Dig deeper: May 2014 April 2014 January 2014 Update: This blog post has been amended to remove the news peg. This is a monumental work about inequality. What are the criticisms of it? This happens more or less automatically, and there is no reason to believe this trend will change or reverse course. Inside this Instaread Summary of Capital in the Twenty-First Century: · Overview of the Book · Important People · Key Takeaways · Analysis of Key Takeaways About the Author With Instaread, you can get the key takeaways, summary and analysis of a book in 15 minutes. He insists that economic and political changes are inextricably entwined and must be studied together.
It compares history and its relevance in the modern day society. How to Inflate the Return of Capital by Jean-Philippe Delsol Section 5. This allows Piketty to sketch out the evolution of inequality since the beginning of the industrial revolution. Finally, Piketty suggests various possible responses to stave off this crisis, with his preferred option being presented as a progressive system of tax on capital. The Sociology of Piketty's Anti-Rich Stance by Nicolas Lecaussin Section 3.
The main driver of inequality—returns on capital that exceed the rate of economic growth—is again threatening to generate extreme discontent and undermine democratic values. This is a book for everyone no matter your profession or stage in life because it illuminates the arch of wealth and where we are now. The contributors take stock of the key concepts involved - capital, wealth and income, inequality, economic development, financialization - and evaluate the evidence for historical trends in existing national statistical data sources. That changed in developed countries during the twentieth century for a number of reasons. Piketty concludes that national debt can only be reduced by: repudiation bad , inflation horrible , austerity really horrible , or a progressive tax on capital reasonable. But what is his book all about? While the book is quite long, the major conclusion can be summarized very briefly: Piketty has found that, over the long run, the return on capital is higher than the growth rate of the overall economy. What does it get right? Piketty closes the book by recommending that governments step in now, by adopting a global tax on wealth, to prevent soaring inequality contributing to economic or political instability down the road.
There is no natural, spontaneous process to prevent destabilizing ineqalitarian forces from prevailing permanently. Some reckon it heralds or may itself cause a pronounced shift in the focus of economic policy, toward distributional questions. Piketty illustrates the drastic effects of the Great Depression and two World Wars on capital, and the unexpected positive consequences that have, until recently, led to reductions in income inequality. What is correct in it? Piketty's Numbers Don't Add Up by Martin Feldstein 10. This data series begins in each country when an income tax was established usually 1910-1920 but as early as the 1880s in Japan and Germany.
Piketty examines economic data from several centuries and from several countries, and attempts to draw conclusions about the balance between earned income and capital-driven income, and the resulting outcomes for income distribution and income equality. Forbes magazine divides billionaires into three groups—pure heirs, heirs who subsequently grow their wealth, and pure entrepreneurs, with each of these groups representing about a third of the total. This book is indispensable for anyone seeking answers to these questions. Piketty has been described as a new Karl Marx and placed in the same league as the economist John Maynard Keynes. This background information discusses economic data sources, measures of inequality and why income inequality is such an important issue today. This change counters increased life expectancy and accounts for almost half of the present inheritance flows. Nonetheless, few people actually read the book.
This figure is lower than the 80-90% reached during the belle Epoque, but trending strongly toward a return to that level. The history of inequality is shaped by the way…actors view what is just…as well as the relative power of those actors. The book describes how the concentration of wealth has changed over time. As a result the drive toward increased inequality is likely to be relentless. Taxation: Consequences of Piketty's Policies and Alternative Reforms. The E-mail message field is required.
The force of his case rests not on a diatribe or a political agenda, but on carefully collected and analyzed data and reasoned thought. In this important new book, 18 economists from Europe, North America and Asia offer sympathetic but critical appraisals of Piketty's theoretical framework, his empirical analysis and his radical policy proposals. This book lays out the argument of Piketty's monumental work in a compact and understandable format, while also investigating the controversies that this book has caused. The historical record suggests that this is untrue. The book has unsurprisingly attracted plenty of criticism. Many economists have argued that increasing worker productivity in the modern era will inevitably result in reduced inequality.
Productivity growth was nearly twice as high in the former period as in the latter. The juxtaposition of economic stagnation and obscene inequality in the aftermath of the financial crisis made it impossible for mainstream economists to continue ignoring inequality, let alone applauding it as they have done for so long. The Dangers of the Historicist Method 16. Piketty Is Misleading about the Swedish Case by Malin Sahlen and Salim Furth 15. Second, it fills in some of the gaps in the book, by providing readers with the background that is needed to understand the volume and the argument. We read every chapter, identify the key takeaways and analyze them for your convenience. This is not a chapter-by-chapter summary.