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> One I could think of is that rather than investing in human labor (e.g. education), it would make more sense to invest in capital (e.g. stock market) since t
by Mikeb85 10y ago
> One I could think of is that rather than investing in human labor (e.g. education), it would make more sense to invest in capital (e.g. stock market) since that would yield you higher returns
Keep in mind that, in economics, capital includes machinery - anything that can be owned and generate passive income. So robots, computers, machines - all fall under capital. Anyone that lives in today's world can clearly see that labour is being replaced by machines. So capital's share of income absolutely (r) is growing faster than labour's share of income, represented by (g).