The result is an economic inequality double-whammy in which two of the most pro-rich elements of the tax code are further
If you find it hard to grasp just how unequal the global economy is, here's one stat that should put it all in perspective
According to the Herald, Piketty said he viewed Argentina as “full of tension over the question of distribution.” The famed
In fact, the FT editor who criticized the French economist's blockbuster, 700-page tome on inequality is sticking by his
“The problem with all the publicity is you have people who write about the book who apparently have not opened it,” Piketty
Piketty's concerns are relevant to the growing inequality in China that has resulted from adopting the neo-liberal capitalist model from the West. Hence, Piketty's reflection on mainstream Western economics indirectly treads a delicate ground in China. It fits right into the current raging debate over which path China's reformers should take in the next stage of "structural reform."
According to the prevailing story, debt is caused by lavish and irresponsible spending by poor and middle-class families. But like much "conventional wisdom," an increasing amount of evidence belies this point.
For the rest of the world, much of which has experienced the truly heinous inequalities associated with the colonialism that so enriched the West, the discussion is old hat. Many countries are only recently recovering from the effects of plundering, destruction of social and cultural institutions and resource extraction. Ironically, the realm of finance now labels these nations as "emerging markets." And yet Piketty's analysis is framed exclusively by western historical experience and thus unfortunately ignores the context in which western wealth creation occurred, despite the fact that many seek to perpetuate and emulate it today.
Addressing inequality shouldn't be about penalizing the rich. It shouldn't be about reviving discredited socialist economic ideas from the 1970s in 21st century European think tanks. It should be about fixing the policies and practices that cause inequality.
Today, instead, we have a wealthy class with the culture of new money and innovativeness of old money (i.e., rather little of either). This new rentier class, with little to offer society, subsists largely on legalized grift or, in economic terms, rent.