The World's Best Book Summaries
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.
Who’s Naval Ravikant? What wisdom does he have to share about building wealth and happiness in life? Many everyday people strive for wealth and happiness, but most of us struggle along the way and very few seem to achieve both. Still fewer share their insights about how to get there. Entrepreneur Naval Ravikant has become known for doing this online, via Twitter, podcasts, interviews, and blog posts. The Almanack of Naval Ravikant is a collection of those insights on wealth and happiness compiled by business blogger Eric Jorgenson. Keep reading for an overview of The Almanack of Naval Ravikant by
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 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.
Why should you have passive income? What can passive income do that active income can’t? Working for wages is no way to achieve financial freedom. That’s the view of Naval Ravikant, who argues that passive income is the way to go. He explains why that is, and he identifies what he thinks is the best way to generate passive income. Keep reading to learn Ravikant’s view on why passive income is important.
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’s leverage? How can you use this principle to build wealth over time? The Almanack of Naval Ravikant shares Ravikant’s ideas on leverage. He argues that leverage is a key component of building a passive income. He explains how you can leverage labor, money, and products that can be replicated without further inputs. Keep reading to learn about three types of leverage in financial management.
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.
Why do you need a will? What would happen to your assets if you don’t have one? An important part of sound personal finances is protecting yourself and your family. If you don’t have a will, all of your financial planning and success could be lost after you’re gone. David Chilton, in his book The Wealthy Barber, strongly advises that you have a will in order to leave a strong financial legacy and protect your family. Read more to learn why it’s important to have a will.