Thomas Pikketty made a riveting appearance on the on point podcast hosted by John Ashcroft. You can catch this great talk and a mini debate Mr Pikketty had with some nerd who disagreed with him and his statement of the illusion of Capitalism. In the twentieth century there were two major wars and destructions and the rate of return of capital to the top class was disrupted. Thomas Pikketty says a part of the capitalist system is that it only concentrates wealth to a very tiny percentage of people who distribute the power and wealth of corporations unequally across the spectrum of society and its important workers.
The rate of return to capital has always has a rising concentration of wealth to those rulers and leaders who have for generations been at the to of the income distribution. Pikketty sees this getting worse and the concentration of wealth actually endangers the democratic institutions that we have known. The importance of transparency in politics and government is crucial to see whose money is going to what projects that financially benefit them in the long term. Thomas Pikketty is the hottest economist right now and his opinions have got people talking about economics. Ashcroft brought in someone named Gregory Mankiw to argue with Pikketty and disagree with the fact that inequality is increasing and argue the point is because of the gap of knowledge in the new economy. This guy said wealth is disparaged because the rich can spend and spread their wealth for high luxury items as if this is somehow fair and right. Pikketty brought up the problem of this preserving wealth through generations with those lucky enough to be born into privilege and their rate of growth incomes is at the detrimental and living level conditions of those born in lower classes. The threat of tax on net wealth worried and Mankiw said the solution was getting low-income workers in a 401 k system where they will be at the mercy of finance advisers who have shown they have a high probability of losing the pools wealth if history is any indication at how these rats operate.
The idiot Mankiw said he family was able to come to Europe with nothing and make a name for themselves in America as if this was still available for today's immigrants than the ones in the forties. Pikketty made this guy look like a fool and I encourage all those interested in Thomas to check out this debate. Professor Mankiw shouldn't even be invited in the same room yet alone show with someone like the great Pikketty.
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