Capital in the Twenty-First Century – Thomas Piketty
1. Full Citation
Piketty, T. (2013) Capital in the Twenty-First Century. Translated by Arthur Goldhammer. Cambridge, MA: Harvard University Press.
2. Introduction
Capital in the Twenty-First Century is a groundbreaking economic analysis of wealth and income inequality by French economist Thomas Piketty. Utilizing extensive historical data, Piketty demonstrates that the rate of return on capital tends to exceed economic growth, leading to increasing concentration of wealth unless countered by progressive taxation and policy intervention. The book has sparked worldwide debate on economic inequality and policy responses in modern capitalist societies.
3. Author Background and Credentials
Thomas Piketty is a French economist and professor at the Paris School of Economics, known for his empirical research on wealth distribution and inequality. His work combines historical data analysis with economic theory, making him one of the most influential economists of the 21st century.
4. Summary of Contents
Major themes include:
- Historical Evolution of Wealth and Income Distribution
- Documents long-term trends in inequality from the 18th century to present.
- The r > g Mechanism
- Argues that when the return on capital (r) exceeds economic growth (g), wealth concentration intensifies.
- Capital and Inheritance
- Highlights the role of inherited wealth in perpetuating inequality.
- Policy Recommendations
- Advocates for progressive global wealth taxes and transparency to reduce disparities.
- Data-Driven Analysis
- Employs extensive data sets covering multiple countries and centuries.
5. Critical Evaluation
a. Coherence and Argumentation
Piketty presents a clear, data-supported thesis with strong empirical and theoretical foundations.
b. Originality and Intellectual Contribution
The book revitalizes the study of inequality with unprecedented scope and data analysis.
c. Evidence, Sources, and Method
Utilizes historical tax records, income data, and wealth surveys in a comprehensive empirical approach.
d. Style and Accessibility
Written in scholarly yet accessible prose, the book is suitable for academics and informed readers.
e. Limitations and Critiques
Some critics challenge Piketty’s assumptions and policy prescriptions, questioning feasibility and data interpretations.
6. Comparative Context
Compared with:
- Karl Marx’s Das Kapital – Both analyze capital’s role in inequality, but Piketty employs empirical modern data
- David Graeber’s Debt – Focuses on historical social relations of debt, complementing Piketty’s economic data
- Joseph Stiglitz’s The Price of Inequality – Both advocate policy responses to inequality
7. Thematic or Disciplinary Relevance
Central to:
- Inequality and wealth distribution studies
- Economic history and development economics
- Public policy and taxation
- Political economy
8. Reflection or Practical Application
The book informs debates on economic justice, tax policy, and sustainable economic growth worldwide.
9. Conclusion
Capital in the Twenty-First Century is a monumental contribution to economic literature, offering vital insights into the persistence and dynamics of inequality in capitalist economies.
Recommended for: Economists, policymakers, sociologists, and students of economic inequality and development.
10. Other Works by the Same Author
- The Economics of Inequality (1997)
- Top Incomes over the Twentieth Century (co-authored, 2003)
- Various research articles on capital and inequality
11. Similar Books by Other Authors
- Joseph Stiglitz – The Price of Inequality
- Anthony Atkinson – Inequality: What Can Be Done?
- Emmanuel Saez & Gabriel Zucman – The Triumph of Injustice
- Thomas Piketty – Capital and Ideology
12. References (only if external works are cited)
- Piketty, T. (2013) Capital in the Twenty-First Century
- Stiglitz, J.E. (2012) The Price of Inequality
- Atkinson, A.B. (2015) Inequality: What Can Be Done?