Capital in the 21st century book report
Publication Report of
" Capital in the twenty-first century"
University of Business Administration
2011-11204 Kim, Dongjun
The problems of inequality in distribution of wealth will always be social problems for nations around the world which used capitalism as their economic systems. Most people concur that monetary inequality is actually a threat to society, but in reality tend to contemplate it a major drivers which helps economic development and makes the economy work efficiently. My spouse and i also thought that monetary inequality is known as a necessary nasty and that it includes more rewards than costs. However , I had to change my viewpoint after i realized the gravity of its results and the fundamental problems of capitalism, which is stated in Jones Piketty's " Capital in the 21st century. вЂќ
The main idea of this book is quite basic but incredible. It explains logically so why financial gap between the abundant and poor gets greater when the rate of come back on capital is more than the rate of economic progress. Unlike a number of other studies conducted by microeconomists,
Piketty saved his claim with lots of
empirical facts which I think as its biggest strength. In lots of parts, I possibly could accept his idea with little feeling of level of resistance. I was aware of the huge power of capital especially after reading a book named " Currency Wars" written by Track Hongbing. Piketty verified my thoughts those who own huge capital can certainly earn huge amount of money, while it is extremely hard for low-income class to increase to higher classes. Nevertheless , I did not understand this was a structural difficulty of capitalistic system and realized that inequality will only worsen if the status quo continues.
Mass media often label stories of self-made men or women, telling all of us that even though you are not coming from rich relatives, you can make lot of money like these people. There are superstars of course , but Piketty says supermanagers mainly make up for the greatest class of economic structure. I realized it is not individuals who are to blame...