From the review of Piketty's book it does seem that he has identified a major part of the problem. He has captured the fact that the middle class cannot get ahead in the current economic environment. Note the critical reason he cited as to why this is the case. Piketty's states that the cause is the fact that we live in an economy where the rate of return on capital outstrips the rate of growth this is the premise from which all his conclusions follow. How does the rate of return on capital outstrip the rate of growth? It can only do so through finance, fractional reserve, and debasement of the currency via government debt.
I don't think you'll get too much argument on this forum about the perils of FRB Coincube - although recession can be, and has been in the past, caused by other factors.
Piketty's solution of taxes is flawed just as Marx's solution of communism was flawed. Raising taxes just changes the victim from the less productive to the more productive while increasing the power and influence of the thief.
There were two things I took from the Pickety review by Paul Mason :- 1) gross inequality is the inevitable outcome of capitalism - whenever gross inequality isn't the case it is an aberration rather than the natural order of things and 2) inherited wealth always trumps wealth accumulated by hard work.
The 2nd point is one I've banged on about myself before several times on this forum. There have been many studies done to illustrate the US's appalling record on social mobility - please google it. The US (and the UK) is not the land of the free at all. Generally speaking, you don't achieve in the US according to your merit - rather your position at birth. A working class hero is something to be
.Whats the upshot of all this ? Well for one thing, to my eyes at least, it makes the argument for redistributive taxation (at the very least) much more compelling .
In regards to Anonymint, his theory on the .....Rise of Knowledge is an important insight . This insight is to the best of my knowledge unique
He doesn't owe anything to Rifkins (and others (Benkler et al)) work then ? It has to be said also that he does Rifkin a disservice.
It is the productive business people and entrepreneurs who will be hit hardest. Decimating your upper classes...... and an ever growing government are not a strategy for long term prosperity.
Try telling that to the Chinese - the economic success story of the last quarter century surely ?During the great depression, the leading economists of the day created the Chicago Plan where they advised the government to outlaw fractional reserve banking. The plan failed because it was politically easier to shift the debt and cost onto the government.
Well if you are suggesting we outlaw FRB then I don't think you'll find many detractors here Coincube. I must say, it seems to me that tighter regulation won't do the job and has been proven to have failed us already.
My solution personally would be :-
1) in an ideal world, instead of the UK taxpayer bailing out TBTF banks, the Government should have nationalised the banks and had them work in the interests of the UK population. This would have achieved the outlawing of FRB anyhow, which I feel you are in favour of. Instead, we nationalised the losses and left the profits and control in private hands.
2) Bitcoin
