Did Piketty read Marx?
But one thing is certain: Piketty did read Marx, and did think about him. OK, one simple illustration: The profit might have been $200 on an enterprise that paid $500 in materials and depreciation and $500 in wages.
Is R greater than g?
This formula states that the net rate of return to capital (r) exceeds the growth rate of output (g). This is not a new concept for economists. The formula r > g is a standard property of efficient capital markets in most modern macroeconomic models.
What is inequality Piketty?
To Piketty, history is a battle of ideas. Every unequal society, he says, creates an ideology to justify inequality – that allows the rich to fall asleep in their townhouses while the homeless freeze outside. He recounts the justifications that recur throughout history: “The wealth will trickle down”.
What is patrimonial capitalism?
In China, the socialist market economy has, as in other nations, developed into a “patrimonial capitalism” (Piketty’s term for unequal capitalism in the West), in which wealth is handed down from one generation to the next.
What type of economist is Piketty?
Piketty’s work focuses on public economics, in particular income and wealth inequality. He is the author of the best-selling book Capital in the Twenty-First Century (2013), which emphasises the themes of his work on wealth concentrations and distribution over the past 250 years.
What did Thomas Piketty believe?
Piketty’s principal claim in Capital in the Twenty-first Century was that there is a “central contradiction of capitalism.” He maintained that the average return on capital exceeds the rate of economic growth, so without countervailing factors—such as World Wars I and II, the Great Depression of the 1930s, or specific …
What is capital under capitalism?
In a capitalist economy, capital assets—such as factories, mines, and railroads—can be privately owned and controlled, labor is purchased for money wages, capital gains accrue to private owners, and prices allocate capital and labor between competing uses (see “Supply and Demand” in the June 2010 F&D).
What is y * in Macroeconomics?
output or income (Y*) ➢ At Y* the goods market is in equilibrium. ➢ The economy has produced (Y) exactly what economic. agents were planning to purchase (AE)