Economics Quote by Thomas Piketty
““This fundamental inequality, which I will write as r > g (where r stands for the average annual rate of return on capital, including profits, dividends, interest, rents, and other income from capital, expressed as a percentage of its total value, and g stands for the rate of growth of the economy, that is, the annual increase in income or output), will play a crucial role in this book. In a sense, it sums up the overall logic of my conclusions.””
About This Quote
Source Book: Capital in the Twenty-First Century, 2013
The return on capital (r) exceeds economic growth (g), leading to wealth concentration and inequality.
In simple terms: Capital earns more than the economy grows, creating disparity.
Key Takeaway
Address the gap between r and g.
Themes
economics
inequality
wealth
growth
policy
Mood
concerned
analytical
Type
academic
policy-oriented
When to use this quote
- tax policy
- investment decisions
- public debate
- academic research
- social activism
Key Concepts
Capital returns
economic growth
distribution
social stratification
Questions to Reflect On
- How does r>g affect social mobility?
- What policies can narrow the r‑g gap?
A Different Perspective
If growth outpaces returns, the dynamic reverses.
