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View Diary: Overnight News Digest April 20 (64 comments)

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  •  French economist Thomas Piketty (12+ / 0-)

    has studied wealth over the past three centuries and, in his new book, concludes that massive income equality (rather than a healthy middle class) is an almost inevitable bi-product of capitalism:

    Wealth as a share of income held steady at very high levels in the 18th and 19th centuries, contributing to stark inequalities in wealth and income. Rising worker wages in the late 19th and early 20th centuries stabilised growth in wealth concentrations but did nothing to reduce inequalities, which were only eliminated by the great shocks of the period from 1914 to 1950. Economists tricked themselves into thinking that the resulting compression in the income and wealth distribution was a natural feature of the maturation of capitalist economies. But as the shocks receded wealth began to accumulate again and growth in income inequality resumed. From the perspective of 2014, concentration of wealth and income begins to look like the natural state of capitalism rather than an exception.
    Much of this is because of inherited wealth.  

    The Economist

    I haven't read the book yet, although my copy has arrived and it is my summer project reading.

    Be sure you put your feet in the right place; then stand firm. ~ Abraham Lincoln

    by noweasels on Sun Apr 20, 2014 at 09:35:51 PM PDT

    [ Parent ]

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