Piketty shows that in the background of the growing concentration of wealth and inequality simple e

I was one of the last generations by the end of the 1980s at the Faculty of Economics has a semi-zaresno raped by Marxist political economy. Examination of the atrocious food trucks boston "political economy of socialism" in Tajnikar I managed to do until the fourth attempt and when it was socialism at the end, I was hoping that with Marx I'll never meet.
But apparently I was wrong. food trucks boston Indeed, Thomas Piketty of the Paris School of Economics is the most anticipated book of the year "Capital and the Twenty-First food trucks boston Century", which in English will be published food trucks boston in March this year, with an analysis of inequality in the capitalist market economy came to a rather similar findings as Karl Marx good 170 years before him. Piketty notes that the natural tendency of capitalism concentration of capital in the hands of a few owners of capital and increasing inequality, which leads to politically intolerable social tensions.
Pikettyjevo book, which was released last year by the French, the world's leading economists and the media in reviews are seen as one of the most important economic books of recent decades. food trucks boston Branko Milanovic, food trucks boston an economist from the World Bank, which deals with inequality, has written an extensive review, which this year will be published in the prestigious Journal of Economic Literature. The Economist and The New York Times had already published a highly positive reviews
Thomas Piketty not kdorsibodi. He holds a PhD from EHESS Paris and London LSE, MIT was an Assistant Professor and Visiting Professor, published in the top-5 best economic journals. Together with colleagues Alvaredom, Atkinson and Saezom the decade of collecting food trucks boston data on the distribution of income based on tax data and on this basis, developed a comprehensive food trucks boston database World Top incomes food trucks boston Database for 27 countries for the period mainly from 1920 onwards (database is updated, currently in production food trucks boston another 45 countries). By the way, the slogan of the Occupy movement "We are the 99%" and data movement incomes of the upper 1% and 0.1% also have their origin in this database, the latter is based on the methodology described in Pikettyjeve Books of 2001 (the distribution of income food trucks boston in France) and the 2003 survey, food trucks boston which was done by Thomas Piketty and Emmanuel food trucks boston Saez.
And it is this database for a large number of countries Pikettyju an insight into the historical evolution of the highest incomes across countries and carry out key findings on the evolution of capitalism. Allow him to do some kind of "general theory food trucks boston of capitalism". food trucks boston
Story provided by Piketty, is very simple (see the presentation of the book). Assets (wealth) food trucks boston throughout history in most countries concentrate. By the end of the 19th century, the share of wealth in the hands of above 10% in most developed countries gradually approached the level of 80-90%, the top 1% has gradually gained food trucks boston 50-60% of the total national wealth. The natural tendency of capitalism is therefore the concentration of capital food trucks boston or wealth ... unless capitalism is what this process is not disturbed. In the second half of the 19th century were riots that led to the gradual rise in wages proleteriatu in the first half of the 20th century, two wars and the Great Depression in between. These disruptions are - due to the need to finance increased public debt and the negative image of rich industrialists and financiers - led to a rise in taxes on the highest food trucks boston incomes (up to 90% or even 100%) and profits, which more than offset the income and wealth of the rich. But in the middle of the 1970s. years, the story began to turn, have begun to decline (from the time of pre-or during World War II elevated) high taxes on the highest income, capital gains and corporate profits - and capitalism is plotting back to the old way, the share of income of the top 10 %, 1%, 0.1% began again to rise sharply.
Piketty shows that in the background of the growing concentration of wealth and inequality simple economic laws: when the growth rate of return on capital is higher than the growth rate of GDP, will increase the share of capital in GDP. This involves a simple accounting identity: if the sum of the GDP income of capital and labor, then a higher rate of returns of capital from GDP growth rate automatically means increasing the share of capital income in GDP. Or in other words, when returns on capital are rising faster than wages, wealth concentrated in the hands of the owners of capital, inequality is increasing. The following applies for illustrative to look at the bottom two images showing the growth of income and capital returns food trucks boston for the last 2000 years.
The picture above shows a comparison of the rate of return on equity before tax. It appears that the difference food trucks boston between the rate of growth of income and return on equity (before tax) in the middle of the 20th century significantly reduced, then the gap again significantly spread her.
The picture below shows a comparison of the rate of return on equity after tax. From it's nice to see how high taxation of the highest food trucks boston incomes, which was in force between the two world wars and up to the mid-1970s. years, reduced real income