Day 500, The r and g of Thomas Piketty
If r is the rate of investment return
And g, economic growth rate,
When r exceeds g, or what workers can earn.
Investors get more on their plate.
In capitalism, where r exceeds g,
We see inequality grow.
And that is the thesis of Tom Piketty. (1)
It’s something we all need to know.
It seems that our system will favor the rich.
If you’ve learned to read you can tell.
And that implies capitalism’s a bitch,
The poor will sink slowly to hell.
To increase equality, we must tax wealth
And not give rich folks big tax breaks.
The rich can afford it; it won’t harm their health,
Though they’ll whine and get stomach aches.
We err when we give the rich great big tax cuts,
(If we want more equality.) (2)
Progressive taxation on wealth takes more guts
Than Congress has shown you and me.
If we don’t tax wealth, inequality grows;
The poor become demoralized.
Along will come Trump, who will tell them he knows
The reason why they’re agonized.
“Return to the past; re-pollute land and sea;
“Make Muslims and Mexicans foes,”
When even the “Christians” don’t care if he lies,
Guess what? Inequality grows.
(1) Capital in the Twenty-first Century, Thomas Piketty, 2013
When r>g, wealth will concentrate more and more in the hands of a very
few. Based on an analysis of 200 years of economic data from Europe and
the USA. r>g is, of course, not the only consideration.
(2) Do we?