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I'm not sure I understand how this would work.
In what he calls capital, you find land and government bonds. These would not require any energy or manhours, would they?

I feel that something like productivity of the capital may be interesting. Very hard to measure, of course, but at the point where I am in the book it seems that Piketty just assumes it's pretty much 5% of its market value all the time (as a long run average at least), which would then make it somewhat tautological. But even if true (which I doubt to some extent), it may be 5% because it's heavily taxed and thus its market value drops, or because it's not taxed and the long-term market value would be very high.
You'd have very different societies in either case. And probably different growth and savings trajectories -and they have a major impact on the capital to revenue ratio in the long run of course.

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

by Cyrille (cyrillev domain yahoo.fr) on Sat Apr 12th, 2014 at 03:08:34 AM EST
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