I have just finished reading what is considered by many ‘influential’ people to be the most important economics book of recent years ‘Capital in the twenty first century’ by Thomas Piketty. In this review of the book I will argue that whilst his analysis of the present world capitalist system is correct his solutions to the crisis is both naïve and bankrupt.
Piketty correctly argues in my opinion that there is widespread inequality in the modern economic world. He states that a main reason for this is that capital returns are now higher than economic growth. The reasons for this is of course the introduction of the neo liberal globalist economy over the last 35 or so years.The mass privatization of state assets. The financialization of the world economy and the cuts in income and corporation tax for the rich.
However Thomas Piketty solution to the growth in economic inequality in recent years is in my opinion both naïve and utopian. Basically he is in favour of a global tax on capital. Now the obvious draw back to this idea is that there is no way that every government in the world will agree to this idea.
Piketty is a supporter of the French Socialist Party and the failed policies of the disastrous presidency of Francois Hollande who has carried out neo liberal policies to maintain France,s continuation in the Euro. For some reason Piketty argues in his book for greater EU integration. However it is obvious that the introduction of the Euro has been an economic disaster for the countries involved in the single currency.
So while his analysis of the growth of income inequality are correct his solution are not. What then is the solution to the growth in economic inequality. Firstly what is clearly needed is the building of new mass political movements in all countries in the world which should campaign for higher taxes for the rich and also public ownership of the major corporations. Also the rebuilding of national democracies and the dismantling of globalist institutions.
So I say to all people reading this blog get involved in building the new social and political movements that are needed to help build a new socially just world.