Summary of New Thoughts on Capital in the 21st Century

Looking for the video?
We have the summary! Get the key insights in just 5 minutes.

New Thoughts on Capital in the 21st Century  summary
Start getting smarter:
or see our plans

Rating

8

Qualities

  • Eye Opening
  • Background
  • Comprehensive
  • Innovative

Recommendation

Economist Thomas Piketty has the honor of being the author of one of the least-read bestsellers of recent times. In this illuminating lecture, Piketty efficiently summarizes the main themes of his 700-page masterwork and makes them easily accessible for a general audience. getAbstract recommends this oration to all those daunted by Piketty’s book but nonetheless intrigued by what the data say about wealth concentration and income inequality through the ages.

In this summary, you will learn

  • What the historical relationship between the rate of return and growth has been,
  • How this affects the concentration of wealth, and
  • What steps would help to better understand and limit this concentration.
 

About the Speaker

Economist and professor Thomas Piketty is best known for his 2014 book, Capital in the Twenty-First Century.

 

Summary

Historical data show that the return on capital exceeds the growth rate of an economy (or, in other terms, r > g), and that leads to growing concentrations of wealth. Until the Industrial Revolution, growth rates were negligible, while rates of return were about 5%, which led to the accumulated fortunes of the landed aristocracies that dominated in the preindustrial age.

While growth rates increased during the Industrial Revolution, returns on capital also increased, leaving the relative levels largely unchanged. The shocks of the 20th century – two world wars, a depression and the introduction of progressive taxation on incomes...


More on this topic

By the same author

Capital in the Twenty-First Century
8
Economic Growth in the US
9

Customers who read this summary also read

A Healthy Economy Should Be Designed to Thrive, Not Grow
9
Blockchain
7
Opening Plenary with Xi Jinping, President of the People’s Republic of China
8
The Value of Entrepreneurship, with Philip Kotler
8
Doesn't Everyone Deserve a Chance at a Good Life?
8
3 Myths About the Future of Work (and Why They’re Not True)
8

Related Channels

Comment on this summary