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Alpha equals r times beta explains capital income, Matt Darling notes
Matt Darling comments on economic theory, highlighting that the "fundamental law of capitalism" is represented by the formula "alpha equals r times beta," where the share of capital income equals the growth in capital times the capital income ratio.
Darling adds that the commonly cited "r greater than g" is not an economic law, but a contingent historical phenomenon that holds true only in certain periods.
Darling previously asserted the internet bubble supported Krugman's view, stating that predictions about overvalued internet stocks proved accurate. He also contrasted the U.K.'s furlough programs with the U.S. response, arguing that increased unemployment insurance during Covid in the U.S. was vindicated. His commentary often addresses differing outcomes in major economic approaches.
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