capitalists in the 21st century
> Have passive rentiers replaced the working rich at the top of the U.S. income distribution? Using administrative data linking 10 million firms to their owners, this paper shows that private business owners who actively manage their firms are key for top income inequality. Private business income accounts for most of the rise of top incomes since 2000 and the majority of top earners receive private business income—most of which accrues to active owner-managers of mid-market firms in relatively skill-intensive and unconcentrated industries. Profit falls substantially after premature owner deaths. Top-owned firms are twice as profitable per worker as other firms despite similar risk, and rising profitability without rising scale explains most of their profit growth. Together, these facts indicate that the working rich remain central to rising top incomes in the twenty-first century.
November 13th, 2017 2:32pm
"private business owners who actively manage their firms are key for top income inequality"
Since income equality is such an important societal goal and effective well managed firms are shown by science to be the key factor in creating inequality, it does seem to follow that destroying entrepreneurship, initiative, hard work and vision is what is needed to Make America Equal.
And that plan is currently being rolled out.
November 13th, 2017 9:02pm
Competence and contributing value to society leads to wealth and success.
This is wrong.
These people who do this are evil and must be stopped.
November 13th, 2017 9:04pm
The article actually seems to make this argument. Well run effective companies that contribute value are bad.
November 13th, 2017 9:05pm
"What struck me, looking at what Keynes wrote, were his remarks on interest rates and the return to capital: low rates of interest, he suggested, would mean the euthanasia of the rentier, and, consequently, the euthanasia of the cumulative oppressive power of the capitalist to exploit the scarcity-value of capital."
November 13th, 2017 9:10pm
Didn't work, Mr Krugman.
November 14th, 2017 3:12am
Yeah, he knows that. He’s quoting Keynes then discussing how the situation actually played out in current circumstance.
November 14th, 2017 3:56am