Dr. Thomas Piketty, a professor at the Paris School
of Economics, delves into the new gilded age where a smaller percentage of
people accumulate wealth while vast majorities struggle to make ends meet. The trend is continuing as those who hold
capital beyond their daily living expenses continue to become wealthier while
the incomes of others have failed to rise substantially to keep pace. Under current trends the problem will become
more pronounced and possibly destructive.
The book discusses the history of wealth and how during
World War I the top one percent owned approximately 1/5 of national wealth.
That number has dramatically changed over the decades with a much higher concentration
of wealth landing into fewer hands. Compounded wealth is becoming limited to
fewer people highlighting income disparity.
The gilded age comment shows how the capital of a
society is owned by too few people and this is being passed on from generation
to the next versus being earned on performance alone. This means that wealth is
not actually earned and those who are influencing the economic system to the
highest degrees are not necessarily the most skilled.
Most theorists do believe we have problem with
wealth distribution in society and the book does focus on this idea from an
analytical point of view. There are many ways in which such an analysis can be
conducted and academics may debate its scientific contribution to the debate. It is a large issue beyond the bounds of a
single work.
Scientific analysis is important but the real
contribution is to open new questions, debate outcomes, or develop vantage
points. How do we know if we have a problem unless someone thinks about it?
This book furthers the argument that additional effort is needed to ensure the
masses have real opportunities to succeed.
A society, much like a business, must have adequate
rewards within the system to help ensure that members are working toward the
benefits of the nation and themselves. When such incentives no longer exist and
excess capital cannot be individually accumulated motivation and trust decline.
This creates a difficult situation relived over and over in the small country towns
and sprawling cities of the country.
To add to his arguments for wealth distribution
small business has the potential to raise societal innovation, collective
intelligence, and wealth on a more uniform level. The political structure is
still focused on encouraging large corporations but with some well thought out
adjustments both the small business communities and large corporations can both
benefit. New opportunities create jobs and further societal motivation to
learn, adapt, and develop.
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