Must-Read: Heather Boushey, Brad DeLong and Marshall Steinbaum: Equitable Growth in Conversation

Must-Read:: Buy our After Piketty: The Agenda for Economics and Inequality http://amzn.to/2oPZMwu:

Heather Boushey, Brad DeLong and Marshall Steinbaum: Equitable Growth in Conversation: Marshall Steinbaum: “I think the key question… in Piketty terms [is]… https://equitablegrowth.org/research-analysis/equitable-growth-in-conversation-brad-delong-and-marshall-steinbaum/

…why does [the rate of profit] r not fall as capital is accumulated as a neoclassical model of the macroeconomy would predict? This is a very clear finding in the aggregate data that Piketty presents over the long time horizon: the return to capital is more or less constant, even as the amount of capital in the economy is not constant at all. That’s a huge challenge to a Ricardian classical or neoclassical theories that come from it. I don’t think that we have the definitive answer to… why is the capital share or the profit share in the economy so high, and what are the strategies by which owners of capital have redirected the flow of rents to themselves, when supposedly competitive pressures would have been pushing down the return to capital…