Intensifying accumulation of wealth and a deepening gap, or the “teething troubles” of capitalism

Cseh, Árpád (2015) Intensifying accumulation of wealth and a deepening gap, or the “teething troubles” of capitalism. Public Finance Quarterly = Pénzügyi Szemle, 60 (3). pp. 396-405.

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Capital in the Twenty-First Century is an analysis that draws on the synergies arising from the integration of the collected historical data series and the applied economics methods and attempts to best understand the correlations among capital accumulation, economic growth, and increasing income and wealth inequalities, and the underlying drivers determining these. After a review and analysis of the relevant historical data series, Thomas Piketty concludes that what ultimately plays a key role in the growth of wealth inequalities is that in the long run the rate of return on capital is higher than economic growth, hence wealth accumulated in the past grows at a higher pace than the growth of the economy (or the proportional growth of labour incomes). The author suggests the possibility of progressive wealth taxes to be implemented at global level in order to resolve the problems described in the book. Piketty, however, admits that for the time being this is no more than a utopian idea which has little to do with reality. This article sets out to provide a critical overview of Thomas Piketty’s book, as well as some articles and analyses of interest that have been published in this respect, focusing on the study of the problematics of rising wealth inequalities.

Item Type:Article
Uncontrolled Keywords:income inequalities, wealth inequalities, capital/income ratio, capital accumulation, global progressive property tax
JEL classification:D31 - Personal Income, Wealth, and Their Distributions
D33 - Factor Income Distribution
E25 - Aggregate Factor Income Distribution
N30 - Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative
P16 - Capitalist Institutions; Welfare State
ID Code:8839
Deposited By: Alexa Horváth
Deposited On:18 Sep 2023 08:14
Last Modified:18 Sep 2023 08:14

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