Scott Alexander reviews Piketty's 'Capital in the Twenty-First Century', finding its analysis of long-term economic trends and inequality compelling but pessimistic about proposed solutions. Longer summary

Scott Alexander reviews Thomas Piketty's 'Capital in the Twenty-First Century', a book on inequality and macroeconomic history. The review covers Piketty's key arguments about economic growth, the rise and fall of rentiers, and increasing inequality. Scott finds Piketty's data and analysis compelling, particularly the idea that normal economic growth is always 1-1.5% per year and that the rate of return on capital tends to exceed economic growth, leading to increasing inequality over time. The review discusses potential solutions like wealth taxes, but is pessimistic about their implementation. It ends on some cautiously optimistic notes about global inequality reduction and the scientific nature of Piketty's approach. Shorter summary