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In Reply to: Economics: generational super-wealth: It's a caste system, let's be clear. posted by tinear on January 8, 2021 at 14:47:22:
He had done the data collection and the math for us.
I am not showing the math for R(eturn on capital) and G(rowth rate of an ecoomy) here, but it is widely available.
And his conclusion is clear:
"
When the rate of return on capital significantly exceeds the
growth rate of the economy (as it did through much of history until the nineteenth century and as is likely to be the case again in
the twenty-first century), then it logically follows that inherited
wealth grows faster than output and income.
People with inherited wealth need save only a portion of their income from capital to see that capital grow more quickly than the economy as a whole.
Under such conditions, it is almost inevitable that inherited
wealth will dominate wealth amassed from a lifetime of labor by a
wide margin, and the concentration of capital will attain extremely high levels potentially incompatible with the meritocratic values and principles of social justice fundamental to modern democratic societies.
"
Now we all know there are plenty of science deniers around, and of course they will cling to their biases and anecdotes and deny the data since the data does not support their political notions.
Ignore those people.
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Follow Ups
- Read Pikketty - LtMandella 01/9/2109:21:36 01/9/21 (1)
- Been there, done that. Thanks. nt - tinear 10:30:22 01/9/21 (0)
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