Thomas Piketty on Capital in the Twenty-first Century

French economist Thomas Piketty, author of Capital in the Twenty-First Century, is of the view that in the long run the return on capital is greater than economic growth. If that be true then we have a mass transfer of wealth from the poor to the rich.

In Sacred EconomicsCharles Eisenstein  is of the view that the owners of capital in a system of usury, capital must accumulate to the owners of capital. With the implication we must have endless growth.

Read any classic literature, Charles Dickens Jane Austen, people invested their capital and lived off the interest, they did not need to work for a living, they could do as they wished all they needed was an allowance. Only those without any capital, without an allowance, were forced to work, for example as a governess.

Wealth inequality is always a lot worse than income inequality.

Neither situation is good, inequality and a wrecked planet.

During periods of growth, the poor see their wages increase, and do not notice the accumulation of wealth by the rich. During periods of zero growth, as we see now, the poor see their wages stagnate if not decrease, they then notice the level of inequality,and if the level of inequality is large and growing, have social unrest if not insurrection.

In a sharing society, gift economy, there is not an accumulation of wealth because the emphasis is on giving, sharing, not accumulating.

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