capital in the 21st century-Thomas Piketty


Capital in the 21st century

* Thomas Piketty 

(you may find figures and data at the above URL)


  • The history of income and wealth inequality is always political, chaotic and unpredictable; it involves national identities and sharp reversals; nobody can predict the reversals of the future

  • Marx: with g=0, β↑∞, r→0 : revolution, war

  • My conclusions are less apocalyptic: with g>0, at least we have a

    steady-state β=s/g

  • But with g>0 & small, this steady-state can be rather gloomy: it can involve a very large capital-income ratio β and capital share α, as well as extreme wealth concentration due to high r-g

  • This has nothing to do with a market imperfection: the more perfect the capital market, the higher r-g

  • The ideal solution: progressive wealth tax at the global scale, based upon automatic exchange of bank information

  • Other solutions involve authoritarian political & capital controls (China, Russia..), or perpetual population growth (US), or inflation, or some mixture of all 


you may find some comments made by Prof. Tang Shiping of Fuda University




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