Capital in the 21st century video …
Capital in the 21st century video www.youtube.com/watch?v=wpGG3_pBHUc
"Thomas Piketty's book is one of the most discussed academic books published since the turn of the century".
"The book gives an analysis about the role that capitalism plays in global inequality".
"For exemple the hypothesis suggested by Kuznetsk that the capital curve of inequality rises when the country industrialises but then falls".
"throughout history the interest got from investing usually exceeds the annual growth rate of the overall economy".
"Thomas Piketty raises the question of : does the structure of capitalism eliminates inequality or reinforce it ? "
"Piketty disagrees with the hypothesis of Kuznetsk en does two things"
"Piketty argues that Kuznetsk data is misleading due to the fact that the data concerns a very unusual period of history".
"Piketty proposes the theory of the central contradiction of capitalism"
"For exemple the case of Jane and Joe"
"Jane and Jo they both earn 100.000$ a year and spend their whole salary every year
"Jane also has has 10.000.000 $ inheritance that he invests on a stock market and from which she obtains 500.000 $ of return over a ten years period of time".
"Joe has no savings
"After a year Joe will have nothing left over"
"Fast forward ten years the capital of Joe has grown very little. It depends on wether he is able to negotiate a raise".
"Following Piketty capitalism creates greater economy inequality"
""Picketty benefits from extra data to analyse
*"As a result"
"The growth rate or "g" has remained stable".
"The return on capital or "r" has increased in a relatively constant way of about 5%
"It's generally the rich and individuals who inherited who control the capital and wether is held as land, gold, bonds or an investment portfolio the growth rate has almost remained close to zero (reached 1-2% over the last two centuries)".
"To avoid this Piketty proposes a global tax on wealth that would effectively lower the rate of return on capital".