α = r * β … “first fundamental rule of capitalism” where α is the share of income from capital in national income; r is the rate of return on capital, and β the capital to income ratio. [pp.52]
β = s / g … “second fundamental rule of capitalism” where β is the capital to income ratio; s is the saving rate; and g is the growth rate. [pp.166]
by = μ * m * β … “annual economic flow of inheritances and gifts, expressed as a proportion of national income” (by) where μ is the ratio of average wealth at time of death to average wealth of living individuals, m is the mortality rate, and β is the capital to income ratio (here the total private wealth to national income).
r > g … rate of return on capital (r) is greater than economic growth (g).
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