Why is it that the rich always seem to win? - Richard Murphy

5th November 2025

Thomas Piketty called it the most important formula in economics: it's R is greater than G , which means that the rate of return on capital (R) is greater than the rate of growth in the economy (G).

That simple equation explains why the wealthy always get richer, why inequality keeps growing, and why governments pretend it's inevitable when it isn't.

In this video, I unpack how political choices and not economic laws have made wealth compound and wages stagnate, and what we can do to reverse it.

00:00 - Why the wealthy always get richer
01:00 – The myth of hard work and prosperity
02:00 – Piketty’s simple formula: R G
03:00 – How returns on capital outpace wages
04:00 – The postwar exception: 1945–1975
05:00 – Thatcher, Reagan, and the return of inequality
06:00 – Deregulation, tax cuts, and the rise of finance
07:00 – How R G drives stagnation for the many
08:00 – The moral and economic consequences of inequality
09:00 – Reversing course: G must be greater than R
10:00 – Building a democratic, caring economy
11:00 – Reclaiming wealth for the benefit of everyone