Some Brain Food. French economist Thomas Piketty caused a sensation earlier this year with his book on a simple, brutal formula explaining economic inequality: r > g (meaning that return on capital is generally higher than economic growth). Its impossible to try and summarise his 696 page book Capital in the 21st Century in a paragraph or two what Piketty has done by wading through huge amount of historical data what we intuitively know from observation - that over time wealth tends to grow faster than the overall economy. So if you buy some land, say, the value of the land generally goes up in NZ even though you do nothing to it. Result? Your Wealth increases. But in terms of the total population only a few people can increase their wealth in this way and they tend to hold on to it. Income from labor on the other hand - employment, wages etc - is spread around a lot in the things we buy. Here, Piketty talks through the massive data set that led him to conclude: Economic inequality is not new, but it is getting worse, with radical possible impacts. ted/talks/thomas_piketty_new_thoughts_on_capital_in_the_twenty_first_century?language=en
Posted on: Wed, 08 Oct 2014 03:56:05 +0000
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