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by dojomouse 4437 days ago
I think you've reversed r and g vs ops notation, but yes, agreed. R can exceed g with no trouble, right up to the point where all economic growth is directly absorbed by capital accumulation (or whatever terminology you want to use for piping an annual measure into a cumulative one) at which time g must equal r... a fact of small comfort to the millions of people who, empirically, are getting a tiny slice of pie to live off. At this point volatility may well rear up and change the returns to owners of capital in the form of a revolution (as has happened again and again and again), but that's hardly an ideal form of society. You'd think if we know the mechanism and the result we could implement a fix. On the other hand, if you'd been paying any attention at all to climate change mitigation actions you'd probably be unsurprised that we haven't.