5. The Capital/Income Ratio over the Long Run. 6. The Capital-Labor Split in the Twenty-First Century. Part Three: The Structure of Inequality. 7. Editorial Reviews. Review. “It seems safe to say that Capital in the Twenty-First Century, the magnum opus of the French economist Thomas Piketty, will be the. Read "Capital in the Twenty-First Century" by Thomas Piketty available from Rakuten Kobo. Sign up today and get $5 off your first download. The main driver of.
|Language:||English, Spanish, Hindi|
|Genre:||Fiction & Literature|
|Distribution:||Free* [*Sign up for free]|
Get this from a library! Capital in the twenty-first century. [Thomas Piketty; Arthur Goldhammer] -- Piketty analyzes a unique collection of data from twenty. Thomas Piketty Capital In The Twenty First Century [ ][ A]. Topics the capital. Collectionopensource. LanguageEnglish. thomas. Identifier. The main driver of inequality--returns on capital that exceed the rate of economic growth--is again threatening to generate extreme discontent.
Capital draws on more than a decade of research by Piketty and a handful of other economists, detailing historical changes in the concentration of income and wealth. This pile of data allows Piketty to sketch out the evolution of inequality since the beginning of the industrial revolution.
In the 18th and 19th centuries western European society was highly unequal.
Private wealth dwarfed national income and was concentrated in the hands of the rich families who sat atop a relatively rigid class structure. This system persisted even as industrialisation slowly contributed to rising wages for workers. Only the chaos of the first and second world wars and the Depression disrupted this pattern.
This is 'patrimonial capitalism'. In this approach, Piketty clashes with the current orthodoxy on income inequality and capitalism.
One example is Simon Kuznets' developmental curve, which claims that income inequality will go away on its own once capitalism has achieved a sufficiently high state of development. Piketty goes after Kuznets' lack of empirical evidence, but also for how explicitly apolitical his theory is. Piketty notes that there are three political factors which go against income inequality - wars which physically destroy stored capital, taxes which redistribute it, and inflation which destroys financial capital.
So what happens to developing countries? For India and Africa, Piketty admits these are out of his topic and it's a bit too early to tell.
The Chinese will reach the Western European economy within the next century, having achieved years of development through 75 years of pain. So speaking of the future, what will happen to the United States and Europe? Will there be a reversal?
Piketty differs from the apocalyptic predictions of Marx, and instead firmly says that the future is unpredictable. But economic theories change with the times, as Piketty notes in his introduction.
Those theories which hail the endless growth of markets yesterday seem awfully out of date today.
In terms of policy recommendations, Piketty's suggestions are beguiling in their simplicity. In terms of redistribution of capital and re-instituting further recovery, he advocates progressive income taxation, estate taxes, and capital gains taxes. The problem, of course, is political implementation, as these plans are only barely more popular than the alternatives of wars or massive inflation. But still he has hopes for a broader international scheme to shutter tax havens.
The only thing missing is a discussion of the effects of income inequality - why is it so bad in the first place?
Those who are in favor of it point to the idea of a meritocracy and rewarding entrepreneurial incentive. Review quote Thomas Piketty's Capital in the 21st Century is arguably the most important popular economics book in recent memory.
It will take its place among other classics in the field that have survived changing theoretical and political fashions, such as its namesake by Karl Marx Das Kapital, or other ambitiously titled books such as John Maynard Keynes's The General Theory of Employment, Interest, and Money Anyone who wants to engage in an informed discussion about the economic landscape will have to read Piketty.
Piketty's Capital feels very much like a Category 4 hurricane that hasn't yet made landfall Piketty draws on a vast store of historical data to argue that the broad dissemination of wealth that occurred during the decades following World War I was not, as economists then mistakenly believed, a natural state of capitalist equilibrium, but rather a halcyon interval between Belle poque inequality and the rising inequality of our own era Piketty's most provocative argument is that the discrepancy between the high returns to capital and much more modest overall economic growth--briefly annulled during the mid-century--ensures that the gulf between the rich who profit from capital investments and the middle class who depend chiefly on income from labor will only continue to grow The best reason to raise tax rates is not to punish the rich, of course, but to raise the revenue which the United States needs to invest in infrastructure and research, not to mention to pay for Social Security and health care.
That investment gap poses a clear and present danger to American global economic leadership. Rising inequality exacerbates the problem by sapping the collective political will needed to address the problem.
Rating details. Book ratings by Goodreads.