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Editorial

Editorial A&K Analyse & Kritik 2021; 43(1):1–3 https://doi.org/10.1515/auk-2021-0001 Somehow it has been known all along: economic and social inequality is growing. But somehow this too had to be written down in black and white in detail, including perhaps a number of good reasons for its lawlike quality and future resilience. This was the achievement of Thomas Piketty’s Capital in the 21st Century, highlighted by its notorious basic formula ‘r>g’. As it turned out the formula tried in a contentious way to put the inequality threat into a nutshell. Not to be mislead by a claim to originality, by the help of it Piketty did not want to reiterate something well-known in traditional growth theory: that the return to capital is normally higher than the growth rate of the economy in general. Instead, he tried to summarize a conclusion, for the first time achieved less by ideal theory than on the basis of acute historical observation: that saving by higher incomes compared to lower incomes leads to increasing economic inequality, given certain conditions (especially a low growth rate). The conditions for these inequality-rising consequences of the formula seem to be given in our current societies, and can be expected to continue http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Analyse & Kritik de Gruyter

Editorial

Analyse & Kritik , Volume 43 (1): 4 – Jun 1, 2021

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Publisher
de Gruyter
Copyright
© 2021 Walter de Gruyter GmbH, Berlin/Boston
ISSN
0171-5860
DOI
10.1515/auk-2021-0001
Publisher site
See Article on Publisher Site

Abstract

A&K Analyse & Kritik 2021; 43(1):1–3 https://doi.org/10.1515/auk-2021-0001 Somehow it has been known all along: economic and social inequality is growing. But somehow this too had to be written down in black and white in detail, including perhaps a number of good reasons for its lawlike quality and future resilience. This was the achievement of Thomas Piketty’s Capital in the 21st Century, highlighted by its notorious basic formula ‘r>g’. As it turned out the formula tried in a contentious way to put the inequality threat into a nutshell. Not to be mislead by a claim to originality, by the help of it Piketty did not want to reiterate something well-known in traditional growth theory: that the return to capital is normally higher than the growth rate of the economy in general. Instead, he tried to summarize a conclusion, for the first time achieved less by ideal theory than on the basis of acute historical observation: that saving by higher incomes compared to lower incomes leads to increasing economic inequality, given certain conditions (especially a low growth rate). The conditions for these inequality-rising consequences of the formula seem to be given in our current societies, and can be expected to continue

Journal

Analyse & Kritikde Gruyter

Published: Jun 1, 2021

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