Piketty's Capital in the 21st Century
5 Pages Posted: 7 Dec 2014
Date Written: December 5, 2014
In this review I focus on the second part of the book, which describes the ebb and flow of inequality in the 20th Century and tries to explain its decline in the period between 1910 and 1970, the so-called great compression, and its subsequent recovery. Most reviewers have attended to the first, which outlines the basic dynamics of the distribution of income and wealth; I have nothing to add to what has been said. As for the third part, which lays out an assortment of policy prescriptions intended to reduce or forestall increased inequality, it is just not as profound as the rest of the book. In contrast, part two is both intriguing and challenging and hasn’t really gotten the attention it deserves.
Keywords: Piketty, income, wealth, managerial capitalism, Fordism
JEL Classification: N00, P16, J38, M52
Suggested Citation: Suggested Citation