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Well, "r>g" is obviously subject to the bargaining power of labour vs capital, and to tax and general economic environment. The only reason to suppose that it's "natural" is to regard the capture of political power by capital as "natural". Immanent Will? Manifest Destiny? Invisible Hand? My arse.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Mon Jun 2nd, 2014 at 10:24:47 AM EST
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Just a clarification : when Piketty talks of r, it is pre-tax.
That does not mean that tax levels would not have any effect on r, but you can imagine a situation with a high pre-tax r, yet no increase in inequality thanks to taxes -in fact, that is precisely what he would like to achieve, while acknowledging that at world level it is at present a utopia.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
by Cyrille (cyrillev domain yahoo.fr) on Mon Jun 2nd, 2014 at 10:34:17 AM EST
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Overgrown capital has nothing much to do but to corrupt the political power and take it over, create its won reality. Try to prevent that! Capital also has stategic patience, can disguise appearances (even in good times), provide distractions quickly, or threaten to withdraw.
by das monde on Mon Jun 2nd, 2014 at 10:42:22 AM EST
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