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Thursday, December 10, 2015
10/12/15: R v G and all the Pikettian Theory Malarky
You know the Pikettian Thesis that if return on capital exceeds in the long run economic growth, then capital income appreciation relative to wages income growth will lead to rising wealth inequality. Except, err...
Which says, really, that since the start of the 20th century, wages income of the richest 1% became more important in the determination of their full income, whilst entrepreneurial income remained roughly the same, and capital income shrunk. R > G and all that malarky...
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“It is not true that people stop pursuing dreams because they grow old, they grow old because they stop pursuing dreams.” Gabriel García Márquez
Nassim Nicholas Taleb was asked whether public protests in Athens is a Black Swan Event. He replied: “No. The real Black Swan Event is that people are not rioting against the banks in London and New York.”
"Getting worse more slowly is not the same as getting better", Prof. Brad DeLong