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Maybe someone who's read piketty book can explain something to me ? From what i've read, It claims that wealth growth is superior to economic growth, in the lo
by bsaul 12y ago
Maybe someone who's read piketty book can explain something to me ?
From what i've read, It claims that wealth growth is superior to economic growth, in the long term. But how can this be possible, since wealth growth is a part of economic growth ?
I mean, if a big family own a lot of real estates, and that real estate gains value, then doesn't this increase of value also makes the general economy grow as well ?
It can't be as trivial, so there's probably something i'm missing in the definitions. Anyone ?
- frandroid 12y agoI haven't read the book, but since the book is on inequality, it seems obvious to me that the problem is that the wealth growth is unevenly distributed, i.e. going mostly to the super-rich. So we have GINI-coefficients that grow rapidly around the world, especially in China and India, where globalization has also lifted tons of people out of poverty, and in the United States, which is still by a socialist government, if you listen to Republicans.
- kjjw 12y agoWhat is economic growth here? Piketty discussed the return on capital versus earnings. He doesn't claim one is superior to the other, or even that in the long run one will certainly trump the other. He simply argues based on the evidence that it is likely that in the long run, because it appears that the long trend is negligible economic and demographic growth, there is no intrinsic law within capitalism that ensures capital returns will not become so important that inequality can reach massive levels.