- The rate of return to investors (r) is higher than the growth rate of the economy (g).
- That is producing increasing inequality.
- We need a wealth tax.
- The basic thesis is false: r > g does not imply increasing inequality. That is inconsistent with well-known, well-tested economic theory.
- Rich people accumulating capital is good for the poor. More capital leads to higher wages.
- There is a lot of mobility among the wealthy. About 60% of the people on the Forbes 400 list were not there in 2001. More than 25% of the list in 2001 were not there three years earlier.
- Bill Gates and Warren Buffett are two two richest people the country. They are giving almost all their wealth to the poorest people in the world. That’s not bad thing.
- The claim that there is rising inequality ignores implied wealth from government transfer programs and generally ignores private pension assets as well.