BOOK · [4404]
Capital in the Twenty-First Century
Economics
An influential economic analysis arguing that the return on capital tends to exceed economic growth, driving wealth inequality. Piketty marshals centuries of data to make his case.
Endorsed By
2 People-
David Heinemeier Hansson
Listed among DHH's recommended books on Read This Twice.
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Bill Gates
Gates wrote a detailed response to Piketty's book.
Criticized By
2 People-
Larry Summers
“It presumes, first, that the return to capital diminishes slowly, if at all, as wealth is accumulated and, second, that the returns to wealth are all reinvested. Whatever may have been the case historically, neither of these premises is likely correct as a guide to thinking about the American economy today.”
In his Democracy Journal review 'The Inequality Puzzle,' Summers argues against Piketty's central mechanism — that because r exceeds g, wealth-to-income ratios inexorably rise — contending it wrongly presumes capital returns diminish slowly and that returns are fully reinvested.
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Matt Ridley
“the widespread assumption that income inequality has also been shooting upwards is plain wrong”
Ridley argues against Piketty's thesis that inequality is inexorably rising, contending that disposable-income inequality has actually fallen and that Piketty overstates the growth of wealth inequality.