Capital in the 21st Century, Author: Thomas Piketty.
By Mark Gimein – 5 percent rate of growth routinely cited by Balzac and Austen is quite close to the mark; Thomas Piketty’s own calculations yield a number somewhere in the 4 or 5 percent range for the period in which they worked.
And that, unfortunately, is a lot faster than most economies grow.
Some of that capital, of course, gets spent to maintain the lifestyles of the rentiers. But the rest gets reinvested.
If the holders of capital manage to reinvest, say, three-fifths of their money (a number that Piketty takes as reasonable assumption), they will see their fortunes grow 3 percent a year.
That’s much faster than economies expanded through most of history. more> http://tinyurl.com/m29md7n
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