This perspective is strongly endorsed by Pikkety's work, which shows that returns on capital outperform returns on labor. Further, there is a trend for higher l

This perspective is strongly endorsed by Pikkety's work, which shows that returns on capital outperform returns on labor. Further, there is a trend for higher levels of capital to not just produce proportionately higher returns, but also higher percentage returns. E.g. Harvard's endowment fund earns a higher percentage return than the smaller endowment funds of other universities. This disparity may be because higher amounts of capital allow owners to not only employ more skilled financial resources, but also to cherry-pick investments and negotiate superior returns to an extent that is not possible for owners with less capital. The disparity in returns on capital vs labor result in a concentration of capital in fewer hands (inequality) and this is linked to reduced overall productivity. Piketty proposes a tax on capital (not just on a capital gain, but on the balance) to reverse this. This is undermined by the fact that it is regarded as an impossibility (politically), kind of like proposing that we all just learn to levitate to do away with polluting aircraft.