Capital in the Twenty-First Century

In the book "Capital in the Twenty-First Century," the argument is made that the inequality of wealth in Capitalism cannot be solved by leaving it alone, and the wealth gap will continue to widen. This is represented by the inequality 'r>g'. Assets (or Capital) generate wealth at a faster rate than wealth obtained through labor, which means that Asset Management leads to faster growth in wealth. In other words, wealthy people who have assets become even wealthier, while those who can only obtain wealth through labor cannot become relatively wealthy forever.

So, how can we leverage the concept of "r > g" to build wealth in the future? However, as even Thomas Piketty himself acknowledges, it is practically impossible to realize this idea. Therefore, those of us living within capitalism must take some action within the reality of "r > g".

For those who already have significant assets and stand on the "r" side of "r > g", there is no problem. The problem lies with the average business person who is not a wealthy asset owner. Simply put, they should consider starting Asset Management. For example, they could start investing in stocks or real estate.

Related topics include the economic inequality caused by the Corona pandemic and the works of Thomas Piketty.