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> suggestions about the ‘virtual stability’ of capital returns, and the policy implications advanced by Piketty (2014) are in consequence equally unsubstantiate
by perfunctory 6y ago
> suggestions about the ‘virtual stability’ of capital returns, and the policy implications advanced by Piketty (2014) are in consequence equally unsubstantiated by the historical record.
capital returns != interest rates
- snidane 6y ago> capital returns != interest rates What makes the difference? That one comes from stocks and the other from bonds and loans? Or the amount of risk associated with it? I don't think there is a difference for an investor who just picks whatever instrument yielding higher ROI, whether it is risky tech startups or risk free government bonds. Tech startups have higher return on capital with higher risk, government bonds have low yield but small risk. Risk adjusted those terms seem interchangeable to me.
- bildung 6y agoCapital returns is the superset (in the way it is used by Piketty). Capital returns include "profits, dividends, interest, rents and other income from capital" https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Century#Contents https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Ce...