Paul L. Caron

Tuesday, January 12, 2021

This Economist Has A Radical Plan To Solve Wealth Inequality

Wired, This Economist Has a Radical Plan to Solve Wealth Inequality:

CapitalPiketty’s 753-page book Capital in the Twenty-First Century, published in 2013, sold 2.5 million copies worldwide and helped put inequality on the global agenda. But his latest, the even thicker Capital and Ideology, may prove still more influential. The book is nothing less than a global history of inequality and the stories that societies tell to justify it, from pre-modern India to Donald Trump’s US. It arrives just as anger about inequality (some of it generated by Piketty’s work) approaches boiling point, and was channelled by a contender for the White House, Bernie Sanders.

Capital and Ideology builds on Piketty’s long-standing argument that inequality has soared across the world since 1980. It proposes strong remedies. Piketty wants to slap wealth taxes of 90 per cent on any assets over $1 billion, and waxes nostalgic about the postwar decades when British and American top marginal income-tax rates were over 80 per cent. ...

In an era when technology platforms are arguably concentrating wealth in the hands of a diminishing number of people in the Valley, Piketty’s advocacy of much higher taxes has attracted the attention of both progressives and radicals around the world. ...

Piketty is an optimist. His data shows rising equality in the long run. “You see the rise of progressive taxation and the decline of inequality,” he says. “The greatest successes in the history of mankind have been the construction of this equitable tax system, the founding of a public education system, public health system.”

(Hat Tip: Ted Seto.)

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