Capital

In the Twenty-First century By; Thomas Piketty This is an incredible book of research and discovery. It is 753 pages of data and information that he has gathered from the i8th, 19th and 20 centuries and ends in 2010. It was published in 2013. For a layman like me it was difficult to comprehend as it went from place to place. It took me three weeks to finish. I had to stop to try to retain what I thought I had learned. He has reams of info from France, England, Germany, America and other countries. It includes a chapter on the European Union and their decision to create a common currency (the Euro). The main issue for me was the fact that thru out recorded history there has always been a few people at the top owning 60% or more of Capital assets while the lowest 50% own virtually nothing. During World War I and II, drastic measures were taken thru taxation and because of the destruction of buildings, factories, etc. which had the effect of equalizing incomes. During WWII, F.D.R. imposed 90% income tax on income over $25,000. He reasoned that no one should profit from a war when 12 million of our men were in uniform risking their lives for our country. I only intend to emphasize the years from WWII to today and beyond. What has gone on before is of interest but my concern is the future. I will be adding my thoughts as it relates to 2018. The tax cuts approved last year had a favorable effect on most everyday working and retired people. Take home pay has increased and the loss of American jobs has lessened. That was good as far as it went but much more needs to be done to correct the obvious distortion with the top one percent and ten percent owning so much. He points out that the very rich have the means to add 6 to 7% to their wealth on an annual basis while the next level down adds 4to 5% all of which is far and above what even those of us with means can earn while the bottom does not benefit at all. The only way to correct is by increasing the taxes and limiting inheritance for this select group. This is extremely hard to do as actions taken by one country can have capital sent from there to other countries with lessor taxes. Coordinating on a world wide scale could solve this problem. He is not optimistic that this will ever occur. In the meantime he suggests small increases sufficient to stop the ever spiraling increase in wealth at the top. This would leave the very rich with their fortunes but at least it would stop them from growing. If this is not brought under control chaos could result. He is also a believer in global warming and the negative consequence if not corrected. The ultra-rich princes in Saudi Arabia, Qatar and the other oil rich countries, continues to distort worldwide wealth. A massive effort towards attaining renewable energy sources to replace oil would have the secondary effect of decreasing this distortion. I don’t recommend reading except for those in a position to understand and initiate corrective action. This book has five pages by respected persons and organizations applauding Mr. Piketty’s outstanding achievement. It seems so simple to me. All it takes is the courage to take the recommended steps. Jack B. Walters August 18, 2018