42. Government debt nets to zero because it is an asset to private sector (this mirrors the philosophy of Modern Monetary Theory). -- page 118. But not all debt is actually sovereign and Piketty misses that.
43. Piketty finally acknowledges that "housing" can be broken down into land + actual houses -- page 119
44. National Capital = farmland + housing + other domestic capital + net foreign capital -- page 119
45. French and British rents transferred abroad -- pages 120-121
46. Capital is defined as difference between what one owns vs. what one owes, but Piketty does not project out to future ownings and future debt where the ratio might change -- page 123
47. Sovereign wealth funds have arisen to manage sovereign wealth. This disproves Piketty's earlier contention that governments are essentially without assets because debts balance out assets and net to zero - page 124
48. France paid debt by inflating it away or defaulting on 2/3 of it during revolution in 1790 -- page 130. Is this a lesson for Greece and others today? Countries aren't allowed to "reset" so easily anymore.
49. Public and private debts grew to unprecedented levels in early 19th century. Bonds replaced land as income -- page 130
50. 19th century France paid more in interest on bonds than on education -- page 132. Taxes went in large part to bond holders.
51. Landlord wealth is only 3 times national wealth in the U.S. vs. 7 times in the U.K.
52. Slavery was added to wealth and increased 10 times from 1770-1860 according to census -- page 158. This amounted to 40% of the South's wealth in 1860.
53. Is Piketty's capital/income the best measure of national inequality? It doesn't account for large individual discrepancies in capital/income ratios. -- page 166
54. Capital accrues faster to wealthy people in a slower growing economy. Faster growing economies will have less savings but more opportunities -- page 167.
55. Second fundamental Law of Capitalism: -'= s/g Formula: capital/income = -' Savings rate = s; growth rate = g. "If s = 12% and g = 2%, then -' = s/g = 600%...meaning in the long run a country will have accumulated 6 years of national income as capital. Piketty says this formula does not work if natural resources are included -- page 169. Georgists say natural resources SHOULD be included!
56. -' = s/g also does not work if asset prices grown faster than consumer prices -- page 169.
57. The formula also does not account for shocks like world wars.
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