[JumpCrisscross]

> is an ultra simplistic formula

No shit. What gave it away, the two terms or the inequality? :)

Joking aside, it's simplistic because it's elementary. If real returns exceed real growth, ceteris paribus, you have a net flow of principal (so to speak) from labour to capital. That doesn't mean one can conclude the argument with those two variables alone. But it's a valid starting point, and concludes with many solutions other than increasing taxes to reduce r.

[twoodfin]

Why is reducing “r” desirable? Why not try to raise “g” instead?

[tehjoker]

Inequality is a social poison all on its own. For example, democracy is meaningless when men of means can buy elections.

[amanaplanacanal]

And we have many historical examples of it leading to eventual mob violence.