Thomas Pikkety’s book on Wealth Inequality is being discussed widely
A recently published book “Capital in the twenty-first century” by a French economist, Thomas Pikkety, has become a best-seller and is generating a lot of debate. Some state that it is the most significant book on economics that has been published for over seventy years (i.e. since John Maynard Keynes wrote “A General Theory of Employment, Interest and Money”).
In class, we have dealt with income inequality rather than wealth inequality (remember that “wealth” is the stock concept corresponding to the flow concept of “income”). But inequality in wealth is probably more significant, both because it is far more unequally distributed than income and because those who hold a lot of wealth are able to generate very high incomes for themselves and their children. In addition to the interest and profits earned from holding wealth (whether in the form of monetary assets, or land, or real capital–machinery, buildings, firms etc), the wealthy can afford more expensive schooling and may have easier access to high-status and high-paying jobs.
This video explains the main thesis of the book in quite simple terms
Following is an interview with Thomas Pikkety .
You can enjoy his French accent while learning! In particular, notice that he discusses the correlation (positive or negative?) between economic growth and inequality.