There Are Four r’s

When I look at Thomas Piketty’s big book, I see one thing that he failed to do that I think he really should have done. A large part of the book is about the contrast between “r”, the rate of return on wealth, and “g” the growth rate of the economy. However, there are four different r’s. And in his book he failed to distinguish between them.

The four different r’s are:

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What Does This Neoclassical Economist Say? Build a Mathematical Model

When a conventional American post-World War II neoclassical economist–somebody, that is, like me–tries to make analytical sense of Piketty’s big book, he says:

Ring-ding-ding-ding-dingeringeding!

No, that’s not it… He says something like:

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