Capital in the Twenty-First Century: A Critical Review

Abstract

The author discusses Capital in the Twenty-First Century by Thomas Piketty, a book exploring the dynamics of capital, wealth and income and their trajectory in select advanced countries. Piketty draws his theory from substantial data included in governmental records on taxation, wealth, real estates and others, extending over a period of more than two centuries. Piketty concludes that these dynamics would certainly lead to concentration of wealth and as a result, income inequality. He suggests a series of measures to control wealth and income inequality by imposing a moderate cumulative tax on wealth, inheritance, income and consumption. Seifan discusses all of Piketty’s arguments. He concludes that Piketty did not create any new ideas, and that his suggestions are not sufficient to contain capitalism and prevent it from reinforcing the cycle of inequality.