Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Well, I would (and will) argue that, although you can make a case that r>g is almost a constant, it is not because of any actual economic grand truth, but because of a politics constant that the wishes of the mighty are listened to and acted upon.

r is constantly being propped up. Increasingly so under threat: "you give that to us or we move our capital to China/Caiman Island... insert wherever".
Interestingly, that is also the argument of the "super-managers", pretending that they must be paid a fortune because it is a global market where others are paid a fortune and they would leave the minute they were given a penny less.

When French CEOs claim that, it is quite extraordinary. For, as a few minutes of observations would show, the number of French CEOs of foreign mega multinational corporations is... zero (unless you count Renault-Nissan as a Japanese company, and anyway Ghosn is binational).

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Fri Apr 25th, 2014 at 02:21:03 AM EST
[ Parent ]

Others have rated this comment as follows:


Top Diaries

Occasional Series