Name: New thoughts on capital in the twenty-first century
Uploaded: 2014-10-06T14:26:39Z
Duration: 20 min 50 s
Description: French economist Thomas Piketty caused a sensation in early 2014 with his book on a simple, brutal formula explaining economic inequality: r > g (meaning that return on capital is generally higher than economic growth). Here, he 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.

French economist Thomas Piketty caused a sensation in early 2014 with his book on a simple, brutal formula explaining economic inequality: r > g (meaning that return on capital is generally higher than economic growth). Here, he 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.

New thoughts on capital in the twenty-first century

Economic inequality rises when the return on capital consistently exceeds economic growth. Historical data shows the top 10 percent now hold 60 to 70 percent of total wealth, a dramatic concentration compared to a century ago. The gap between returns on wealth and overall economic growth accelerates this trend, making it easier for fortunes to multiply across generations. Without new policies, this imbalance threatens social mobility and the foundations of democratic societies.

When Wealth Outpaces Growth, Inequality Deepens and Democracy Falters

*Capital in the Twenty-First Century*

r > g: explained