Piketty with Chinese Characteristics
In Capital in the Twenty-First Century, Thomas Piketty argues that capitalism aggravates inequality through several mechanisms, all of which are based on the notion that the return on capital falls less quickly than growth in income. This framework fits China’s recent experience well, and thus merits closer examination.
https://prosyn.org/4Ujq76v
HONG KONG – In his bestselling book Capital in the Twenty-First Century, Thomas Piketty argues that capitalism aggravates inequality through several mechanisms, all of which are based on the notion that r (the return on capital) falls less quickly than g (growth in income). While debate about Piketty’s work has focused largely on the advanced economies, this fundamental concept fits China’s recent experience, and thus merits closer examination.