Piketty shows that behind this concentration of wealth and growing inequalities simple economic pri

I was one of the last generations, by the end of the 1980s at the Faculty of Economics still half-zaresno raped by Marxist political economy. Examination of the atrocious "political economy of socialism" in Tajnikar I managed to do only in the fourth ouval research attempt ouval research and it was the end of socialism, I am hoping that with Marx I'll never meet.
But apparently I was mistaken. In fact, Thomas Piketty of the Paris School of Economics is the most anticipated book of the year "Capital and the Twenty-First ouval research Century", which will be published in English in March this year, with the analysis of inequality in the capitalist market economy came to a rather similar findings as Karl Marx good 170 years before him. Piketty notes that the natural ouval research tendency of capitalism concentration of capital in the hands of a few owners of capital and an increase in inequality, which leads to politically unsustainable social tension.
Pikettyjevo book, which was released last year by the French, the world's leading economists and the media in reviews has been described as one of the most important ouval research economic books of recent decades. Branko Milanovic, an economist from the World Bank, which deals with inequality, he wrote an extensive review, which this year will be published in the prestigious Journal of Economic Literature. The Economist and New York Times have already published a very positive ouval research reviews
Thomas Piketty not kdorsibodi. He holds a PhD from EHESS Paris and London LSE, MIT was a lecturer and visiting professor, the publication has the top-5 best economic journals. Together with my colleagues Alvaredom, ouval research Atkinson and Saezom the decade collect data on income distribution based on tax data and on this basis, developed a comprehensive database ouval research incomes Database World Top 27 countries for the period mainly from 1920 onwards (database is updated, currently in production another 45 countries). By the way, the slogan of the Occupy Movement "We are the 99%" and motion information incomes above 1% and 0.1% have their origin also in this database, ouval research it is based on the methodology described in Pikettyjeve Paper of 2001 (the distribution ouval research of income France) and the 2003 survey, which was done by Thomas Piketty and Emmanuel Saez.
And it is this database for a large number of countries Pikettyju an insight into the historical ouval research evolution of the highest incomes across countries, and from it derive the key findings about the evolution of capitalism. It allowed him to make some kind of "general theory of capitalism".
Story provided by Piketty, is very simple (see the presentation of the book). The property (wealth) throughout history in most countries is concentrated. ouval research By the end of the 19th century, the share of wealth in the hands of above 10% in most developed countries gradually approached the level of 80-90%, the top 1% has gradually gained 50-60% of the total national wealth. The natural tendency of capitalism is thus the concentration of capital and wealth ... unless capitalism is what this process is not disturbed. In the second half of the 19th century were riots that led to the gradual increase in wages proleteriatu in the first half of the 20th century, ouval research both the war and in the meantime the Great Depression. These disruptions are - due to the need to finance increased public ouval research debt and the negative image of rich industrialists and financiers - led to a rise in taxes on the highest incomes (up to 90% or even 100%) and gains, which more than offset the income and wealth of the rich. But in the mid 1970s, ouval research the story began to turn the country have started to decline (from the time of the pre or during World War II elevated) high taxes on the highest income, capital gains and corporate profits - and capitalism is plotting a return to the old way, share of income above 10%, 1%, 0.1% started to rise sharply again.
Piketty shows that behind this concentration of wealth and growing inequalities simple economic principles: if the growth rates of return on capital is higher than the growth rate of GDP, will increase the share of capital in GDP. This is a simple accounting identity: if GDP is the sum of the incomes of capital and labor, then a higher rate of returns of capital from GDP growth rate automatically means increasing the share of capital income in GDP. Or in other words, when the returns on capital are rising faster than wages, wealth concentrated in the hands of the owners of capital, inequality is increasing. The following applies for illustrative to look at the bottom two images showing the growth rate of income and capital returns for the last 2000 years.
The picture above shows a comparison of the rate of return on equity before tax. It seems that the difference between the rate of growth of income and return on equity (before tax) in the middle of the 20th century significantly reduced, then the gap once again open up strong.
The figure below shows a comparison of the rate of return on equity after tax. From it's nice to show how the high taxation of top incomes, which was in force between the two world wars and until the mid-1970s, reduced real income