Capital in the Twenty-First Century

23 Dec


Piketty’s Capital in the Twenty-First Century is that rare phenomenon, an economics tome that flies off the shelves.

” . . . . .

The gist of Piketty’s book is simple. Returns to capital are rising faster than economies are growing. The wealthy are getting wealthier while everybody else is struggling. Inequality will widen to the point where it becomes unsustainable – both politically and economically – unless action is taken to redistribute income and wealth. Piketty favours a graduated wealth tax and 80% income tax for those on the highest salaries.

Lord (Adair) Turner, the former chairman of the Financial Services Authority, says Capital is “a remarkable piece of work”. Turner, who has name-checked Piketty in his recent lectures, added: “He is saying that we have a set of tendencies at work to which the offset has to be a degree of redistribution. I completely agree with him.”

Krugman, writing in the New York Review of Books, says Piketty’s work will “change both the way we think about society and the way we do economics”.

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One Response to “Capital in the Twenty-First Century”

  1. stuartbramhall December 24, 2014 at 4:56 pm #

    My main problem with Piketty’s book is his failure to address monetary policy – namely the privilege we give private banks to issue debt-based money. Without ending the ability of banks to create money and restoring that function to state and national governments, I think it’s unrealistic to believe that other reforms are going end inequality.

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