Thomas Piketty

Posted: October 19, 2014
By: Clay Cerny

 

Conservatives carp about Americans who “depend on the government.” What they don’t say is that most of these people are working. Between an unlivable minimum wage and jobs that offer less than 40 hours, they qualify for government programs to support with food, housing, and medical care. They aren’t living lives of luxury.

Who really benefits from this system? Large corporations and the investor class who rely on working people to underwrite the subhuman salaries they pay. Laura Clawson of Daily Kos explains how raising the minimum wage would help workers while lowering the deficit. Meanwhile, in Wisconsin, Governor Scott Walker says, says we shouldn’t talk about the minimum wage because it’s not a real issue. Is the family where both parents work two jobs just to get by a real issue?

Democrats are far from perfect, but they’re the best bet working people and the middle class have in this new age of Robber Barons and the slaves they have representing them in federal, state, and local government. There is nothing conservative about rigging the system to make the wealthiest even richer. We need a wealth tax.

 

Posted: October 14, 2014
By: Clay Cerny

 

Huffington Post reports that inequality in the U.S. is at a wider point than it has been since the Great Depression. Does this mean that we’re on the way to a new crash? I hope not. HuffPo points to the popularity of Thomas Piketty as a reason for hope. The problem I see is that too many Americans have been trained to think all taxes are bad. The super-rich and large corporations have used their lawyers and lobbyists to game the tax system. I don’t see any way that will change any time soon. Americans are too easily distracted by “crisis” stories like Ebola and ISIS. Income inequality affects all of us, especially those under 35. Maybe a crash is the only thing that will wake up Americans.

Posted: April 20, 2014
By: Clay Cerny

 

Common Dreams is one of my favorite websites for understanding our world. Today it reposts an article by Jeff Faux that examines a very hot book, Capital in the Twenty-first Century by Thomas Piketty. The book’s thesis is pretty simple: the rewards of capitalism are now flowing to very few people. After WWII, the opposite was true. Economic expansion built the middle class in America and allowed Europe and Japan to rebuild after a terrible war. Poverty in America shrank. Now the opposite is true. Even though workers are more productive, their pay has declined.

Piketty claims that capitalist growth is fueling income inequality. Looking at capitalist societies over 300 years, he finds that most periods of growth increased inequality. The post-war period in the U.S was an outlier. Piketty refutes the claim that markets are self-correcting. Instead, they benefits most often go to those who do not have to work for a living (big investors, capitalists). Faux is careful to point out that Piketty is not a radical, that he is closer to Keynes than Marx. What excites me about a book like this is that it will challenge the way people think. It will force people to reexamine accepted wisdom, which is often the first step to real change.

PS: In Daily Kos, Mark Sumner criticizes Ross Douthat’s attempt to pooh-pooh Pikkety’s book.