Fried, Jesse, 611n35
Friedman, Milton, 548–549
Furet, François, 225, 575–576, 582n34
Gabaix, Xavier, 639n47
Gadenne, Lucie, 633n48
Galichon, Alfred, 641n4
Gates, Bill, 440–441, 444–445, 624nn14,20, 626n32
GDP, defined, 43
Generational warfare, 22, 246
Germany: national income and, 68–69; inflation in, 107–108, 142, 149, 545, 546; capital in, 140–146; foreign capital/assets and, 141–142, 192, 596n25; public debt in, 647n10, 142; growth and, 174; savings in, 177–178; public wealth and, 184; between the two wars, 324–325; inheritances in, 425–426, 427; taxation and, 476, 498–500, 504–505, 507
Giffen, Robert, 56–57, 584n17
Gifts, inheritance flows and, 392–393, 425–427
Gilded Age, 348–350, 506
Gilet, M., 582n34, 600n27
Gini coefficient, 243, 266–267, 286, 603n22, 623n12
Global distribution of production, 59–61; regional blocs and, 61–64; inequality and, 64–69
Global inequality of wealth, 59–69, 430–467; return on capital and, 430–432; wealth rankings and, 432–436; “Global Wealth Reports” and, 436–439; divergence and, 438–439, 463–464; heirs and entrepreneurs and, 439–443; moral hierarchy and, 443–447; university endowments and, 447–452; inflation and, 452–455; sovereign wealth funds and, 455–460; China and, 460–463; rich and poor countries and, 465–467; transparency and, 518–521
Globalization, first and second periods of, 28
Global tax on capital, 515–539, 572–573; as useful Utopia, 515–518; banking information and, 516, 521–524; transparency and, 516, 518–521; purpose of, 518, 520, 524–527; European wealth tax and, 527–530; historical perspective on, 530–534; regulation and, 534–536; petroleum rents and, 537–538; immigration and, 538–539; Eurozone and, 560–561; vs. corporate income taxes, 650n32
“Global Wealth Reports,” 436–439
Godechot, Olivier, 605n22
Gold, 595n14
Golden rule of capital accumulation, 563–565, 651–652n40, 652n42; deficit debates and, 565–567
Goldin, Claudia, 306, 314–315, 606n36, 608n12, 640n53
Goldsmith, Raymond, 19, 159, 597n33
Gold standard, 107, 547–548, 589n28
Google, 650n33
Gordon, Robert, 94–95, 586n35
Gotman, Anne, 622n62
Gourinchas, Pierre-Olivier, 597n31, 645n41
Government and security service sector, 91
Government bonds: as capital, 114, 130–133; public debt and, 544
Great Depression: faith in capitalism and, 136–137; reduction in inequality and, 275; managers and, 285; in the United States, 293–294, 506–507; policy and, 473; central banks in, 548–549
Great Recession, 472–474, 553–554
Greece, debt crisis in, 542, 554, 649n26, 650n29
Grenelle Accords, 289
Growth, 72–109; per capita output, 72–74; population, 72–75; law of cumulative, 74–77; demographic, 77–83, 587n4; equalization and, 83–85; economic, 86–87, 375, 588n11; purchasing power and, 87–90; diversification of lifestyles and, 90–93; end of, 93–95; implications of 1 percent, 95–96; in postwar period, 96–99; double bell curve of global, 99–102; inflation and, 102–103; monetary systems and, 103–109; from 1970 to 2010, 173–183; modern, 308; return on capital and, 351, 353–361, 364–366, 430–431, 571–572; wealth rankings and, 432–436; social spending and, 481–482. See also Slow growth
Grusky, David B., 639n48
Guesnerie, Roger, 654n52
Hacker, Jacob, 640n52
Harrison, Anne, 18, 343, 582n36
Harrod, Roy, 230–231
Harvard University, 447–450, 485, 626n30, 632n29, 632n32
Hayek, Friedrich, 654n56
Health and education service sector, 90–92, 477, 482, 629n14
Health insurance, public, 477, 486, 629nn12,13
Heim, Bradley T., 607n42
Heirs in wealth rankings, 439–443
Henry, James, 28n56
Hicks, John, 641n12
Higher education access, 485–486
Historical sources, 10, 19–20, 27–30
Hoffman, P., 599n14
Hollande, François, 650n31
Hoover, Herbert, 472–473
Household surveys, 329–330
Housing, as capital: in Britain and France, 117, 119–120, 122–123; in Germany, 141, 145; in America, 151, 155; rental value of, 209, 213; middle class and, 260
Human capital, 21–22, 42, 46, 586–587n35; convergence and, 70–71; slavery and, 162–163, 593n18; capital-labor split, 223–224, 234; transmission of, 420; accounting and, 608n3
Hypermeritocratic society, 264–265
Hyperpatrimonial society, 264
Ibiscus (Tolstoy), 446–447
Identity politics, 539
IMF (International Monetary Fund), 220, 465, 519, 534, 553–554, 646n41
Immigration, 78, 82, 83–84; redistribution through, 538–539, 646n46
Incentive justification, 524, 526–527
Income: per capita, 106, 122, 590n31, 590n31, 590–591n8,9; disposable, 180–182; mixed, 204; from wages, 242; total, 254–255, 263–265; transfers of, 297–298; earned and unearned, 377–379, 390, 507; replacement, 602n9. See also Capital, income from; Labor, income from; National income
Income and output: capital-labor split and, 39–43; capital and wealth and, 45–50; capital/income ratio and, 50–52; laws of capitalism and, 52–55; national accounting and, 55–59; global distribution of production and, 59–61; regional blocs and, 61–64; convergence and, 69–71
Income inequality, 15, 242–243; compression of, 12–13, 271–275, 284–286, 293–294, 298; global, 61–69; inherited wealth and, 238–242; labor and capital and, 242–246, 254–255, 255–260; order of magnitude of, 246–250; class designations and, 250–252; deciles/centiles in measuring of, 252–255; total income and, 254–255, 263–265; women and, 256; synthetic indices and, 266–267; distribution tables and, 267, 269–270; official publications and, 267–268. See also by country; Inequality of capital ownership; Inequality of labor income
Income sources, 17–18
Income tax, 494, 527; returns as source of data, 12, 16–18, 281–284, 292, 326, 328–329; twentieth century evolution of, 275, 292, 498–502; exemptions and, 282; rise of progressive, 374; Great Depression and, 472; Obama administration and, 473
India: income in, 62–64; growth in, 82, 329, 611n32; taxes in, 491, 492
“Indicial” tax system, 501
Individual distribution, 583n3
Industrial Revolution, 3, 10, 59–61; world growth since, 73–74, 79, 87–89
Inequality: subjective dimension of, 2; political nature of, 20; natural, 85. See also Convergence; Divergence; Global inequality of wealth; Income inequality
Inequality, concentration and, 237–270; work vs. inheritance and, 238–242; labor vs. capital, 242–246, 254, 255–260; orders of magnitude of, 246–250; class designations and, 250–252; deciles/centiles in measuring of, 252–255; total income and, 254, 263–265; patrimonial middle class and, 260–262; justification of, 264; synthetic indices and, 266–267; distribution tables and, 267, 269–270; official publications and, 267–269
Inequality, evolution of, 271–303; twentieth century French reduction of, 271–274; chaotic political history and, 274–276; rentiers to managers and, 276–278; top decile and, 278–281; income tax returns and, 281–284; interwar years and, 284–286; cla
sh of temporalities and, 286–290; increases in post 1980s France of, 290–291; in the United States, 291–303; financial crisis and, 297–298; supersalaries and, 298–300; upper centile and, 300–303
Inequality, structures of, 19, 77, 83, 234, 237–238; patrimonial society and, 260–262, 264, 346–347, 373, 411–414; hypermeritocratic society and, 264–265; social tables and, 270; taxation and, 373–374, 495; change in global, 377–378; “natural,” 411
Inequality of capital ownership, 238–244, 254, 300–303, 336–376; return of capital and growth rate and, 264, 353–361; decline of hyperconcentrated wealth and, 336–337, 350, 368–372, 611–612n3; estate taxes and measurement of, 337–339; Belle Époque Europe and, 339, 342–345, 369–370, 372; wealth distribution and, 339–343; patrimonial society and, 346–347; in the United States, 347–350; mechanism of wealth divergence and, 350–353; time preference and, 358–361; equilibrium distribution and, 361–364; Civil Code and French Revolution and, 362–366; Pareto law and, 366–368; failure to return to past levels of, 368–375; in the twenty-first century, 375–376. See also Global inequality of wealth; Inheritance, dynamics of
Inequality of labor income, 238–244, 254, 263, 300, 304–335; in twenty-first century, 277–278; top decile and, 279–281, 290–293, 295–299; in the United States, 291–296, 314–315; supersalaries and, 298–300; wages and, 304–307, 310–313; marginal productivity and, 304–308, 311, 314–315, 330–333; role of institutions and, 307–310; supermanagers and, 315–321, 333–335; Europe and, 321–325, 609n16; emerging economies and, 326–330
Infinite accumulation principle, 7–11, 228
“Infinite horizon” model, 360, 613nn18–19
Inflation: and growth, 102–103; French Revolution and, 104; twentieth century, 106–109, 142, 149; redistribution via, 133–134; assets and, 210–212, 599n13; return on capital and, 452–455; public debt and, 541, 544–547, 648nn13,17
Inheritance, dynamics of, 377–429; flows and, 379–382; three forces in, 383–385; life expectancy and, 385–390; age-wealth profile and, 390–396; impact of war on, 396–398; in the twenty-first century, 398–401, 418–421, 610nn32,34; stock of inherited wealth and, 401–404; Vautrin’s lecture and, 404–406; Rastignac’s dilemma and, 407–409; rentiers and managers and, 410–411, 418–424; patrimonial society and, 411–414, 619nn36–37; as condition of civilization, 415–416; meritocratic model and, 416–420; global and European, 424–429
Inheritance society, 351–353
Inherited wealth, 18–19, 26, 29; demographics and, 83–84; income from, 238–242, 246; sharp decrease in, 262; renewed importance of, 290; return on capital and, 351–353; taxation and, 493, 497, 502–503, 508, 525–526, 637–638n32
Intellectual property, 49
Interdecile ratios, 267–269, 603nn23,24
Interest, efforts to prohibit, 530–531
Interest rates, 52–53, 210, 584n15, 589n10
Intergenerational mobility, 420, 484, 631nn26,27
Intergenerational warfare, 246
International Comparison Program (ICP), 64
International divergence, 463–465
International Monetary Fund. See IMF (International Monetary Fund)
Internet bubble, 172
Investments: inequality of, 430–432, 452–455; wealth rankings and, 432–443; university endowments and, 447–452; alternative, 449–450, 454, 456; petroleum and, 455–460, 462; sovereign wealth funds and, 455–460
Iraq, 537–538
Italy: growth rate of, 174, 445; savings in, 177–178, 185; public wealth in, 184–185; wealth tax in, 528–529, 533
Ivanishvili, Bidzina, 625n22
James, Henry, fiction of, 152, 414
Jantt, Markus, 631n28
Japan: national income and, 63–64, 66, 68; growth in, 86, 93, 95, 174–176, 588n10; savings in, 177–178; foreign assets in, 192–194; capital/income ratio in, 195; inequality in, 322, 445; taxation and, 490, 498, 637n31
Japanese bubble, 172, 597n30
Jeanne, Olivier, 645n41
Jefferson, Thomas, 158, 363
Jobs, Steve, 440–441
Joint stock companies, 203
Jones, Alice Hanson, 159, 347
Jones, Charles I., 586n35
Judet de la Combe, P., 644n30
Judicial conservatism, 566, 653n49
Justification of inequality, 264
Kaldor, Nicholas, 231, 601n36, 634n1,
638n35
Kaplan, Steven N., 607n41
Katz, Lawrence, 306, 314–315, 608n12,
640n53
Kennickell, Arthur, 347
Kesztenbaum, Lionel, 612n4
Keynes, John Maynard, 135, 220, 231–232, 600n22, 652n44
King, Gregory, 56, 180, 590n1, 637n28
King, Willford, 348, 506, 613n13
Knowledge and skill diffusion, 21, 71, 313
Kopczuk, Wojciech, 607n38
Kotlikoff-Summers thesis, 428, 622n63
Krueger, Alan, 313, 608n10
Krugman, Paul, 294
Kubrick, Stanley, 620n40
Kuczynski, Jürgen, 219–220, 599n20
Kumhof, Michael, 606n32
Kuwait, 537
Kuznets, Simon, 11–17, 20, 23, 580nn9,11,14, 581nn15–16, 582n36, 603n4
Kuznets Curve, 13–15, 237, 274, 336, 580n14
Labor. See Capital-labor split
Labor, income from, 18, 21, 53. See also Inequality of labor income
Labrousse, Ernest, 582n34, 600n28
Lagardère, Arnaud, 445
Laissez faire doctrine, 136
Lamont, Michèle, 417–418, 621n49
Lampman, Robert, 18, 582n27
Land: price of, 5–6, 151; rate of return on, 53–54, 613n16; accounting and, 56; values, capital/income ratio and, 196–198, 596n33
Land, as capital, 47, 644n31; in Britain and France, 114, 117–119, 122–123; in Germany, 141; in America, 150–151, 155; rural vs. urban, 197–198
Landais, Camille, 605n20, 626n34, 634n4
Landier, Augustin, 639n47
Landowners, Ricardo and, 5–6
Latin America, 62–63, 195, 491
Laval, Pierre, 285
Lavoisier, Antoine, 56
Law of cumulative growth, 74–77
Law of cumulative returns, 75, 77
Laws of capitalism: first fundamental, 52–55; second fundamental, 55, 166–170
Lebeaupin, A., 605n20
Le Bras, Hervé, 587n5, 589n20
Lefranc, Arnaud, 631n26
Le mouvement du profit en France au 19e siècle (Bouvier, Furet, and Gillet), 575, 576, 582n34, 600n27
Leroy-Beaulieu, Paul, 30, 417, 503–504, 506, 636nn20,21,22, 637n28
Le Van, L., 591n18
Levasseur, Pierre Emile, 617n10
Liberalization, economic, 98–99, 138–139, 492
“Life-cycle theory of wealth,” 384, 391–392, 428
Life expectancy, inheritance and, 385–390, 400
Limited liability corporations, 203
Linder, Peter, 343
Lindert, P., 603n26, 628n3
Liquidity, 472, 548, 551
Lonmin, Inc., 39–40, 570
L’Oréal, 440, 624n15
Lower class, 250–251
Low growth. See Slow growth
Lyndon, Barry, 620n40
Maastricht Treaty, 556, 565–566
Maddison, Angus, 28, 59, 66, 74, 585nn20–21, 586n30, 588n10
Mad Men (TV series), 156
Mahfouz, Naguib, 109
Malinvaud, Edmond, 651n40
Mallet, B., 612n7
Malthus, Thomas, 4–5, 579n1, 580n8
Managers: super, 265, 291, 302–303,
315–321, 333–335; society of, 276–279, 373; Great Depression and, 285; compensation of, 331–335, 505–512, 639n47; basic arithmetic of, 410–411
Mansfield Park (Austen), 115, 120–121, 207
Marginal productivity: of capital, 69; theory of, 304–308, 311, 314–315, 330–335; top marginal tax rates and, 509–512
Margo, R., 606n36
Marikana tragedy, 39–40, 68, 583n2
Market(s): imperfections of, 27m 312, 423–424; financial, 49, 58, 476; perfect capital, 214; collective decisions and, 569, 654n56
Market vs. book value, 189–191
Marx, Karl, 5, 7–11, 27, 531, 565, 579n4, 580nn6,78; falling rate of profit and, 52, 227–230, 600n33; public debt and, 131–132
Marxists, 52, 219, 576, 655n2
Masson, André, 633n43
McGovern, George, 638n33
Meade, James, 582n36, 638n35
Meer, Jonathan, 632n31
Meritocratic model: challenge to, 21, 26–27; extremism and, 334, 416–418, 620n46; belief and hope in, 419–422; education and, 485–487
Middle class, 250–251; patrimonial, 260–262, 346–347, 350
Middle East, 537–538
Milanovic, Branko, 585n20, 603n26
Military expenditures, 628n2
Mill, John Stuart, 638n35
Minimum wage, 308–313, 608n5, 608nn5,6,7,8,9,10
Mittal, Lakshmi, 445, 625n21
Mixed economies, 136–137, 140, 483
Mixed incomes, 204
Mobility: social, 84–85, 484–487; wage, 299–300
Modigliani, Franco, 232, 245, 384, 391, 396, 400, 428, 601n36, 621n55, 622n63
Monetary History of the: United States (Friedman and Schwartz), 548–549
Monetary policy, 548–553
Monetary systems: stability of, 103–105; growth and, 103–109; in France, 104, 589n27, 590n29; in Britain, 105, 589–590nn28,29; in Eurozone, 108; confidence in US dollar and, 156; in Eurozone, 544–545, 554–562, 565–567, 653n47
Money: meaning of, in literature, 105–106, 109; twentieth century inflation and, 106–109; gold standard and, 107, 547–548, 589n28
Monopoly, 214, 444
Monopsony, 214, 312, 608n10
Moral hierarchy of wealth, 443–447
Mortality, differential, 617n15
Mortality multiplier, 612n7
Mortality rate, 383–388