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The r > g thing is cool in theory but it has an obvious flaw. As inequality rises returns go down. Interest rates have hit rock bottom rates.

You have to explain how returns can exceed economic growth. Your returns have to be earned through coercion basically, the other party can't refuse. Overpriced stocks just result in lower yields. I can only think of real estate as something that is earning a fixed return through coercion. The other thing would be money if the fed forcibly raised interest rates but interest is already zero.

> This is a bad take because if that dollar does not transact, you do not get inflation but you get a lowered velocity.

> However a lowered velocity rises r - g. This exacerbates wealth inequality.

The cantillion effect:

https://en.m.wikipedia.org/wiki/Richard_Cantillon#Monetary_t...

Sounds to me like the Fed has spent the last fifty years dumping velocity then.