bookpresentation piketty capital in the 21st century

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Thomas Piketty Capital in the 21 st century

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Page 1: Bookpresentation Piketty Capital in the 21st Century

Thomas Piketty

Capital in the 21st century

Page 2: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Main question and claim

What do we really know about how wealth and income have evolved since the 18th century and what lessons can be derived for the future?

Inequality is not accidental, but feature of capitalism

Page 3: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Two World Wars

• Europe very inegalitarian 1900• War and policies central role in reducing inequalities

• Rose sharply again since 1970s

Page 4: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Division of society

• Lower class: bottom 50%• Middle class: next 40%• Upper class: top 10% (top centile and next 9%

• Huge gap in income in every modern society

Page 5: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Why inequality not same level as during Belle Époque?• Shocks of 1914-1945• Time • Structural change (middle class)• National tax on capital

Page 6: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Will globalization lead to greater concentration of capital?• Global inequality = European inequality 1900

• Massive hopes, but also massive inequities

• Solution?

Page 7: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Global tax on capital

• Democratic scrutiny• General > private interest• Preserving openness and competition

Page 8: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

The “social state”

• Taxes important• Health and education• Replacement incomes

• Transparency necessary

Page 9: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

How to regulate global capitalism?

• Global tax on capital• International bank transparency

• For now utopian• Beneficial to democracy

Page 10: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Context of publication

• Age of seemingly permanent crisis• Inequality very visible• If he is right, democracy threatened

• Diagnosis of our current society

Page 11: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Reception of the book

• Germany: 3 books published • “political and theoretical bulldozer” – Laurent Mauduit

• “authorative” – The Economist• “one of the watershed books in economic thinking” – Branko Milanovic (World Bank)

• Critique: normative, flawed data, basic concepts

Page 12: Bookpresentation Piketty Capital in the 21st Century

Faculty of Arts and Social Sciences

Thank you for your attention!Questions?

Do you think such a global tax on capital would be beneficial to democracy and is it überhaupt possible or desirable?