GROWTHADVANCED◉ LIVE LAB
Capital Share (r > g)
When returns on capital outrun growth, wealth concentrates without any villain.
How it works
- If r (return on capital) exceeds g (growth), fortunes outrun wages.
- Inheritance then compounds the gap across generations.
- Shocks (wars, inflation) reset it — policy can mimic the reset.
Use → Tax and redistribution design; pair with mobility data.
Watch out → Reading a low-g decade as proof the gap must explode — taxes move r.
Try it → Set r = 5% and g = 2% in the lab and watch the wedge over 40 years.
REDCAPE jobs → Explain · Act
Free sources → Coursera M4 (Economic Growth)
INTERACTIVE LABoriginal recreation — poke it
CAPITAL ×
7.0
WEDGE (r/g)
3.19×
Small rate gaps become large wedges — compounding does the concentrating, no villain required.
Attach to a lattice — combines with
Different families, shared jobs. Disagreement between them is where insight lives.
DIFFUSION
SIR Contagion
Susceptible–Infected–Recovered with an R0 tipping point. Same math for flu and pop-star fever.
SHARED JOBS: EXPLAIN · ACT
DYNAMICSSystem Dynamics / Feedback Loops
Stocks, flows and reinforcing loops turn small pushes into addiction spirals or virtuous cycles.
SHARED JOBS: EXPLAIN · ACT
GAMESCollective Action & Commons (Ostrom)
Shared pools survive with boundaries, monitors and graduated sanctions — no panacea.
SHARED JOB: ACT