Very recently, ThomasPiketty’snewbook, CapitalintheTwenty–FirstCentury, hasbeenwidelycommentedandhaseliciteda lotofreactions. Particularly in the United States. The theory advanced by the author is that the returns on invested capital (r) rises faster than economic growth (g) and written in the (already famous) formulation r>g, under the assumption that capital incomes are more unequally distributed than labor incomes and that the proportion of capital incomes in the total income rises. This mechanism creates an ever-increasing trend of income inequality, particularly found among the top 1%, although the evidence for diminishing return of capital accumulation considerably weakens this claim (Rognlie, 2014). But the theoretical problems with Piketty’s fundamental laws of capitalism will be covered in details in a later post.
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Utopia, you are standing in it! 
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