‘In his 2013 treatise Capital in the Twenty-First Century, Thomas Piketty argues that when the rate of return on capital, rrr, consistently exceeds the rate of economic growth, ggg, wealth inherits and accumulates faster than labor income can grow, inevitably leading to extreme concentrations of wealth.’
Explain the economic and structural factors that drive inequalities in the distribution of income and wealth in a developed economy such as the UK.
