28 Apr, 2014
The French economist forcing America to wake up to the end of The Dream – The Independent
The central thesis of Capital in the 21st Century is that, left to its own devices, the capitalist system will increase the gap between rich and poor, as it always has done. Since the dawn of the industrial era, in countries such as Britain, France and the US, the return on investment and capital has been greater than the return on labour. According to Piketty, the mid-20th century, when these trends reversed, was an aberration, as two world wars and the Great Depression destroyed many great fortunes, and redistributive social democratic policies carried on the process in the immediate decades after 1945.
Now, however, he says, the pattern is reverting to type. A disproportionate share of wealth is going to capital; the more “perfect” the market, the more pronounced this trend will be. The West, in short, is in a new Gilded Age, where an ever greater share of the national pie is held by the same families, and passed down from generation to generation. Left unchecked, this unfairness will bring social resentments and tensions that will undermine democracy.
Loading ...
Liked this article? Share it!