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Picketty's theory is that there's something inherent to market economies that leads to capital's share of income increasing. The evidence suggests it's due to p
by aminok 10y ago
Picketty's theory is that there's something inherent to market economies that leads to capital's share of income increasing. The evidence suggests it's due to peculiarities related to how advanced economies treat property/land, that are orthogonal to their status as market economies, that are responsible for capital's growing share of income.
- ebalit 10y agoPiketty's theory is not that capital's share of income is increasing. I read this many time and I think it is a misconception of his work. His theory is that wealth grows faster than the economy, and that it creates wealth inequality. He has shown that it is not something new, that it is something stable throughout history. I'm not even sure that his theory is limited to market economies. At least, it's not limited to modern market economies.
- aminok 10y ago>Piketty's theory is not that capital's share of income is increasing. and >His theory is that wealth grows faster than the economy, and that it creates wealth inequality. This is the same thing.. Whether the 'income' is in capital gains or in dividends, if wealth grows faster than the economy, it means that capital's share of earnings is increasing.