Arquivo para December 1st, 2014

The economy of Thomas Piketty

01 Dec

PikettyThe French Thomas Piketty is undoubtedly a reading in terms of the economic crisis, to publish his book “The capital in the 21st century”, this year he managed to touch the exposed wound of capitalism, but also the demagogic speeches of socialists and social democrats: inequality

Professor at the Paris School of Economics, Piketty cracked the role of inequality of income and wealth in the social structure configuration which we live, with rising inequality .

The British magazine The Economist called it “definitive guide on inequality”, as the Nobel Prize in Economics Robert Solow described it as having “a powerful contribution.

With extraordinary clarity it shows that we should not set solely on income inequality, but try to understand the systematic and methodical way, the story of wealth because it is made of interests and institutional mechanisms that maintain social structures and that is embodied in the policy governing our lives.

So your method is simple, the first is a theoretical framework of laws relating inequality to economic growth and return on capital employed, then shows the evidence from economic history of Europe and the United States, from the eighteenth century to confirm their hypotheses.

So he denies that this cycle is being broken or in Europe or in America and also includes Brazil, despite not having gained access to the actual data, which would be from the income tax, by national laws that guarantee their privacy data.