[misja]

Nice article but I don't think this part of the conclusion is correct:

'Wealth, in Piketty’s view, perpetuates itself, and effortlessly earns its return (never mind the work, risk and selection issues involved). By continually paying the interest on its debt, the governments of Austen’s Britain financed the leisurly lifestyles of the rich, just as the “natural” return of the modern-day rich contribute and maintain today’s inequality.'

This completely disregards inflation. E.g., if government bonds guarantee a 3% payout but inflation is at 3.5%, your wealth is not perpetuating but leaking away.

[orkon]

I think I have read somewhere that inflation in the end of the 17th - first half of 18th century was almost zero or there was even a deflation. I may be wrong. Maybe someone has a good source?

[dtjohnnyb]

The book mentioned in the article, Capital in the 21st Century, shows this in really interesting detail. I can't remember the details myself, but the idea we have of inflation being normal is actually highly abnormal in the history of humanity. Can't recommend the book enough, really interesting to see how unique the last 100 years of high growth is compared to history due to the world wars and how we may be returning to "normal" levels of inequality.

[orkon]

Yes, it was from this book I believe. Also found this http://researchbriefings.files.parliament.uk/documents/RP03-... where it seems like retail prices where relatively stable at that time.

[TMWNN]

I've read that from the early 1600s to World War I England had net zero inflation.