Statements Made at Piketty in the Twenty-First Century

In response to the increasing problem, Piketty proposes a global tax on capital as a way of dealing with income inequalities inherent in patrimonial capitalist societies. Even though he considers his idea as a utopia because it would be nearly impossible for the world’s nations to agree on such an arrangement in the near future, he suggests that there is a need “to establish a tax schedule applicable to all wealth around the world and then decide how to apportion the revenues”.

He adds that due to realistic problems and challenges that a global tax on capital would create, the idea can be implemented gradually from regional levels before working toward “closer cooperation among regions” to facilitate the realization of this ideal solution (p. 516). Notwithstanding the problems and challenges associated with a global tax on capital, Piketty’s proposal could be ideal in promoting equal and effectual political liberty for all citizens which, according to Rawls, is normally undermined by economic inequality.

In particular, Rawls believes that income and wealth can have a negative influence on equal and effectual political liberty, especially when the rich fund political parties and elections as this would result in private interests being promoted at the expense of public good.

Therefore, just like Rawls advocates for equal distribution of income and wealth as a way of realizing equal and effectual political liberty for all citizens, Piketty’s suggestion for a global tax on capital would be effective in guaranteeing such liberty because it promotes equal distribution of income and wealth.

Conclusion

The paper attempted to discuss and analyze the ideas and claims made in Piketty’s Capital in the Twenty-First Century. Despite the strong debate and criticism that Piketty’s claims have generated, they remain significant in understanding the important link between the economy and political equality in the society, especially in terms of how money can influence politics.

Based on the discussion in this paper, Piketty’s claim on the return of patrimonial capitalism is strongly supported by historical and comparative data. Additionally, the author rightly claims that the inherited wealth is a threat to democratic society as this rent based wealth could find its way into politics.

Lastly, Piketty’s suggestion for a global tax on capital is effective to the extent that it offers an ideal solution for achieving equal and effectual political liberty for all citizens; however, its implementation could be problematic.