Source: Huffington Post
Piketty and rising inequality
We normally would not expect a seven-hundred-page scholarly tomb full of numbers and figures written by an academic to become an international bestseller. The success of Capital in the Twenty-First Century by Thomas Piketty indicates that the public discontent caused by the rising inequality in the modern capitalist societies may have reached a boiling point. The debate surrounding Capital has been intensely polarizing, inciting passionate responses from the intelligentsia of both the Left and the Right.
Inequality is a serious topic, and prominent economists including Paul Krugman and Joseph Stiglitz have also been voicing their concerns for years. Professor Stiglitz warned the world of the great magnitude of the damages caused by widening inequality, particularly in the aftermath of the global financial crisis.
The major point of the argument was that inequality is self-enforcing: the rich use their political influence to cut taxes and government spending, which leads to underinvestment in infrastructure, education and technology, which disproportionately affects the people at the bottom of the economic spectrum, further contributing to rise in inequality.