What about capital, better get it from work or inheritance?
During this summer vacations, I visited a friend and I was able to flip through this book written by Thomas Picketty, *Capital in the 21rst Century*. My basic education was more in engineering and business, than economy, so I skip many pages to jump to the conclusion, and I was stroke by “The Central Contradiction of Capitlalism: r > g”.
“The overall conclusion of this study is that a market economy based on private property, if left to itself, contains powerful forces of convergence, associated in particular with the diffusion of knowledge and skils; but it also contains powerful forces of divergence, which are potentially threatening to democratic societies to the value of social justice on which they are based.
The principal destabiliting force has to do with the fact that the private rate of return on capital r , can be significantly higher for long periods of time, than the rate of growth of income and output, g.
This inequality r>g implies that wealth accumulated in the past grows more rapidly than output and wages.”
Am I stupid?
Studies and hard work, against my brothers and sister who just want to inherite a capital (small or large?, asumed or real?)? You just have to wait and see?
If you want to create Something with your knowledge, it is hard. 1 product out of 10 is a real success. I can understand why it is so difficult to raise capital, because your investors will mechanically lose from their accumulation of capital, and certainly become poorer.
During that time, some other are in ambush, just waiting you fail, to accumulate the wealth you have created “with the sweat of your forehead”, just being there at the right time and the right place.
And as inheritage is more profitable than work, your children will also tend to push you outside to inherite?
I now understand why conservative forces are so strong, why inheritance is so important and why so many dispute arise at the time of your death. Just because accumulation is more profitable than creation and evolution? Richs are getting richer, poors poorer. Look at the concept of stability of the society.
Is it the meaning of life? Give me your comment!