--- title: "Meaning & Key Takeaway of: When the rate of return on capital…" description: "\"“When the rate of return on capital significantly exceeds the growth rate of the economy (as it did through much of history until the nineteenth centur..." image: "https://sms4smile.com/quotes/i/f7a/thomas-piketty-3584_economics_when-the-rate-of-return-on-capital-signi_608716.png" --- # When the rate of return on capital significantly exceeds… ![“When the rate of return on capital significantly exceeds the growth rate of the economy (as it did through much of history until the nineteenth century and as is likely to be the case again in the twenty-first century), then it logically follows that inherited wealth grows faster than output and…” quote by Thomas Piketty](https://sms4smile.com/quotes/i/f7a/thomas-piketty-3584_economics_when-the-rate-of-return-on-capital-signi_608716.png) [Download](https://sms4smile.com/quotes/i/f7a/thomas-piketty-3584_economics_when-the-rate-of-return-on-capital-signi_608716.png) [Open image](https://sms4smile.com/quotes/i/f7a/thomas-piketty-3584_economics_when-the-rate-of-return-on-capital-signi_608716.png) > ““When the rate of return on capital significantly exceeds the growth rate of the economy (as it did through much of history until the nineteenth century and as is likely to be the case again in the twenty-first century), then it logically follows that inherited wealth grows faster than output and income. People”” [Thomas Piketty](https://sms4smile.com/quotes/author/thomas-piketty/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. When capital returns outpace economic growth, inherited wealth accumulates faster than new income, widening inequality. **In simple terms:** High returns beat growth, inheritance grows faster. Key Takeaway Address wealth concentration early. Themes economics inequality wealth growth policy Mood concerned analytical Type economic political When to use this quote - tax policy design - estate planning - public debate on inequality - financial education Key Concepts Capital returns intergenerational transfer economic growth wealth accumulation Questions to Reflect On - How can societies curb wealth concentration? - What policies could align returns with growth? A Different Perspective Assumes constant return rates; ignores policy changes. ★ ★ ★ ★ ★ No ratings yet [Economics](https://sms4smile.com/quotes/about/economics/) [Inherited wealth](https://sms4smile.com/quotes/about/inherited-wealth/) [Money](https://sms4smile.com/quotes/about/money/) [Productivity](https://sms4smile.com/quotes/about/productivity/) [Wealth](https://sms4smile.com/quotes/about/wealth/) ## Related quotes > [“With Cosmic Ordering it’s not only your wealth that grows, your mind does too!”](https://sms4smile.com/quotes/stephen-richards/with-cosmic-ordering-it-s-not-only-your-wealth-that-grows-your-mind/) [Stephen Richards](https://sms4smile.com/quotes/author/stephen-richards/) > [The U.S. is the country that invented progressive taxation of income and of inherited wealth in the 1910s and '20s.](https://sms4smile.com/quotes/thomas-piketty/the-u-s-is-the-country-that-invented-progressive-taxation-of-income/) [Thomas Piketty](https://sms4smile.com/quotes/author/thomas-piketty/) > [“Other things being equal, strong demographic growth tends to play an equalizing role because it decreases the importance of inherited wealth: every generation must…](https://sms4smile.com/quotes/thomas-piketty/other-things-being-equal-strong-demographic-growth-tends-to-play-an/) [Thomas Piketty](https://sms4smile.com/quotes/author/thomas-piketty/) > [Instead of promoting inherited wealth for the few, I want to tackle inherited disadvantage for the many.](https://sms4smile.com/quotes/liz-kendall/instead-of-promoting-inherited-wealth-for-the-few-i-want-to-tackle/) [Liz Kendall](https://sms4smile.com/quotes/author/liz-kendall/) > [I know of a few multimillionaires who started trading with inherited wealth. 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