EBOOK / PDF [Le capital au XXIe siècle]

review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty

Summary Le capital au XXIe siècle ´ eBook, ePUB or Kindle PDF What are the grand dynamics that drive the accumulation and distribution of capital uestions about the long term evolution of ineuality the concentration of wealth and the prospects for economic growth lie at the heart of political economy But satisfactory answers have been hard to find for lack of adeuate data and clear guiding theories In Capital in the Twenty First Century Thomas Piketty analyzes a uniue collection of data from twenty countries ranging as far back as the eighteenth cen. It s amazing to me how often Marxism gets repackaged and sold as if it was something new Piketty s book is a prime example of this It attempts to resell the already disproven lie about post WWII growth being caused by taxing the rich when in fact very few of the wealthy elite actually paid the 70 90% tax rates Post WWII growth was the result of the US holding excess gold reserves from Europe and the Bretton Woods conference that made the US dollar the world s reserve currency Anyone who tells you any different is an idiot a liar or both Economic illiteracy has resulted in the rising support of socialism even though socialism has failed over and over again And even though no country has ever allowed pure capitalism to exist capitalism gets blamed by those who have no idea WTF they are talking about What we have today are central banks who micromanage the global economy screwing over all of the small countries setting off all kinds of market distortions and causing one boom bust cycle after another Instead of allowing a nation s economy grow at natural rates the nations of the world have allowed the ruling class to instill various forms of cronyism and corporatism while calling it capitalism Save your money and skip over this book Go straight to FA Hayek s The Road To Serfdom a book that set the record straight back in 1944 You will learn about the roots of socialism and understand that such ideas are not new and will never work no matter how it gets repackaged

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Summary Le capital au XXIe siècle ´ eBook, ePUB or Kindle PDF He tendency of returns on capital to exceed the rate of economic growth today threatens to generate extreme ineualities that stir discontent and undermine democratic values But economic trends are not acts of God Political action has curbed dangerous ineualities in the past Piketty says and may do so againA work of extraordinary ambition originality and rigor Capital in the Twenty First Century reorients our understanding of economic history and confronts us with sobering lessons for toda. This book is too big and too dense to swallow in one shot so I am going to review it chapter by chapter This will not sound actually like a review but rather like reader s notes as I try to gather my thoughtsIntroductionThomas Piketty plans to attack the knotty problem of capital the slippery concept that has avoided the determined efforts of great brains such as Malthus Marx and Adam Smith to collar it and place it in a compartment where it can be studied and analysed scientifically More specifically this is an effort by him to understand the dynamics of income ineuality the most wretched problem affecting humanity ever since it became civilised It is Piketty s aim to dispassionately study a subject the debate on which has long been based on an abundance of prejudice and a paucity of factThe income gap was huge in the pre industrial society land was the source and it was owned by very few people Theoreticians like Malthus and Ricardo gave gloomy predictions of systemic collapse as the land got dearer and dearer However with the industrial revolution the agrarian economy gave way to the industrial and the landowners were no longer the lords of all they survived Upward mobility was no longer hampered by accidents of birthThe industrial society however lead to large accumulation of wealth in the hands of a few entrepreneurs and the income disparity began to skyrocket setting the stage for the entry of Marx and his theory of the collapse of the capitalist society It did not happen as wages began to increase towards the end of the nineteenth century and the two world wars proved to be great levellersSimon Kuznets in the twentieth century changed the Marxian horror story into a fairy tale where the income disparity would keep on decreasing until it stabilised at an acceptable level at advanced stages of capitalism Sadly that also did not happen and we are once in the era of increasing wealth gapOn addressing this vexatious problem Piketty has based his analysis on the conclusion he has arrived at by the study of his historical sources1 Be wary of economic determinism The distribution of wealth has always been deeply political2 The dynamics of wealth distribution reveal powerful mechanisms pushing alternately toward convergence and divergenceThe second point the author says is at the heart of the book While the focus on training and increasing skills of the populace is a force of convergence nepotism and protectionism which exclude certain groups from acuiring skills and those who survive just by increased returns on capital are forces of divergence The author saysThis fundamental ineuality which I will write as r g where r stands for the average annual rate of return on capital including profits dividends interest rents and other income from capital expressed as a percentage of its total value and g stands for the rate of growth of the economy that is the annual increase in income or output will play a crucial role in this book In a sense it sums up the overall logic of my conclusions The remaining part of the introduction lays out the structure of the book and is basically an exposition of how he will evaluate the concepts briefly touched upon in the introductionPart OneChapter OneThe basic concepts presented in this chapter that of the national income and capital and how they define the economic structure of a country National income is defined as the sum of all income available to the residents of a given country in a given year regardless of the legal classification of that income it is the Gross Domestic Product GDP which is the goods and services generated minus the depreciation of capital which made this possible Capital is defined as the sum total of nonhuman assets that can be owned and exchanged on some market Capital includes all forms of real property including residential real estate as well as financial and professional capital plants infrastructure machinery patents and so on used by firms and government agencies National wealth or national capital is the total market value of everything owned by the residents and government of a given country at a given point in time provided that it can be traded on some market It consists of the sum total of nonfinancial assets land dwellings commercial inventory other buildings machinery infrastructure patents and other directly owned professional assets and financial assets bank accounts mutual funds bonds stocks financial investments of all kinds insurance policies pension funds etc less the total amount of financial liabilities debt To summarise income is a flow and capital is stockThe author then defines his first fundamental law of capitalism asThe share of income from capital in national income is capital to income ratio multiplied by the rate of return on capitalr i e r That is if the capitalincome ratio is 600% and the rate of return is 5% then the share of income from capital is 30% the author says these figures are typical for developed countries The second fundamental law of capitalism is stated as the higher the savings rate and the lower the growth rate the higher the capital income ratio Thus higher capitalisation leads to ineuality because income is generated from capital Ineuality is also spread across the globe because the developed countries own capital across the globe than the undeveloped ones According to classic economic theory this excess capital of the rich will lead to investments in poor countries boosting their productivity and closing the gap The major flaw in this logic is that the increase in output in the poor countries need not necessarily lead to an increase in income because of low wages which is why most of the global manufacturing giants put up their manufacturing units in third world countriesThe only way the poor can catch up with the rich is through the diffusion of knowledge by the learning of technical know how skills and education This goes for countries as well as peopleChapter Two Growth Illusions and RealitiesThe central thesis of this book is precisely that an apparently small gap between the return on capital and the rate of growth can in the long run have powerful and destabilizing effects on the structure and dynamics of social ineuality In a sense everything follows from the laws of cumulative growth and cumulative returns and that is why the reader will find it useful at this point to become familiar with these notions Saying thus Piketty in this chapter concentrates on what is meant by growth The two aspects he considers are demographic growth and economic growthDemographic growth or population was stagnant mostly until 1700 after which it began to rise significantly the rate peaked at around 2% per year between 1950 and 1970 Since then it has been declining steadily and is expected to reach less than 02% by the end of the century In pessimistic forecasts it could even become negative in the developed countries This has an impact on the structure of capital as a growing country would have to generate than a country in which population is stagnant because there simply wouldn t be enough inherited wealth to go around Thus a growing demographic profile inherently plays an eualising role There is also the neoliberalist argument that a growing economy inherently reduces ineuality by providing upward mobility but the author says this argument has to be taken with a pinch of salt he promises to explain it further aheadWhen we come to economic growth the corresponding spurt took place in the Twentieth Century with substantially higher generation of wealth and considerable increase in the standard of living across all populations In Europe the growth peaked in the time immediately following the world wars In Asia a few decades afterwards Surprisingly neither the European Welfare State Model nor the neoliberalist model had any specific impact on the growth spurt Global growth rates are however steadily declining and the author expects it to bottom out at 15% at the end of this century Significant changes that occurred in the Twentieth Century is the delinking of currency from the gold standard and the increased contribution of services to the economy from 13% in 1800 to 80% in 2012 with a consummate fall in the contribution of agriculturePart Two The Dynamics of Capital Income RatioChapter Three The Metamorphoses of CapitalAs the title says this chapter explores how capital in England and France have shifted from mostly agricultural land to buildings business capital and financial capital invested in firms With the collapse of colonialism following the two disastrous wars the returns from foreign holdings of both Britain and France fell drastically However it did not drastically affect the capital structure the long term change was the transformation from agricultural land to real estate and capital stock Also in both these countries the capital owned by the government is negligible compared to the capital owned by its citizens 1% in Britain and 5% in France this has not changed over the years This is a characteristic of all free market economiesThis brings us to the subject of public debt Both the British and French governments borrow from their citizens In Britain the public debt rose to huge levels at the end of the Napoleonic wars in the Nineteenth century and at the end of the Second World War because Britain chose to meet the governmental needs through debts In contrast France met this through increased taxes so its debt burden remained relatively the same According to the author this helped to enhance the power of private wealth in British economy Also the public debt of France was largely controlled after the wars through redistribution via inflation around 13% per year while in England inflation remained relatively low 3% per year and the debts were paid back slowlyAlso there is the curious phenomenon in France of capitalism without capitalists The Great Depression and World War II destroyed the country s faith in moneyed individuals and many industries and enterprises were nationalised However the neoliberalist wave in the 1980 s resulted in many of these nationalised assets being privatised again through the selling of shares France has returned to capitalism without really understanding why as the author says The same thing happened with India under the Narasimha Rao government in 1991 From then on each successive government has been outdoing the previous one in aggressive privatisation This has almost become an obsession with the second stint of the BJP under Modi

review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty

Summary Le capital au XXIe siècle ´ eBook, ePUB or Kindle PDF Tury to uncover key economic and social patterns His findings will transform debate and set the agenda for the next generation of thought about wealth and ineualityPiketty shows that modern economic growth and the diffusion of knowledge have allowed us to avoid ineualities on the apocalyptic scale predicted by Karl Marx But we have not modified the deep structures of capital and ineuality as much as we thought in the optimistic decades following World War II The main driver of ineuality t. The Economist magazine rightly calls French professor Thomas Piketty the new Marx although a watered down version Piketty s bestseller rated 1 on is a thick volume with the same title as Karl Marx s 1867 magnum opus Kapital The publisher Harvard University Press appropriately designed the book cover in red the color of the socialist workers partyPiketty cites Karl Marx than any other economist even than Keynes The professor barely mentions Adam Smith Instead of the modern scientific name economics he prefers the old term political economy a favorite of radical professorsAnd most importantly Piketty s focus is on the distribution of income and capital not the creation of wealth He s not so much concerned with the size of the economic pie but how it s cut upHis main thesis is that ineuality grows under capitalism that unfettered free markets make the rich richer and the poor poorer a standard Marxist position and that the only solution is to tax the dirty filthy stickin rich with highly progressive taxes on their income and wealthI don t want to be picky but Piketty often ignores data that contradicts his theory of growing ineuality For instance he selectively chooses members of the Forbes magazine billionaires list to show that wealth always grows automatically faster than the average income earner He repeatedly refers to the growing fortunes of Bill Gates in the United States and Liliane Bettencourt heiress of L Oreal the cosmetics firm Once a fortune is established he claims the capital grows according to a dynamic of its own and it can continue to grow at a rapid pace for decades simply because of its size Come againI guess he hasn t heard of the dozens of millionaires and billionaires who lost their fortunes like the Vanderbilts or to use a recent example Eike Batista the Brazilian businessman who just two years ago was the seventh wealthiest man in the world worth 30 billion and now is practically bankruptPiketty conveniently ignores the fact that most high performing mutual funds eventually stop beating the market and even underperform Take a look at the Forbes Honor Roll of outstanding mutual funds Today s list is almost entirely different from the list of 15 or 20 years ago In our business we call it reversion to the mean and it happens all the timeThe professor seems to have forgotten a major theme of Marx and later Joseph Schumpeter that capitalism is a dynamic model of creative destruction Today s winners are not necessarily next year s winners IBM used to dominate the computer business now Apple does Citibank used to be the country s largest bank Now it is Chase Sears Roebuck used to be the largest retail store Now it is Wal Mart GM used to be the biggest car manufacturer Now it is Toyota And the Rockefellers used to be the wealthiest family Now it is the Walton family who a generation ago were dirt poorPiketty is no communist and is certainly not as radical as Marx in his predictions or policy recommendations Many call Piketty Marx Lite He doesn t advocate abolishing money and the traditional family confiscating all private property or nationalizing all of the industries But he s plenty radical in his soak the rich schemes a punitive 80% tax on incomes above 500000 or so and a progressive global tax on capital with an annual levy between 01% and 10% on the greatest fortunesWhy assess a tax of even 01% on wealth It destroys a fundamental sacred right of mankind financial privacy and the right to be left alone An income tax is bad enough But a wealth tax is worse A wealth tax is Big Brother at his worst Such a tax would reuire every citizen to list all his or her assets The intent is to prevent any secret stash of gold and silver coins diamonds artwork or bearer bonds Suddenly the privacy guaranteed to Americans by the Fourth Amendment would be denied and produce an illegal and underground black marketEually important a wealth tax is a tax on capital the key to economic growth The worst crime of Piketty s vulgar capitalism is his failure to understand the positive role of capital in advancing the standard of living in the world As Andrew Carnegie simply said Capitalism is about turning luxuries into necessities The latest example is the smartphone It s the great eualizer Virtually everyone rich and poor has one thanks to the ingenuity of entrepreneurs like Steve Jobs This is democratic capitalism at its best Income ineuality may be growing but when it comes to goods and services ineuality may be shrinkingTo create new products and services and raise economic performance a nation need capital lots of it Contrary to Piketty s claim it is good that capital grows faster than income because it means people are increasing their savings rate The only time capital declines is during war and depression when capital is destroyedPiketty blames the increase in ineuality on low growth rates He says return on capital tends to be higher than the economic growth rate Good let s increase economic growth with tax cuts sensible deregulation better trainingeducation productivity and opening tradeEven Keynes understood the value of capital investment and the need to keep it growing In his Economic Conseuences of the Peace Keynes compared capital to a cake that should never be eaten The virtue of the cake was that it was never to be consumed neither by you nor by your children after you If the capital cake is the source of economic growth and a higher standard of living we want to do everything we can to encourage capital accumulation Make the cake bigger and there will be plenty to go around for everyone This is why increasing corporate profits is good it means money to pay workers Studies show that companies with higher profit margins tend to pay their workers Remember the Henry Ford 5 a day story of 1914 In honor of its centennial I m telling this story again at FreedomFest this July 9If anything we should reduce taxes on capital gains interest and dividends and encourage people to save and thus increase the pool of available capital and entrepreneurial activity A progressive tax on high income earners is a tax on capital An inheritance tax is a tax on capital A tax on interest dividends and capital gains is a tax on capital By over taxing capital estates and the income of our wealthiest people including heirs to fortunes we are selling our country and our nation short You can never have too much capitalWhat country has advanced the most since World War II Hong Kong which has no tax on interest dividends or capitalThe great Scottish economist Adam Smith once said Little else is reuired to carry a state from the lowest barbarism to the highest degree of opulence but peace easy taxes and a tolerable administration of justice Moreover his system of easy taxes and natural liberty would reduce ineuality and result in universal opulence which extends itself to the lowest ranks of the people My hope is that Professor Piketty will see the error of his ways and write a seuel called The Wealth of Nations for the 21st Century which will uote Adam Smith instead of Karl Marx Perhaps he will uote this passage To prohibit a great people from making all that they can of every part of their own produce or from employing their stock and industry in the way that they judge most advantageous to themselves is a manifest violation of the most sacred rights of mankind


10 thoughts on “EBOOK / PDF [Le capital au XXIe siècle]

  1. says: EBOOK / PDF [Le capital au XXIe siècle] Thomas Piketty Ô 8 Read review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty

    EBOOK / PDF [Le capital au XXIe siècle] Given the amount of hype and misinformation around this book I'll start by saying what Capital in the 21st century is not about This book is NOT1 A work of opinion journalism or punditry Though obviously it does contain the views of its author 2 A prescriptive manifesto trying to explain how to utterly eradicate ineuality worldwide though its author does feel constructive steps can be taken to reduce such ineualities 3

  2. says: EBOOK / PDF [Le capital au XXIe siècle]

    EBOOK / PDF [Le capital au XXIe siècle] This book is basically the Harry Potter of Economics – I mean in terms of blockbuster sales and turning its author into a rock star He is being credited with giving new life to the left The book is very long I’m not sure if you really need to read the whole thing either Depending on what you want to get out of this you really could get by with reading the Introduction and the Conclusion If that doesn’t seem enough then you could re

  3. says: Free download Le capital au XXIe siècle review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Thomas Piketty Ô 8 Read

    EBOOK / PDF [Le capital au XXIe siècle] It's amazing to me how often Marxism gets repackaged and sold as if it was something new Piketty's book is a prime example of this It attempts to resell the already disproven lie about post WWII growth being caused by taxing the rich when in fact very few of the wealthy elite actually paid the 70 90% tax rates Post WWII growth was the result of the US holding excess gold reserves from Europe and the Bretton Woods confer

  4. says: EBOOK / PDF [Le capital au XXIe siècle] review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Thomas Piketty Ô 8 Read

    EBOOK / PDF [Le capital au XXIe siècle] This is my five stars of this book changed the way I look at something not five stars of flawlessness or five stars of thinking everyone in the world should read it Since I didn't have an opinion before it would be accurate to say this book gave me a way of looking at the structure of wealth in economies over timeFirst things first for people who read reviews of the book rather than the book itself This book i

  5. says: EBOOK / PDF [Le capital au XXIe siècle]

    EBOOK / PDF [Le capital au XXIe siècle] The Economist magazine rightly calls French professor Thomas Piketty the new Marx although a watered down version Piketty’s bests

  6. says: Free download Le capital au XXIe siècle EBOOK / PDF [Le capital au XXIe siècle] review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty

    EBOOK / PDF [Le capital au XXIe siècle] “Indeed the distribution of wealth is too important an issue to be left to economists sociologists historians an

  7. says: Thomas Piketty Ô 8 Read review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Free download Le capital au XXIe siècle

    review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty EBOOK / PDF [Le capital au XXIe siècle] Spoiler alertHoly smokes this was a tour de force of political economy economic history Piketty explains why a tax on capital is so much preferable than taxes on income the need for global cooperation and why ineuality in America will only get worse unless policymakers address higher education affordability tax policies especially on inheritance and minimum wage laws A brutally long read yet well worth the effort

  8. says: EBOOK / PDF [Le capital au XXIe siècle] review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Thomas Piketty Ô 8 Read

    EBOOK / PDF [Le capital au XXIe siècle] review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Free download Le capital au XXIe siècle This book is too big and too dense to swallow in one shot so I am going to review it chapter by chapter This will not sound actually like a review but rather like reader's notes as I try to gather my thoughtsIntroductionThomas Piketty

  9. says: review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Thomas Piketty Ô 8 Read Free download Le capital au XXIe siècle

    Free download Le capital au XXIe siècle review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty Thomas Piketty Ô 8 Read Fresh confirmation Piketty likely underestimated the growth of extreme ineualityhttpswwwwashingtonpostcomnewswfeed the poor

  10. says: EBOOK / PDF [Le capital au XXIe siècle]

    Free download Le capital au XXIe siècle Thomas Piketty Ô 8 Read review ↠ eBook, ePUB or Kindle PDF Ô Thomas Piketty The central thesis of this book isAn apparently small gap between the return on capital and the rate of growth can in the long run have powerful and destabilizing effects on the structure and dynamics of social ineuality

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  • Hardcover
  • 685
  • Le capital au XXIe siècle
  • Thomas Piketty
  • English
  • 10 March 2020
  • 9780674430006