What is Piketty's r > g theory?
The 'r > g' relationship, which I developed, posits that the rate of return on capital (r) is typically greater than the rate of economic growth (g). When this condition holds, as it has for much of history and is re-emerging today, wealth accumulated in the past grows at a faster pace than income from labor. This leads to an increasing concentration of wealth and exacerbates inequality, as those who already possess capital benefit disproportionately.
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