• fatjohn

      by Published on 11-09-2014 10:27 AM

      In Europe the new economic sensation is a french guy named Thomas Pikkety author of capital in the 21st century.

      He talks often about income inequality, which I must say is really out of whack:
      https://www.youtube.com/watch?v=QPKKQnijnsM#t=372
      Here is Piketty itself on the topic: http://www.ted.com/talks/thomas_pike...ry?language=en

      Basically he's saying that the return on investment always outstrips the growth in income, which only was untrue during the interbellum and the follow up rebuilding of Europe/Japan. Now that the rebuilding of Europe and Japan happened, the growth started to wind down and due to this we see wealth inequality on the rise.

      However his solution for this is a wealth tax and thus wealth redistribution.

      I want to counter some of my friends on this topic and point out that monetary inflation through low interest rates and quantitative easing funnel money first to banks and the wealthy which thus means that the wealthy have access to this new money before market prices react to this new money and start to rise. And that this effect is a fuel for wealth inequality and has been exceptionally big in the last 5 years due to the QE of the FED and BOJ and the zero interest rates around the world.

      Does any of you know of good articles, videos or books to refer to when I present my argument?
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