Claire Ban, Alex Ang Siyuan, William Tan: I think you guysd be interested in this. Lemme know what you think! The biggest factor is that the technology-driven economy greatly favors a small group of successful individuals by amplifying their talent and luck. What particularly worries Piketty is the long-term effect of this concentration of wealth. A central point of his book is the simple statement r > g, where r is the average return on capital and g is the economic growth rate. When the rate of return on capital exceeds the growth rate (which he says is what happened until the beginning of the 20th century and is likely to happen again as growth slows), then the money that rich people make from their wealth piles up while wages rise more slowly if at all. The implications of this should be frightening for anyone who believes in a merit-based system.
Posted on: Sun, 26 Oct 2014 09:56:58 +0000
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