4 ms·
Growth rates are central to wealth inequality: the r>g observation (due to Piketty, Capital in the 21st Century) is that both historically and recently the retu
by smallmancontrov 4mo ago
Growth rates are central to wealth inequality: the r>g observation (due to Piketty, Capital in the 21st Century) is that both historically and recently the returns to capital exceed the growth rate of the economy. Trusting someone whose fortune was built on "r" and is staked on "r" to do anything other than cheer-lead his own balance sheet would be nuts. Hear him out, but please hear what Piketty (& fiends) have to say as well.
- alvah 4mo ago> (& fiends) Freudian slip?
- smallmancontrov 4mo agoHa! Red suits them.
- kingofmen 4mo ago> the r>g observation (due to Piketty, Capital in the 21st Century) is that both historically and recently the returns to capital exceed the growth rate of the economy. They do if you cherry-pick your economies, starting points, definitions of "capital" and "growth", and cutoff points, yes.
- smallmancontrov 4mo agoYou have to cherry-pick a lot harder to make r>g go away. Plotting it vs time makes this clear because you can clearly see what caused what.
- justincarter 4mo agoYes, I agree. The combination of minimal inflation and extremely low interest rates is not something pg created, but something he did benefit from, and he doesn't seem to realize that.