Thomas Piketty Famous Quotes & Sayings

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100 Thomas Piketty Famous Sayings, Quotes and Quotation.

Thomas Piketty Sayings: There is a fundamentalist belief by capitalists that capital will save the world, and it There is a fundamentalist belief by capitalists that capital will save the world, and it just isn't so.
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Thomas Piketty Sayings: Once constituted, capital reproduces itself faster than output increases. The past devours the future. Once constituted, capital reproduces itself faster than output increases. The past devours the future.
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Thomas Piketty Sayings: To be sure, the cost of managing capital and of "formal" financial intermediation (that is, To be sure, the cost of managing capital and of "formal" financial intermediation (that is, the investment advice and portfolio management services provided by a bank or official financial institution or real estate agency or managing partner) is obviously taken into account and deducted from the income on capital in calculating the average rate of return (as presented here). But this is not the case with "informal" financial intermediation: every investor spends time - in some cases a lot of time - managing his own portfolio and affairs and determining which investments are likely to be the most profitable. This effort can in certain cases be compared to genuine entrepreneurial labor or to a form of business activity.
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Thomas Piketty Sayings: a very substantial and growing inequality of capital income since 1980 accounts for about one-third a very substantial and growing inequality of capital income since 1980 accounts for about one-third of the increase in income inequality in the United States - a far from negligible amount.
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Thomas Piketty Sayings: The only way to overcome these contradictions is for the countries of the Eurozone (or The only way to overcome these contradictions is for the countries of the Eurozone (or at any rate those who are willing) to pool their public debts.
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Thomas Piketty Sayings: I loved American universities. In many ways, they are better organized - certainly than French I loved American universities. In many ways, they are better organized - certainly than French universities.
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Thomas Piketty Sayings: In the first place, just as income tax returns allow us to study changes in In the first place, just as income tax returns allow us to study changes in income inequality, estate tax returns enable us to study changes in the inequality of wealth.
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Thomas Piketty Sayings: In contrast to what many people in Britain and the United States believe, the true In contrast to what many people in Britain and the United States believe, the true figures on growth (as best one can judge from official national accounts data) show that Britain and the United States have not grown any more rapidly since 1980 than Germany, France, Japan, Denmark, or Sweden. In other words, the reduction of top marginal income tax rates and the rise of top incomes do not seem to have stimulated productivity (contrary to the predictions of supply-side theory) or at any rate did not stimulate productivity enough to be statistically detectable at the macro level.
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Thomas Piketty Sayings: One way to have broader access to wealth is to reduce the tax on the One way to have broader access to wealth is to reduce the tax on the large group and increase the tax on the very top so concentration of wealth doesn't get to extreme levels.
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Thomas Piketty Sayings: Goldin and Katz have no doubt that increased wage inequality in the United States is Goldin and Katz have no doubt that increased wage inequality in the United States is due to a failure to invest sufficiently in higher education. More precisely, too many people failed to receive the necessary training, in part because families could not afford the high cost of tuition. In order to reverse this trend, they conclude, the United States should invest heavily in education so that as many people as possible can attend college.
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Thomas Piketty Sayings: political democracies that do not democratize their economic systems are inherently unstable. political democracies that do not democratize their economic systems are inherently unstable.
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Thomas Piketty Sayings: Taxation is not a technical matter. It is preeminently a political and philosophical issue, perhaps Taxation is not a technical matter. It is preeminently a political and philosophical issue, perhaps the most important of all political issues.
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Thomas Piketty Sayings: There is no escaping the fact, however, that social science research on the distribution of There is no escaping the fact, however, that social science research on the distribution of wealth was for a long time based on a relatively limited set of firmly established facts together with a wide variety of purely theoretical speculations.
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Thomas Piketty Sayings: For millions of people, "wealth" amounts to little more than a few weeks' wages in For millions of people, "wealth" amounts to little more than a few weeks' wages in a checking account or low-interest savings account, a car, and a few pieces of furniture. The inescapable reality is this: wealth is so concentrated that a large segment of society is virtually unaware of its existence, so that some people imagine that it belongs to surreal or mysterious entities. That is why it is so essential to study capital and its distribution in a methodical, systematic way.
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Thomas Piketty Sayings: My premise is not to tax to destroy the wealth of the wealthy; it's to My premise is not to tax to destroy the wealth of the wealthy; it's to increase the wealth of the bottom and the middle class.
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Thomas Piketty Sayings: In countries where income from labor is most equally distributed, such as the Scandinavian countries In countries where income from labor is most equally distributed, such as the Scandinavian countries between 1970 and 1990, the top 10 percent of earners receive about 20 percent of total wages and the bottom 50 percent about 35 percent.
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Thomas Piketty Sayings: If you have free trade and free circulation ofcapital and people but destroy the social If you have free trade and free circulation of
capital and people but destroy the social state and all forms of progressive taxation, the temptations of defensive nationalism and identity politics will very likely grow stronger than ever in both Europe and the United States. Note, finally, that the less developed countries will be among the primary beneficiaries of a more just and transparent international tax system.
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Thomas Piketty Sayings: If the twenty-first century turns out to be a time of low (demographic and economic) If the twenty-first century turns out to be a time of low (demographic and economic) growth and high return on capital (in a context of heightened international competition for capital resources), or at any rate in countries where these conditions hold true, inheritance will therefore probably again be as important as it was in the nineteenth century. An evolution in this direction is already apparent in France and a number of other European countries, where growth has already slowed considerably in recent decades. For the moment it is less prominent in the United States, essentially because demographic growth there is higher than in Europe. But if growth ultimately slows more or less everywhere in the coming century, as the median demographic forecasts by the United Nations (corroborated by other economic forecasts) suggest it will, then inheritance will probably take on increased importance throughout the world.
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Thomas Piketty Sayings: Everyone is political in his or her own way. Everyone is political in his or her own way.
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Thomas Piketty Sayings: It's not Utopian to believe that we can create a global registry of financial assets It's not Utopian to believe that we can create a global registry of financial assets so we know who owns what in different countries.
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Thomas Piketty Sayings: The U.S. is the country that invented progressive taxation of income and of inherited wealth The U.S. is the country that invented progressive taxation of income and of inherited wealth in the 1910s and '20s.
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Thomas Piketty Sayings: In the United States, the most recent survey by the Federal Reserve, which covers the In the United States, the most recent survey by the Federal Reserve, which covers the same years, indicates that the top decile own 72 percent of America's wealth, while the bottom half claim just 2 percent.
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Thomas Piketty Sayings: The reality was so striking that it even found expression in an animated cartoon, The The reality was so striking that it even found expression in an animated cartoon, The Aristocats, set in Paris in 1910. The size of the old lady's fortune is not mentioned, but to judge by the splendor of her residence and by the zeal of her butler Edgar to get rid of Duchesse and her three kittens, it must have been considerable.
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Thomas Piketty Sayings: Market forces and capitalism by themselves aren't sufficient to ensure the common good and to Market forces and capitalism by themselves aren't sufficient to ensure the common good and to limit the concentration of wealth at levels that are compatible with democratic ideals.
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Thomas Piketty Sayings: We know something about billionaire consumption, but it is hard to measure some of it. We know something about billionaire consumption, but it is hard to measure some of it. Some billionaires are consuming politicians, others consume reporters, and some consume academics...
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Thomas Piketty Sayings: I'm not as pessimistic as what a number of people seem to believe. I'm not as pessimistic as what a number of people seem to believe.
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Thomas Piketty Sayings: I don't think there is any serious evidence that we need to be paying people I don't think there is any serious evidence that we need to be paying people more than 100 times the average wage in order to get high-performing managers.
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Thomas Piketty Sayings: the income of nonwage workers is "mixed," because it combines income from labor with income the income of nonwage workers is "mixed," because it combines income from labor with income from capital. This is also referred to as "entrepreneurial income.
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Thomas Piketty Sayings: Progress in medicine together with improved living conditions has therefore, it is argued, totally transformed Progress in medicine together with improved living conditions has therefore, it is argued, totally transformed the very essence of capital.
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Thomas Piketty Sayings: These findings stand in sharp contrast to the belief in "American exceptionalism" that once dominated These findings stand in sharp contrast to the belief in "American exceptionalism" that once dominated US sociology, according to which social mobility in the United States was exceptionally high compared with the class-bound societies of Europe. No doubt the settler society of the early nineteenth century was more mobile. As I have shown, moreover, inherited wealth played a smaller role in the United States than in Europe, and US wealth was for a long time less concentrated, at least up to World War I. Throughout most of the twentieth century, however, and still today, the available data suggest that social mobility has been and remains lower in the United States than in Europe.
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Thomas Piketty Sayings: The Marikana tragedy calls to mind earlier instances of violence. At Haymarket Square in Chicago The Marikana tragedy calls to mind earlier instances of violence. At Haymarket Square in Chicago on May 1, 1886, and then at Fourmies, in northern France, on May 1, 1891, police fired on workers striking for higher wages. Does this kind of violent clash between labor and capital belong to the past, or will it be an integral part of twenty-first-century history?
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Thomas Piketty Sayings: The most striking fact is no doubt that in all these societies, half of the The most striking fact is no doubt that in all these societies, half of the population own virtually nothing: the poorest 50 percent invariably own less than 10 percent of national wealth, and generally less than 5 percent.
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Thomas Piketty Sayings: When you are an entrepreneur, you have founded your own firm, it is so easy When you are an entrepreneur, you have founded your own firm, it is so easy to find that you exist - you are the main shareholder of your company; it is very easy to look at the stock market position of your company to know how rich you are.
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Thomas Piketty Sayings: no mathematical formula or econometric estimate can tell us exactly what tax rate ought to no mathematical formula or econometric estimate can tell us exactly what tax rate ought to be applied to what level of income. Only collective deliberation and democratic experimentation can do that.
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Thomas Piketty Sayings: In 1860, the average price of a male slave of prime working age was roughly In 1860, the average price of a male slave of prime working age was roughly $2,000, whereas the average wage of a free farm laborer was on the order of $200.
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Thomas Piketty Sayings: Democracy will never be supplanted by a republic of experts - and that is a Democracy will never be supplanted by a republic of experts - and that is a very good thing.
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Thomas Piketty Sayings: the future could hold in store a new world of inequality more extreme than any the future could hold in store a new world of inequality more extreme than any that preceded it.
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Thomas Piketty Sayings: I want to be clear that at this stage I am not making a judgment I want to be clear that at this stage I am not making a judgment about whether a society of this kind really deserves to be characterized as "hypermeritocratic." It is hardly surprising that the winners in such a society would wish to describe the social hierarchy in this way, and sometimes they succeed in convincing some of the losers.
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Thomas Piketty Sayings: For individuals whose only capital is a small balance in a checking account, the return For individuals whose only capital is a small balance in a checking account, the return is negative, because such balances yield no interest and are eaten away by inflation. Savings accounts often yield little more than the inflation rate.
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Thomas Piketty Sayings: Yeah, I am in favor of migration. But I am also in favor of education. Yeah, I am in favor of migration. But I am also in favor of education. But at the same time, I am in favor of progressive taxation. I think we need all of this. I think we don't have to choose one.
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Thomas Piketty Sayings: Private property and the market system are good not only to promote innovation and to Private property and the market system are good not only to promote innovation and to promote growth; private property and the market system are good for our personal freedom.
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Thomas Piketty Sayings: the return on capital increases with the size of the initial endowment, the return on capital increases with the size of the initial endowment,
Thomas Piketty Sayings: Taxation is neither good nor bad in itself. Everything depends on how taxes are collected Taxation is neither good nor bad in itself. Everything depends on how taxes are collected and what they are used for.
Thomas Piketty Sayings: Economists tend to think they are much, much smarter than historians, than everybody. And this Economists tend to think they are much, much smarter than historians, than everybody. And this is a bit too much because at the end of the day, we don't know very much in economics.
Thomas Piketty Sayings: Capital is never quiet: it is always risk-oriented and entrepreneurial, at least at its inception, Capital is never quiet: it is always risk-oriented and entrepreneurial, at least at its inception, yet it always tends to transform itself into rents as it accumulates in large enough amounts - that is its vocation, its logical destination. What, then, gives us the vague sense that social inequality today is very different from social inequality in the age of Balzac and Austen? Is this just empty talk with no purchase on reality, or can we identify objective factors to explain why some people think that modern capital has become more "dynamic" and less "rent-seeking?
Thomas Piketty Sayings: (which did not exist before the creation of the income tax in 1913) (which did not exist before the creation of the income tax in 1913)
Thomas Piketty Sayings: When a country goes from a population of 3 million to a population of 300 When a country goes from a population of 3 million to a population of 300 million (to say nothing of the radical increase in territory owing to westward expansion in the nineteenth century), it is clearly no longer the same country.
Thomas Piketty Sayings: We want capitalism and market forces to be the slave of democracy rather than the We want capitalism and market forces to be the slave of democracy rather than the opposite.
Thomas Piketty Sayings: the higher returns of the largest endowments are not due primarily to greater risk taking the higher returns of the largest endowments are not due primarily to greater risk taking but to a more sophisticated investment strategy that consistently produces better results.
Thomas Piketty Sayings: Autarky has never promoted prosperity. Autarky has never promoted prosperity.
Thomas Piketty Sayings: Inequalities at the bottom of the US wage distribution have closely followed the evolution of Inequalities at the bottom of the US wage distribution have closely followed the evolution of thee minimum wage: the gap between the bottom 10 percent of the wage distribution and the overall average wage widened significantly in the 1980s, then narrowed in the 1990s, and finally increased again in the 2000s. Nevertheless, inequalities at the top of the distribution - for example, the share of total wages going to the top 10 percent -- increased steadily throughout this period. Clearly, the minimum wage has an impact at the bottom of the distribution but much less influence at the top, where other forces are at work.
Thomas Piketty Sayings: The bad news (or good news, depending on your point of view) is that things The bad news (or good news, depending on your point of view) is that things have always been like this.
Thomas Piketty Sayings: I think if you look back through time, the history of income, wealth and taxation I think if you look back through time, the history of income, wealth and taxation is full of surprise. So I am not terribly impressed by those who know in advance what will or will not happen.
Thomas Piketty Sayings: Protectionism does not produce wealth, and free trade and economic openness are ultimately in everyone's Protectionism does not produce wealth, and free trade and economic openness are ultimately in everyone's interest
Thomas Piketty Sayings: One can even imagine that inflation tends to improve the relative position of the wealthiest One can even imagine that inflation tends to improve the relative position of the wealthiest individuals compared to the least wealthy, in that it enhances the importance of financial managers and intermediaries. A person with 10 or 50 million euros cannot afford the money managers that Harvard has but can nevertheless pay financial advisors and stockbrokers to mitigate the effects of inflation. By contrast, a person with only 10 or 50 thousand euros to invest will not be offered the same choices by her broker (if she has one): contacts with financial advisors are briefer, and many people in this category keep most of their savings in checking accounts that pay little or nothing and/or savings accounts that pay little more than the rate of inflation.
Thomas Piketty Sayings: Indeed, the distribution of wealth is too important an issue to be left to economists, Indeed, the distribution of wealth is too important an issue to be left to economists, sociologists, historians, and philosophers.
Thomas Piketty Sayings: It's important to realize that innovation and growth in itself are not sufficient to moderate It's important to realize that innovation and growth in itself are not sufficient to moderate inequality of wealth.
Thomas Piketty Sayings: When it comes to decreasing inequalities of wealth for good or reducing unusually high levels When it comes to decreasing inequalities of wealth for good or reducing unusually high levels of public debt, a progressive tax on capital is generally a better tool than inflation.
Thomas Piketty Sayings: Sub-Saharan Africa, with a population of 900 million and an annual output of only 1.8 Sub-Saharan Africa, with a population of 900 million and an annual output of only 1.8 trillion euros (less than the French GDP of 2 trillion),
Thomas Piketty Sayings: When inequality gets to an extreme, it is completely useless for growth. When inequality gets to an extreme, it is completely useless for growth.
Thomas Piketty Sayings: I belong to a generation that came of age listening to news of the collapse I belong to a generation that came of age listening to news of the collapse of the Communist dicatorships and never felt the slightest affection or nostalgia for those regimes or for the Soviet Union. I was vaccinated for life against the conventional but lazy rhetoric of anticapitalism, some of which simply ignored the historic failure of Communism and much of which turned its back on the intellectual means necessary to push beyond it. I have no interest in denouncing inequality or capitalism per se - especially since social inequalities are not in themselves a problem as long as they are justified, that is, "founded only upon common utility," as article 1 of the 1789 Declaration of the Rights of Man and the Citizen proclaims.
Thomas Piketty Sayings: We know too little about global wealth dynamics, so we need international transmission of bank We know too little about global wealth dynamics, so we need international transmission of bank information.
Thomas Piketty Sayings: Our democratic societies rest on a meritocratic worldview, or at any rate a meritocratic hope, Our democratic societies rest on a meritocratic worldview, or at any rate a meritocratic hope, by which I mean a belief in a society in which inequality is based more on merit and effort than on kinship and rents. This belief and this hope play a very crucial role in modern society, for a simple reason: in a democracy, the professed equality of rights of all citizens contrasts sharply with the very real inequality of living conditions, and in order to overcome this contradiction it is vital to make sure that social inequalities derive from rational and universal principles rather than arbitrary contingencies. Inequalities must therefore be just and useful to all, at least in the realm of discourse and as far as possible in reality as well.
Thomas Piketty Sayings: The discipline of economics has yet to get over its childish passion for mathematics and The discipline of economics has yet to get over its childish passion for mathematics and for purely theoretical and often highly ideological speculation, at the expense of historical research and collaboration with the other social sciences.
Thomas Piketty Sayings: Economists have put themselves in a position where what they are doing is supposed to Economists have put themselves in a position where what they are doing is supposed to be impossible to understand for outsiders, so they don't even talk - sometimes not even with their girlfriend or boyfriend or friends - about what they are doing.
Thomas Piketty Sayings: I think inequality is fine, as long as it is in the common interest. The I think inequality is fine, as long as it is in the common interest. The problem is when it gets so extreme, when it becomes excessive.
Thomas Piketty Sayings: Income from labor [in the United States] is about as unequally distributed as has ever Income from labor [in the United States] is about as unequally distributed as has ever been observed anywhere.
Thomas Piketty Sayings: What is most frightening about Vautrin's lecture is that his brisk portrait of Restoration society What is most frightening about Vautrin's lecture is that his brisk portrait of Restoration society contains such precise figures. As I will soon show, the structure of the income and wealth hierarchies in nineteenth-century France was such that the standard of living the wealthiest French people could attain greatly exceeded that to which one could aspire on the basis of income from labor alone. Under such conditions, why work? And why behave morally at all? Since social inequality was in itself immoral and unjustified, why not be thoroughly immoral and appropriate capital by whatever means are available? The
Thomas Piketty Sayings: For far too long economists have sought to define themselves in terms of their supposedly For far too long economists have sought to define themselves in terms of their supposedly scientific methods. In fact, those methods rely on an immoderate use of mathematical models, which are frequently no more than an excuse for occupying the terrain and masking the vacuity of the content.
Thomas Piketty Sayings: In the top centile, by contrast, financial and business assets clearly predominate over real estate. In the top centile, by contrast, financial and business assets clearly predominate over real estate. In particular, shares of stock or partnerships constitute nearly the totality of the largest fortunes. Between 2 and 5 million euros, the share of real estate is less than one-third; above 5 million euros, it falls below 20 percent; above 10 million euros, it is less than 10 percent and wealth consists primarily of stock.
Thomas Piketty Sayings: It is not out of the question that the two forces of divergence will ultimately It is not out of the question that the two forces of divergence will ultimately come together in the twenty-first century. This has already happened to some extent and may yet become a global phenomenon, which could lead to levels of inequality never before seen, as well as to a radically new structure of inequality. Thus far, however, these striking patterns reflect two distinct underlying phenomena.
Thomas Piketty Sayings: I don't live in the Cold War. Some people maybe still live in the Cold I don't live in the Cold War. Some people maybe still live in the Cold War, but this is their problem, not mine.
Thomas Piketty Sayings: wealth in the rich countries is currently divided into two approximately equal (or comparable) parts: wealth in the rich countries is currently divided into two approximately equal (or comparable) parts: real estate and financial assets.
Thomas Piketty Sayings: At the heart of every major political upheaval lies a fiscal revolution. At the heart of every major political upheaval lies a fiscal revolution.
Thomas Piketty Sayings: When the rate of return on capital exceeds the rate of growth of output and When the rate of return on capital exceeds the rate of growth of output and income, as it did in the nineteenth century and seems quite likely to do again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based.
Thomas Piketty Sayings: As long as the incomes of the various classes of contemporary society remain beyond the As long as the incomes of the various classes of contemporary society remain beyond the reach of scientific inquiry, there can be no hope of producing a useful economic and social history.
Thomas Piketty Sayings: What I'm pushing for is an economic discipline that will be closer to other social What I'm pushing for is an economic discipline that will be closer to other social sciences; in particular, we should be more pragmatic about the methods that we are using instead of pretending that we have our own scientific apparatus with very sophisticated mathematic models that distinguish us from sociologists and historians.
Thomas Piketty Sayings: You need some inequality to grow ... but extreme inequality is not only useless but You need some inequality to grow ... but extreme inequality is not only useless but can be harmful to growth because it reduces mobility and can lead to political capture of our democratic institutions.
Thomas Piketty Sayings: There is also the idea, widespread among economists, that modern economic growth depends largely on There is also the idea, widespread among economists, that modern economic growth depends largely on the rise of "human capital." At first glance, this would seem to imply that labor should claim a growing share of national income. And one does indeed find that there may be a tendency for labor's share to increase over the very long run, but the gains are relatively modest:
Thomas Piketty Sayings: Contrary to a tenacious myth, France is not owned by California pension funds or the Contrary to a tenacious myth, France is not owned by California pension funds or the Bank of China, any more than the United States belongs to Japanese and German investors. The fear of getting into such a predicament is so strong today that fantasy often outstrips reality. The reality is that inequality with respect to capital is a far greater domestic issue than it is an international one.
Thomas Piketty Sayings: There is one great advantage to being an academic economist in France: here, economists are There is one great advantage to being an academic economist in France: here, economists are not highly respected in the academic and intellectual world or by political and financial elites. Hence they must set aside their contempt for other disciplines and their absurd claim to greater scientific legitimacy, despite the fact that they know almost nothing about anything.
Thomas Piketty Sayings: The right solution is a progressive annual tax on capital. This will make it possible The right solution is a progressive annual tax on capital. This will make it possible to avoid an endless inegalitarian spiral while preserving competition and incentives for new instances of primitive accumulation.
Thomas Piketty Sayings: The democratic ideal has always been related to a moderate level of inequality. I think The democratic ideal has always been related to a moderate level of inequality. I think one big reason why electoral democracy flourished in 19th century America better than 19th century Europe is because you had more equal distribution of wealth in America.
Thomas Piketty Sayings: showed that even with the considerable increase in the average level of education over the showed that even with the considerable increase in the average level of education over the course of the twentieth century, earned income inequality did not decrease. Qualification levels shifted upward: a high school diploma now represents what a grade school certificate used to mean, a college degree what a high school diploma used to stand for, and so on.
Thomas Piketty Sayings: Having a decent share of the national wealth for the middle class is not bad Having a decent share of the national wealth for the middle class is not bad for growth. It is actually useful both for equity and efficiency reasons.
Thomas Piketty Sayings: The concrete, physical reality of inequality is visible to the naked eye and naturally inspires The concrete, physical reality of inequality is visible to the naked eye and naturally inspires sharp but contradictory political judgments. Peasant and noble, worker and factory owner, waiter and banker: each has his or her own unique vantage point and sees important aspects of how other people live and what relations of power and domination exist between social groups, and these observations shape each person's judgment of what is and is not just. Hence there will always be a fundamentally subjective and psychological dimension to inequality, which inevitably gives rise to political conflict that no purportedly scientific analysis can alleviate.
Thomas Piketty Sayings: Modern redistribution is built around a logic of rights and a principle of equal access Modern redistribution is built around a logic of rights and a principle of equal access to a certain number of goods deemed to be fundamental.
Thomas Piketty Sayings: the function of the system of financial intermediation (banks and financial markets): to find the the function of the system of financial intermediation (banks and financial markets): to find the best possible uses for capital, such that each available unit of capital is invested where it is most productive (at the opposite ends of the earth, if need be) and pays the highest possible return to the investor.
Thomas Piketty Sayings: The dynamics of the global distribution of capital are at once economic, political, and military. The dynamics of the global distribution of capital are at once economic, political, and military. This was already the case in the colonial era, when the great powers of the day, Britain and France foremost among them, were quick to roll out the cannon to protect their investments. Clearly, the same will be true in the twenty-first century, in a tense new global political configuration whose contours are difficult to predict in advance.
Thomas Piketty Sayings: Conversely, younger people, in particular those born in the 1970s and 1980s, have already experienced Conversely, younger people, in particular those born in the 1970s and 1980s, have already experienced (to a certain extent) the important role that inheritance will once again play in their lives and the lives of their relatives and friends. For this group, for example, whether or not a child receives gifts from parents can have a major impact in deciding who will own property and who will not, at what age, and how extensive that property will be - in any case, to a much greater extent than in the previous generation. Inheritance is playing a larger part in their lives, careers, and individual and family choices than it did with the baby boomers.
Thomas Piketty Sayings: Inequality is not necessarily bad in itself: the key question is to decide whether it Inequality is not necessarily bad in itself: the key question is to decide whether it is justified, whether there are reasons for it.
Thomas Piketty Sayings: This leads to the idea of a race between education and technology: if the supply This leads to the idea of a race between education and technology: if the supply of skills does not increase at the same pace as the needs of technology, then groups whose training is not sufficiently advanced will earn less and be relegated to devalued lines of work, and inequality with respect to labor will increase. In order to avoid this, the educational system must increase its supply of new types of training and its output of new skills at a sufficiently rapid pace. If equality is to decrease, moreover, the supply of new skills must increase even more rapidly, especially for the least well educated.
Thomas Piketty Sayings: Among the members of these upper income groups are US academic economists, many of whom Among the members of these upper income groups are US academic economists, many of whom believe that the economy of the United States is working fairly well and, in particular, that it rewards talent and merit accurately and precisely. This is a very comprehensible human reaction.
Thomas Piketty Sayings: By comparing various sources of data, moreover, it is possible to estimate that the average By comparing various sources of data, moreover, it is possible to estimate that the average income of the parents of Harvard students is currently about $450,000, which corresponds to the average income of the top 2 percent of the US income hierarchy.32 Such a finding does not seem entirely compatible with the idea of selection based solely on merit. The contrast between the official meritocratic discourse and the reality seems particularly extreme in this case. The total absence of transparency regarding selection procedures should also be noted.33
Thomas Piketty Sayings: monopsony" rather than monopoly), in which case the owner of capital can impose a rate monopsony" rather than monopoly), in which case the owner of capital can impose a rate of return greater than the marginal productivity of his capital.
Thomas Piketty Sayings: What I argue for is a progressive tax, a global tax, based on the taxation What I argue for is a progressive tax, a global tax, based on the taxation of private property.
Thomas Piketty Sayings: In the long run, the best way to reduce inequalities with respect to labor as In the long run, the best way to reduce inequalities with respect to labor as well as to increase the average productivity of the labor force and the overall growth of the economy is surely to invest in education.
Thomas Piketty Sayings: Refusing to deal with numbers rarely serves the interests of the least well-off. Refusing to deal with numbers rarely serves the interests of the least well-off.
Thomas Piketty Sayings: one would expect to see a flow of investments in Africa from other countries, especially one would expect to see a flow of investments in Africa from other countries, especially China and other Asian nations.
Thomas Piketty Sayings: To be sure, there exists in principle a quite simple economic mechanism that should restore To be sure, there exists in principle a quite simple economic mechanism that should restore equilibrium to the process: the mechanism of supply and demand. If the supply of any good is insufficient, and its price is too high, then demand for that good should decrease, which should lead to a decline in its price. In other words, if real estate and oil prices rise, then people should move to the country or take to traveling about by bicycle (or both). Never mind that such adjustments might be unpleasant or complicated; they might also take decades, during which landlords and oil well owners might well accumulate claims on the rest of the population so extensive that they could easily come to own everything that can be owned, including rural real estate and bicycles, once and for all.3 As always, the worst is never certain to arrive. It is much too soon to warn readers that by 2050 they may be paying rent to the emir of Qatar.