Yes, r > g. So What?
- (pp. 43-47)
AbstractPiketty argues that r > g is the "the central contradiction of capitalism" and that it will lead to an "endless inegalitarian spiral." As a result, he argues for a new global tax on capital. In this brief essay, I explain why I am not persuaded by either his prediction or his prescription.
CitationMankiw, N Gregory. 2015. "Yes, r > g. So What?" American Economic Review, 105 (5): 43-47. DOI: 10.1257/aer.p20151059
- E22 Investment; Capital; Intangible Capital; Capacity
- E23 Macroeconomics: Production
- E25 Aggregate Factor Income Distribution
- H87 International Fiscal Issues; International Public Goods
- O41 One, Two, and Multisector Growth Models
- P16 Capitalist Systems: Political Economy