Capital in the Twenty-First Century (122 page)

Divisia, François, 591n19

Django Unchained
(film), 163

Domar, Evsey, 230–­231

Domestic capital, 49; in Britain and France, 117–­119; in Germany, 141, 143; in the
United States, 150–­151, 155; in Canada, 157; slavery and, 158–­163, 593n16

Domestic output/production, 44–­45, 598n3

Douglas, Paul, 599n18

Dowries, 392, 418

Duflo, Esther, 634n49

Duncan, G., 632n30

Dunoyer, Charles, 85

Dupin, Jean, 591n19

Durable goods and valuables, 179–­180, 594n13

Durkheim, Emile, 422, 621n55

Duval, Guillaume, 592n6

Earned and unearned income: inheritances and, 377–­379, 390; taxation and, 507–­508

Eastern bloc countries, privatization in, 186–­187

ECB (Eu­ro­pe­an Central Bank), 530, 545, 550–­552, 553, 557–­558, 649n26

“Ecological stimulus,” 568

Economic determinism, 20

Economic flows, 381–­383

Economic growth, 72–­74, 84, 93–­94; stages of, 86–­87; in postwar period, 96; social
order and, 96.
See also
Per capita output growth

Economics, 3, 10, 32–­33, 573–­577

Economies of scale, portfolio management and, 431, 440, 450–­451

Educational system: convergence and, 22, 71; technology and, 304–­307; in­e­qual­ity
and, 313, 314–­315, 419–­420, 608–­609n12, 632n36; public spending in, 477, 482, 629n14;
social mobility and, 484–­487

Egypt, 538

Elasticity of substitution, 216–­224, 600n32

Emerging economies: in­e­qual­ity of labor income and, 326–­330; inheritances in,
428–­429; social state in, 490–­492, 633n49

Engels, Friedrich, 9, 579n4

En­glish Revolution, 30

Entails, 362–­363, 451

Entrepreneurial income, 204

Entrepreneurial labor, 41

Entrepreneurs in wealth rankings, 439–­443

Equalization and growth, 83–­85.
See also
Convergence

Equations:
r
>
g
, 25–­27, 353–­358, 361, 365–­366, 375–­376, 395–­396, 424, 563–­564, 571–­572, 614n26;
β
=
s / g
, 33, 50–­55, 166–­170, 187, 228, 230–­232;
α
=
r
×
β
, 33, 52–­55, 168–­169, 199, 213, 216–­217;
g
=
s
/
β
, 230–­231;
r
−
g,
364–­366, 431, 451;
b
_y
=
μ
×
m
×
β
, 383;
r
=
g,
563;
α
=
s
and
α
>
s
, 563–­564

Equilibrium distribution, 361–­366

Equipartition, 362–­363, 365

Erreygers, G., 637n29

Estate devolution, rate of, 389, 617n10

Estate tax, 337–­339, 355, 497; returns as source of data, 18–­19; accumulation of
wealth and, 374–­375; progressive, 502–­505, 507

Eu­ro­pe­an Aeronautic, Defense, and Space Co. (EADS), 445

Eu­ro­pe­an Central Bank.
See
ECB (Eu­ro­pe­an Central Bank)

Eu­ro­pe­an Commission, 553

Eu­ro­pe­an Constitutional Treaty, 650n30

Eu­ro­pe­an Parliament, 559

Eu­ro­pe­an wealth tax, 527–­530

Eu­rope/Eu­ro­pe­an ­Union: global production and, 59–­61; as regional bloc, 61–­66,
68–­69, 585n22; demographic growth in, 78–­79, 81–­82; economic growth of, 86–­87,
93–­95, 96–­98, 99, 174, 595n20; inequalities in capital own­ership in, 243–­345;
income inequalities in, 247–­250, 255, 321–­323; wealth distribution in, 343–­345,
350, 643nn24,25; inheritances and, 424–­427; net assets of, 463–­464, 627n50; taxes
in, 475–­476, 490; social state in, 477–­478, 630n17; social model of, 481; directive
on foreign savings of, 522–­524; public debt and, 556–­562; bud­getary parliament
for, 559–­560, 650n28; mutualizing public debt in, 650n31.
See also
Belle Époque

Eurozone, 108, 544–­545, 554–­562; deficits debate in, 565–­567, 653n47

Exchange rates, 64–­67, 585–­586n25

Executives: compensation of, 331–­335, 639n47, 640n49; confiscatory tax on income
of, 505–­512.
See also
Managers

Fack, Gabrielle, 626n34

Factorial distribution, 40, 583n3

Family fortunes: shocks and, 362, 364, 369; taxation and, 374; desire to perpetuate,
391–­392, 400

Farmland, as capital: in Britain and France, 117, 119, 122–­123, 590n1; in Germany,
141; in America, 150–­152, 155; pure value of, 197

Favre, P., 633n42

Federal Reserve, 474, 548–­552, 557

Fertility.
See
Birth rates

Financial assets, 209, 627n43; prices of, 171–­172, 187–­191, 452–­453

Financial crisis (2008), 296–­298, 472–­474, 549–­550, 558

Financial globalization, 193–­194, 355, 430

Financial intermediation, 205, 214, 233, 430–­431, 453, 541

Financial legal structures, 451–­452

Financial markets, 49, 58, 476

Financial professions, 303

Fiscal flows, 381–­382

Fiscal pressure, 208

Fiscal transactions tax, 651n38

Fisher, Irving, 506

Fitoussi, Jean-­Paul, 603n25

Flat tax, 495, 500–­501

Fleurbaey, Marc, 631n23

Flows: capital-­labor split and, 203–­204; of annual inheritances, 379–­382

Fogel, Robert, 159

Forbes, Steve, 442, 624n19

Forbes
wealth rankings, 432–­434, 439–­443, 458, 518, 625n23

Foreign Account Tax Compliance Act (FATCA), 522–­524

Foreign capital/assets, 49–­50; convergence and, 69–­71; in Britain and France, 117–­119,
148, 590n7; rise and fall of, 120–­123, 369–­370; in Germany, 141–­142, 596n25; in
the United States, 151, 155–­156; New World and, 155–­157; in Canada, 157–­158; national
capital and, 191–­194; convergence and, 587n36

Foundations, as private wealth/capital, 182–­183, 451–­452, 626nn32,33

Fourquet, François, 585n19

France: growth in, 4, 81–­82, 98, 174; estate tax in, 18–­19, 337–­339; data from,
28–­30, 56–­57, 604n8; national income and, 68–­69; purchasing power and, 88–­89;
employment by sector in, 91; monetary system of, 104, 589n27, 590n29; per capita income
in, 106, 122, 590n31, 590–­591n8,9; inflation in, 107–­108, 133, 149, 545, 546; capital
in, 116–­127, 148–­149; foreign capital/assets and, 117–­119, 148, 191–­192, 590n7,
596n29; public debt of, 124–­126, 127, 129, 132–­133, 591nn13,14, 592n8; taxation
in, 129, 275, 365, 370, 496, 498–­505, 507, 605n16, 634n5, 635–­636n15, 635n11; capitalism
without capitalists in, 135–­139; public assets in, 136–­139, 184; savings in, 177–­178;
capital-­labor split in, 201, 204, 205, 206–­208, 216, 225–­227; in­e­qual­ity in,
271–­281, 284–­291; wealth distribution in, 337–­343, 346, 364–­366; inheritances
in, 379–­382, 385–­396, 399, 402–­409, 418, 420–­421, 427; mortality rate in, 385–­388,
616n9; voting rights in, 424, 622n58; taxes as share of national income in, 475–­476,
629n6; social state and, 478, 495, 630n16; wealth tax in, 533, 643–­644n26, 645n38

France Telecom, 139

French Revolution: data and, 29–­30, 56; inflation and, 104; wealth distribution and,
341–­342, 362–­363; Civil Code and, 364–­366; progressivity and, 532

Fried, Jesse, 611n35

Friedman, Milton, 548–­549

Furet, François, 225, 575–­576, 582n34

Gabaix, Xavier, 639n47

Gadenne, Lucie, 633n48

Galichon, Alfred, 641n4

Gates, Bill, 440–­441, 444–­445, 624nn14,20, 626n32

GDP, defined, 43

Generational warfare, 22, 246

Germany: national income and, 68–­69; inflation in, 107–­108, 142, 149, 545, 546;
capital in, 140–­146; foreign capital/assets and, 141–­142, 192, 596n25; public debt
in, 647n10, 142; growth and, 174; savings in, 177–­178; public wealth and, 184; between
the two wars, 324–­325; inheritances in, 425–­426, 427; taxation and, 476, 498–­500,
504–­505, 507

Giffen, Robert, 56–­57, 584n17

Gifts, inheritance flows and, 392–­393, 425–­427

Gilded Age, 348–­350, 506

Gilet, M., 582n34, 600n27

Gini coefficient, 243, 266–­267, 286, 603n22, 623n12

Global distribution of production, 59–­61; regional blocs and, 61–­64; in­e­qual­ity
and, 64–­69

Global in­e­qual­ity of wealth, 59–­69, 430–­467; return on capital and, 430–­432;
wealth rankings and, 432–­436; “Global Wealth Reports” and, 436–­439; divergence and,
438–­439, 463–­464; heirs and entrepreneurs and, 439–­443; moral hierarchy and, 443–­447;
university endowments and, 447–­452; inflation and, 452–­455; sovereign wealth funds
and, 455–­460; China and, 460–­463; rich and poor countries and, 465–­467; transparency
and, 518–­521

Globalization, first and second periods of, 28

Global tax on capital, 515–­539, 572–­573; as useful Utopia, 515–­518; banking information
and, 516, 521–­524; transparency and, 516, 518–­521; purpose of, 518, 520, 524–­527;
Eu­ro­pe­an wealth tax and, 527–­530; historical perspective on, 530–­534; regulation
and, 534–­536; petroleum rents and, 537–­538; immigration and, 538–­539; Eurozone
and, 560–­561;
vs.
corporate income taxes, 650n32

“Global Wealth Reports,” 436–­439

Godechot, Olivier, 605n22

Gold, 595n14

Golden rule of capital accumulation, 563–­565, 651–­652n40, 652n42; deficit debates
and, 565–­567

Goldin, Claudia, 306, 314–­315, 606n36, 608n12, 640n53

Goldsmith, Raymond, 19, 159, 597n33

Gold standard, 107, 547–­548, 589n28

Google, 650n33

Gordon, Robert, 94–­95, 586n35

Gotman, Anne, 622n62

Gourinchas, Pierre-­Olivier, 597n31, 645n41

Government and security ser­vice sector, 91

Government bonds: as capital, 114, 130–­133; public debt and, 544

Great Depression: faith in capitalism and, 136–­137; reduction in in­e­qual­ity and,
275; managers and, 285; in the United States, 293–­294, 506–­507; policy and, 473;
central banks in, 548–­549

Great Recession, 472–­474, 553–­554

Greece, debt crisis in, 542, 554, 649n26, 650n29

Grenelle Accords, 289

Growth, 72–­109; per capita output, 72–­74; population, 72–­75; law of cumulative,
74–­77; demographic, 77–­83, 587n4; equalization and, 83–­85; economic, 86–­87, 375,
588n11; purchasing power and, 87–­90; diversification of lifestyles and, 90–­93; end
of, 93–­95; implications of 1 percent, 95–­96; in postwar period, 96–­99; double bell
curve of global, 99–­102; inflation and, 102–­103; monetary systems and, 103–­109;
from 1970 to 2010, 173–­183; modern, 308; return on capital and, 351, 353–­361, 364–­366,
430–­431, 571–­572; wealth rankings and, 432–­436; social spending and, 481–­482.
See also
Slow growth

Grusky, David B., 639n48

Guesnerie, Roger, 654n52

Hacker, Jacob, 640n52

Harrison, Anne, 18, 343, 582n36

Harrod, Roy, 230–­231

Harvard University, 447–­450, 485, 626n30, 632n29, 632n32

Hayek, Friedrich, 654n56

Health and education ser­vice sector, 90–­92, 477, 482, 629n14

Health insurance, public, 477, 486, 629nn12,13

Heim, Bradley T., 607n42

Heirs in wealth rankings, 439–­443

Henry, James, 28n56

Hicks, John, 641n12

Higher education access, 485–­486

Historical sources, 10, 19–­20, 27–­30

Hoffman, P., 599n14

Hollande, François, 650n31

Homer, S., 613n16

Hoover, Herbert, 472–­473

House­hold surveys, 329–­330

Housing, as capital: in Britain and France, 117, 119–­120, 122–­123; in Germany, 141,
145; in America, 151, 155; rental value of, 209, 213; middle class and, 260

Human capital, 21–­22, 42, 46, 586–­587n35; convergence and, 70–­71; slavery and,
162–­163, 593n18; capital-­labor split, 223–­224, 234; transmission of, 420; accounting
and, 608n3

Hypermeritocratic society, 264–­265

Hyperpatrimonial society, 264

Ibiscus
(Tolstoy), 446–­447

Identity politics, 539

IMF (International Monetary Fund), 220, 465, 519, 534, 553–­554, 646n41

Immigration, 78, 82, 83–­84; redistribution through, 538–­539, 646n46

Incentive justification, 524, 526–­527

Income: per capita, 106, 122, 590n31, 590n31, 590–­591n8,9; disposable, 180–­182;
mixed, 204; from wages, 242; total, 254–­255, 263–­265; transfers of, 297–­298; earned
and unearned, 377–­379, 390, 507; replacement, 602n9.
See also
Capital, income from; Labor, income from; National income

Income and output: capital-­labor split and, 39–­43; capital and wealth and, 45–­50;
capital/income ratio and, 50–­52; laws of capitalism and, 52–­55; national accounting
and, 55–­59; global distribution of production and, 59–­61; regional blocs and, 61–­64;
convergence and, 69–­71

Income in­e­qual­ity, 15, 242–­243; compression of, 12–­13, 271–­275, 284–­286, 293–­294,
298; global, 61–­69; inherited wealth and, 238–­242; labor and capital and, 242–­246,
254–­255, 255–­260; order of magnitude of, 246–­250; class designations and, 250–­252;
deciles/centiles in mea­sur­ing of, 252–­255; total income and, 254–­255, 263–­265;
women and, 256; synthetic indices and, 266–­267; distribution tables and, 267, 269–­270;
official publications and, 267–­268.
See also
by country; In­e­qual­ity of capital own­ership; In­e­qual­ity of labor income

Income sources, 17–­18

Income tax, 494, 527; returns as source of data, 12, 16–­18, 281–­284, 292, 326, 328–­329;
twentieth century evolution of, 275, 292, 498–­502; exemptions and, 282; rise of progressive,
374; Great Depression and, 472; Obama administration and, 473

India: income in, 62–­64; growth in, 82, 329, 611n32; taxes in, 491, 492

“Indicial” tax system, 501

Individual distribution, 583n3