One sentence summary
Capital in the Twenty First Century, written by Thomas Piketty, explores the dynamic economic and political forces shaping the distribution of wealth and economic inequality in the modern age.
Book genre
Capital in the Twenty First Century is a book of economics and political philosophy.
Main topic of the book
The book’s main topic is the distribution of wealth and economic inequality in modern economies, and the economic and political forces that shape it.
Key ideas
- The unequal distribution of wealth is the main economic challenge of our times.
- Income inequality is caused by rising economic returns on capital, which in turn promotes more inequality in asset ownership and economic opportunities.
- The majority of wealth is owned by a small percentage of the population.
- The unequal distribution of wealth is a structural problem that cannot be solved by simply increasing economic growth.
- Inequality is perpetuated by the concentration of inherited wealth.
- The political aristocracy of Europe is the most extreme example of the global trend of inequality.
- Global taxation is a necessary step to reduce inequality and promote economic growth.
Main parts of the book and a short summary
- Part 1: focuses on the history of wealth and its unequal distribution. The first part of the book is divided into chapters such as wealth and income inequality, capital/labor share, redistribution and fiscal policy, and inheritance. Using data from multiple countries, Piketty shows how inequality has grown over centuries and how modern economic forces such as globalization have amplified its effects.
- Part 2: covers the structural reasons for inequality and how it can be addressed. In this section of the book, Piketty addresses the causes of inequality, its potential long-term economic effects, and how it relates to politics and the distribution of political power. He proposes various solutions to address inequality, such as progressive taxation, a global wealth tax, and regulations on inheritance, labor and capital.
- Part 3: is focused on tackling intergenerational inequality. In this section, Piketty dives deeper into the structural dynamics between generations and how inheritances have a large impact on economic and political inequality. He argues that the inheritance of ownership over financial assets should be significantly reduced by means of global taxation.
Key takeaways
- Inequality is a major economic challenge of our times and it is caused by global economic forces that have amplified its effects.
- Inequality is largely determined by the unequal ownership of financial assets and structural factors, and cannot be solved by increasing economic growth.
- Global progressive taxation, as well as regulations on inheritances, labor and capital, are needed to reduce inequality and promote economic growth.
Author’s background and qualifications
Thomas Piketty is a French economist and professor at the Paris School of Economics. He is the author of several books focusing on economic and political inequalities, and he is one of the world’s leading experts on inequality.
Target audience
Capital in the Twenty First Century is aimed at readers interested in economics, political philosophy, and issues of inequality. It is particularly useful for economists, policy makers, and those involved in public policy.
Publisher and first publication date
Capital in the Twenty First Century was published in 2013 by Harvard University Press.