (e.g. the monthly payment for an apartment). "this upward redistribution comes from the growth of rents in the economy in four major areas: patent and copyright protection, the financial sector, the pay of CEOs and other top executives, and protectionist measures that have boosted the pay of doctors and other highly educated professionals." The Medium blogger seems to only be talking about housing.
- Mikeb85 11y ago
  It's defined as 'economic rent', of which housing rent is a type. "In classical economics, economic rent is any payment made (including imputed value) or benefit received for non-produced inputs such as location (land) and for assets formed by creating official privilege over natural opportunities (e.g., patents)." https://en.wikipedia.org/wiki/Economic_rent https://en.wikipedia.org/wiki/Economic_rent
  - ArkyBeagle 11y ago
    Rack rent ( the sort you pay your landlord) is distinct from (Ricardian) land rents. FTA:"The argument on rents is important because, if correct, it means that there is nothing intrinsic to capitalism that led to this rapid rise in inequality, as for example argued by Thomas Piketty." I find Baker mostly moderate and nicely curmudgeonly.