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It should be noted that Piketty walked back a lot of his thesis surrounding the rate of return on capital (r) being greater than the rate of economic growth (g)
by JMTQp8lwXL 6y ago
It should be noted that Piketty walked back a lot of his thesis surrounding the rate of return on capital (r) being greater than the rate of economic growth (g). Or, to be more terse, r > g.
As a framework, it's stretching its usefulness when applied to inequality in labor markets, and that would include bimodal compensation of developers.
https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Century https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Ce...
- mhh__ 6y agoI'm basically just a mathematically competent but economically dumb observer, so I can't weigh in myself, but there is generally a huge amount of debate over Piketty's work in the economics community. I've had the book recommended to me several times by "I'm happy to pay more taxes"-types as a one-stop shop for societal ills, but it's not that simple. The seeming lack of attention on land and other rentseeking also puzzles me.
- thewarrior 6y agoI don’t know about r > g but stock owners have made more money in the pandemic while actual people are starving. That’s evidence enough. The system is rigged to make house owners, stock owners etc richer as they have power. Wages don’t keep up with productivity.