Munich Personal RePEc Archive

The (F)Laws of Piketty’s Capitalism: A Fundamental Approach

de la Fonteijne, Marcel R. (2014): The (F)Laws of Piketty’s Capitalism: A Fundamental Approach.

[thumbnail of MPRA_paper_72719.pdf]

Download (513kB) | Preview


The book 'Capital in the Twenty-First Century' by the French economist Piketty about the inequality of income and wealth distribution is already quite a while in the spotlights. Throughout his book he uses two formulas which he has named ‘the first fundamental law of capitalism’ and ‘the second fundamental law of capitalism’. With his reasoning he tries to show that, with these laws in place, he is capable to explain inequality phenomena with respect to the income and wealth distribution.

Without going into the significance of his reasoning and conclusions, we will show that the use of the laws, the way he does, is fundamentally wrong.

We suggest alternative formulas and a new approach. The inequality r>g is in our opinion not a meaningful equation with respect to inequality.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.