The main driver of inequality—the tendency of returns on capital to exceed the rate of economic growth—today threatens to generate extreme inequalities that stir discontent and undermine democratic values.
Marx laid out how capitalist economy would unavoidably suffer periodic crises worsening over time while the general rate of profit would slow. Not only will rich people separate from poor people, but the super-rich will separate much faster from poor people and even from other rich people.
Different areas of the world, however, will differ. Small business owners and family farmers would lose their livelihoods. A global wealth tax, by contrast, is an untested idea without a chance of being adopted — and, if it were, would not adequately address the intergenerational mobility issue.
See, for example, my May paper in the American Economic Review: But we have not modified the deep structures of capital and inequality as much as we thought in the optimistic decades following World War II. He addresses an argument made by supporters of high CEO salaries: In contrast to those two characters, who are on the whole worthy fellows, Vautrin is deeply wicked and cynical.
He confirms what everyone already knows: To understand why the mainstream finds this proposition so annoying, you have to understand that "distribution" — the polite name for inequality — was thought to be a closed subject.
But it is the way Thomas Piketty says it — subtly but with relentless logic — that has sent rightwing economics into a frenzy, both here and in the US.
By this time, the book's strengths are widely known. The book presents an essential background study for that work. Piketty has been as good or better than anyone at both making all his data available and documenting what he does generally". He has proved it. He paints a detailed portrait of the various possible careers that await his young friend if he pursues studies in law or medicine, fields in which professional competence counts more than inherited wealth.
By the same token, there's a good case to be made for funding smaller classes in poorer areas, especially in the early grades.
Piketty suggests the obvious direct solution: But contrast it with the magnitude of the income premium associated with educational achievement:. Apr 19, · The reception for his “Capital in the 21st Century” has led the French economist Thomas Piketty to Washington’s halls of power and New York’s media outlets.
“Thomas Piketty’s Capital in the Twenty-First Century is a monumental book that will influence economic analysis (and perhaps policymaking) in the years to come. In the way it is written and. Abstract. Thomas Piketty's "Capital in the 21st century" may be one of the most important recent economics books.
It jointly treats theory of growth, functional distribution of income, and interpersonal income inequality.
"Thomas Piketty's book Capital in the Twenty-First Century has enjoyed great success and provides a new theory about wealth and inequality.
However, there have been major criticisms of his work. This happened a day after I finished reading his Capital in the 21st Century, almost seven months after first hearing about it on the Colbert Report.
It is a remarkable book and I recommend it.
A new book released in the Philippines collects the work of eight authors who re-examine modern imperialism and monopoly capitalism a century after Lenin's groundbreaking title was published.Capital in the 21st century book