The World's Best Book Summaries
Why are more people inheriting wealth? How does inherited wealth contribute to rising inequality? During their lifetimes, baby boomers accumulated large stocks of capital. As they begin to pass away, their children are inheriting this wealth—but it’s creating an unequal society. Keep reading to learn why a new Gilded Age might be upon us thanks to a growth in inherited wealth.
What does R>G mean in economics? What is one of the fundamental laws of capitalism? The formula R>G states that the net rate of return on capital (R) is greater than the economic growth rate (G). In Capitalism in the Twenty-First Century, Thomas Piketty claims this is one of the fundamental laws of capitalism. Read more to learn how R>G explains wealth inequality.
What does “capital’s share of income” mean? Should you worry about capital accumulating national income? Thomas Piketty warns that the rising capital-to-income ratio will result in capital accumulating an ever-growing share of national income. In his book Capital in the Twenty-First Century, he explains how this happens and why it’s bad. Continue reading to understand how capital’s share of income contributes to inequality.
What is the future of population growth? How does population affect the economy? In Capital in the Twenty-First Century, Thomas Piketty says that population growth will likely slow in future decades. This means that production will slow down and the capital-to-income ratio will rise. Check out why the future of population growth is essential for the economy.
What does economic gender inequality look like? What are women’s economic disadvantages? Caroline Criado Perez asserts that the gender data gap harms women’s economic standing. This is a failure that results in discriminatory systems that harm women’s finances. Read more to learn how the gender data gap results in workplaces that don’t consider women’s needs.
What is the capital-to-income ratio? How does it help us understand wealth inequality? According to Thomas Piketty, the capital-to-income ratio is the total stock (meaning the total inventory) of all the assets owned by residents of a country divided by total national income. Piketty further stresses that national capital and national income aren’t the same things. Keep reading for an in-depth look at the capital-to-income ratio.
What is an annual wealth tax? How can it help increase wealth equality? A wealth tax is an annual tax on a person’s net worth, which includes personal assets and ownerships. In the book Capital in the Twenty-First Century, Thomas Piketty says that a global wealth tax has many benefits, including the even distribution of economic resources. Continue reading for an overview of the proposed wealth tax.
What is a progressive income tax? Why should the wealthy pay more taxes? In Capital in the Twenty-First Century, Thomas Piketty argues that since the 1980s, wealth inequality has made a troubling comeback that demands a response. His proposed solution is a progressive income tax. Read more about Piketty’s case for progressive taxation and why other economists think differently.
What is the difference between money and wealth? Which one should be your focus? Typically, we understand wealth to be the same as net worth, the sum of your assets. However, entrepreneur and self-made millionaire Naval Ravikant sees wealth a bit differently. The Almanack of Naval Ravikant shares his definition of wealth and how he distinguishes it from money. Then, it explains why Ravikant believes you should focus on generating wealth rather than money. Keep reading to learn about this way of looking at money and wealth.
What are diminishing returns? If you want to learn a new subject, should you read every book on it? Why do horror movies seem to become trite after a while? In The Great Mental Models Volume 3, Rhiannon Beaubien and Rosie Leizrowice include diminishing returns as one of the thinking models that can boost your understanding and decision-making ability. While the law is often used in an economic context, the authors extend the principle to everyday applications. Read more to learn about diminishing returns and how understanding them can help you understand so much more.