1. Of course that over the long term, r will become equal to g (well, it's actually mathematically possible that r > g forever). But the point is that we don't want to live in a world where 90% of the GDP goes to people who own capital.
2. The volatility argument says, that even if r = g over the long-term, the per-year average of r can be bigger than the per-year average of g. What Piketty's claim does it debunk?
Comments
1. Of course that over the long term, r will become equal to g (well, it's actually mathematically possible that r > g forever). But the point is that we don't want to live in a world where 90% of the GDP goes to people who own capital.
2. The volatility argument says, that even if r = g over the long-term, the per-year average of r can be bigger than the per-year average of g. What Piketty's claim does it debunk?