Capital in the Twenty-first Century

Abstract

The book Capital in the Twenty-First Century by Thomas Piketty has been a phenomenon in economics, the social sciences, politics and related disciplines. Piketty examines economic data from several centuries and from several countries, and attempts to draw conclusions about the balance between earned income and capital-driven income, and the resulting outcomes for income distribution and income equality. Piketty illustrates the drastic effects of the Great Depression and two World Wars on capital, and the unexpected positive consequences that have, until recently, led to reductions in income inequality. Piketty then examines the recent slide back towards capital-dominated wealth and its role in increased inequality, and extrapolates how this might lead to future critical inequality and social unrest. Finally, Piketty suggests various possible responses to stave off this crisis, with his preferred option being presented as a progressive system of tax on capital.

Keywords:

• economics
• capital
• inequality
• wealth
• income
• social policy

Disclaimer

No potential conflict of interest was reported by the author.

Notes on contributor

Stuart Morgan-Ayrs completed a postgraduate diploma in analysis, stress management counselling and clinical hypnotherapy with the Association of Stress Management. He has been in clinical practice since 1993, currently in Scotland. He has completed a range of post-qualification training, including an MSc in Psychology and university study in social policy, philosophy and politics. He is a Fellow of the Royal Scottish Society of Arts, the Royal Society of Public Health and the Institute of Health Promotion and Education, and an associate fellow of the Royal Society of Medicine. He can be contacted via his blog and website (www.psychoanalysis.center).