Book vs. market value, 189–191
Borgerhoff Mulder, Monique, 597n33
Bourdieu, Jérôme, 612nn4,9
Bourdieu, Pierre, 486
Bourguignon, François, 585n20
Boutmy, Emile, 487
Bouvier, Jean, 225, 582n34
Bowley, Arthur, 219, 599nn19, 20
Bozio, Antoine, 633n46
Brady, H., 640n52
Britain: data from, 28, 56–57; national income and, 68–69; growth in, 98–99, 174–175, 510–511; monetary system of, 105, 589–590nn28,29; per capita income in, 106, 122, 590–591n8,9; inflation in, 107, 133, 142, 149; capital in, 116–127, 148–149; foreign capital/assets and, 117–119, 148, 191–192, 590n7; public debt of, 124–126, 127, 129–131, 133, 591n10, 591n12; public assets in, 136, 138; Canada and, 157–158; savings in, 177–178; capital-labor split in, 200–201, 204, 205, 206–208, 216, 224–225, 229; taxation and, 338, 498–499, 501, 505, 507–512, 636n16, 638nn33,34,35; wealth distribution in, 343–344, 346; inheritances in, 426–427; taxes as share of national income in, 475–476, 629n6; social state in, 477–478, 629n12, 631n25
Brown, Frederick, 219–220
Bubbles, 172, 193, 596n27, 597n30; beyond, 173–183
Buffet, Warren, 624n14
Bush, George W., 309
Cagé, Julia, 633n48
Caillaux, Joseph, 637n24
Campion, H., 591n19
Canada, 66; in US-Canada bloc, 62–63; capital in, 140, 157–158; foreign capital/assets in, 157–158; growth rate of, 174; savings in, 177–178
“Capabilities” approach, 480
Capital: human and nonhuman, 21–22, 42, 46–47; types of, 42, 46; depreciation and, 43–44; defined, 45–47, 123; private vs. public, 46–47; and wealth, 47–50; economic functions of, 48; domestic vs. foreign, 49, 118–119; immaterial, 49; residential vs. productive, 51–52; rents and, 423–424; reproduction of itself, 440. See also Foreign capital/assets; National wealth/capital; Private wealth/capital; Public wealth/capital; Rate of return on capital
Capital (Marx), 9, 225, 229
Capital, income from, 18, 21, 53; reduction in, 271–275, 336–337; in twenty-first century, 277–278, 301–302; top decile and, 279–281, 290, 295, 301, 604–605n12; underestimation of, 281–284, 294, 606n26; taxation on, 507–508. See also Inequality of capital ownership
Capital, metamorphoses of: nature of wealth and, 113–116; in Britain and France, 113–139; asset structure (private) and, 116–120, 122–123; foreign capital and, 120–123; public and private wealth and, 123–129; public debt and, 129–134; Ricardian equivalence and, 134–135; public assets and, 135–139; in Germany, 140–146; twentieth century shocks and, 146–150; in the United States, 150–156, 158–163; in Canada, 157–158
Capital accumulation, golden rule of, 563–567
Capital controls, 515–516, 534–536
Capital gains: treatment of, 283, 295, 609n13; United States and, 293, 295, 296
Capital/income ratio, 19, 25–26, 164–199; evolution of, 42; defined, 50–52; fundamental laws of capitalism and, 52–55, 166–170; in Britain and France, 117–118, 126; collapse and recovery of, 146–150, 275; in the United States, 150–155; capital’s comeback and, 170–173, 290; beyond bubbles and, 173–183; privatization and, 183–187; rebound of asset prices and, 187–191; national capital and net foreign assets and, 191–194; land values and, 196–198; capital-labor split and, 199–203, 232–233; falling rate of profit and, 229; flow of inheritances and, 383–384; world, 460–461
Capitalism, 1; misery of, 7–8, 446–447; Marx on, 7–11, 227–230, 565; author’s view of, 31; first fundamental law of, 52–55, 199; second fundamental law of, 55, 166–170; financial, 58, 515; key aspects of, 116–118; without capitalists, 135–139; Rhenish, 140–146, 191, 511; patrimonial, 154–155, 173, 237, 471; illusion of end of, 350, 381, 397; crisis of 2008 and, 472–474; control of, 518, 523, 532–537, 562, 570; central contradiction of, 571–573
Capital-labor split, 8, 39–45, 199–234; capital/income ratio and, 199–203, 232–233; return on capital and, 199–217; flows and, 203–204; real and nominal assets and, 209–212; marginal productivity of capital and, 212–217; elasticity of substitution and, 216–224; stability of, 217–220, 231–232; human capital and, 223–224; medium-term changes in, 224–227, 288; falling rate of profit and, 227–230; “two Cambridges” and, 230–232; capital’s comeback and, 232–233, 290–291; technology and, 234
Capital stock, 50–51, 113, 119; first fundamental law of capitalism and, 52–55, 199; accumulation of, 166–170; too much, 212, 215–217, 223, 227–230; inherited wealth and, 401–404, 410
Capital tax. See Global tax on capital; Taxation, on capital
Carbon tax, 654n55
Carpentier, Vincent, 632n34
Card, David, 313, 608n10
Castel, Robert, 608n9
Categorical or schedular tax, 501
Centile, upper/top, 251, 252–254, 259–264, 267, 301; in twentieth century, 272, 275, 284–286; in twenty-first century, 277–278; world of, 278–281; underestimation of, 281–284; wages and, 290–292, 296, 298–300, 314–315, 618n29; cohabitation in, 300–303; evolution of by country and region, 315–322, 326–327, 329, 609–610nn13,14,15,16,17,18,19, 610nn22,23,25; wealth distribution and, 339–346, 348–349, 365–366, 438–439, 509, 643n25; work vs. inheritance and, 408–411; return on capital and, 431; oligarchic divergence and, 463; taxation and, 496
Centiles, measurement and, 252–255, 269–270, 286
Central banks, 472–473, 648n20, 649n22; Cyprus crisis and, 519, 553–556; financial stability and, 547–553, 555–556
César Birotteau (Balzac), 115, 207, 214, 412–413
Chabert, A., 600n29
Challenges wealth rankings, 442, 624n18
Charles X, 613n21
Chavagneux, Christian, 628n56
China: income and, 62–64, 66; growth in, 82, 99, 329, 429; income inequality in, 326–327, 610n27, 646n42; assets of, 463, 627–628n50; taxes in, 491, 492; regulation in, 535–536
Civil Code, 362–366, 614n23
Clark, Gregory, 591n15
Class designations, 250–252
Climate change, 567–569
Clinton, Bill, 309
Cobb, Charles, 599n18
Cobb-Douglas production function, 217–220, 599n17, 600n25
Cole, Adam, 607n42
Colonial empires, 120–121
Colonial era, 44–45
Colqhoun, Patrick, 230
Colson, Clément, 57, 591n19, 617n10
Columbia, 327, 329
“Common utility,” 480, 630n20
Communist Manifesto, The (Marx), 8–9, 225
Communist movements, 8, 10
Competition: pure and perfect, 30, 212, 214, 312–313, 332, 639–640n48; fiscal, 208, 221, 355–356, 373, 375, 422, 496, 562; inheritance and unrestricted, 423–424
Concentration effects vs. volume effects, 410
Condorcet, marquis de, 363, 654n56
Confiscatory tax rates, 473; executive income and, 505–508; fiscal progressivity and, 512–514
Conservative revolution, 98, 138–139, 333, 511, 549
Consumption taxes, 494, 496, 651n37
Continental blocs, 59–61, 68
Contributive justification, 524–525
Convergence, 21–22, 27, 571; forces favoring, 69–71; global, 72
Corporations, 156, 203, 332; taxation on profits of, 560–561, 650–651n33, 651n36
Creative accounting, 214
Crédit Suisse, 437, 623n10
Cross-investments, 194
Crouzet, François, 591n11
Cumulative growth
, law of, 74–77
Cumulative returns, law of, 75, 77
Cyprus banking crisis, 519, 553–556
Damages (TV series), 419
Data: importance of, 2–3; national income as, 11–13, 56–59, 584n18; on income, 16–17; on wealth, 17–20; geographical and historical boundaries of, 27–30; developing countries and, 58–59
Daumond, Adeline, 582n33
Davies, James B., 638n8
Debreu, Claude, 654n56
Debt. See Public debt
Decile, upper/top, 251–253, 256–260, 261–264; in twentieth century, 271–273, 275–276, 284–286, 288; world of, 278–281; underestimation of, 281–284, 294–295; wages and, 290–294, 296–299, 314–315; wealth distribution and, 322–324, 339–346, 348–349, 365–366, 438–439; return on capital and, 431
Deciles, measurement and, 251–255, 601n5, 602n20; interdecile ratios and, 267–269, 603nn23,24
Declaration of Independence (US) (1776), 479
Declaration of the Rights of Man and the Citizen (1789), 479–480
Defensive nationalism, 539
Deflation, 285
De Foville, Alfred, 57, 617n10
De Gaulle, Charles, 289
Delalande, Nicolas, 635n13
Dell, Fabien, 17, 615n38, 645n37
Democracy: challenge to, 21, 26–27; rentiers and, 422–424; transparency and, 518–521; control of capital and, 569–570, 573
Demographic growth, 72–75, 174; stages of, 77–80; negative, 80–83; bell curve of global, 99, 589n24; decreased, 166–168
Demographic transition, 3–4, 29–30, 78–79, 81–82
Denmark, 495
Depreciation, 43, 178
Deregulation movement, 138–139
Di Bartolomeo, G., 637n26
“Difference principle” (Rawls), 480
Dirty Sexy Money (TV series), 419
Disposable income, 180–182
Distribution, equilibrium, 361–366
Distribution of wealth: factorial vs. individual, 40, 583n3; national accounting and, 55–59; global, 59–69; regional blocs and, 61–64; upper centiles and deciles and, 322–324, 339–346, 348–349, 365–366; in France, 337–343, 346, 364–366; in Britain, 343–344, 346; in Europe, 343–345, 350; in Sweden, 344–345, 346–347; in the United States, 347–350; return on capital and unequal, 361, 571–572. See also Global inequality of wealth; Inheritance, dynamics of
Distribution of wealth debate: data and, 2–3, 11–13, 16–19, 27–30; classical political economy and, 3–5; scarcity principle and, 5–7; infinite accumulation principle and, 7–11; postwar optimism and, 11–15; in economic analysis, 15–16; historical sources and, 19–20; results of current study in, 20–22; forces of convergence and divergence and, 22–27; theoretical and conceptual framework and, 30–33
Distribution tables, 267, 269–270
Divergence, 22–27, 424, 571; Europe and North America and, 59–61; supermanagers and, 333–335; mechanism of wealth, 350–353, 431; global, 438–439, 461–463; oligarchic, 463–465, 627n49
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; by = μ × m × β, 383; r = g, 563; α = s and α > s, 563–564
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
Finan
cial 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