Move over Karl Marx and make room for French socialist economist, Thomas Piketty, whose best selling book, Capital, makes your Das Kapital so passe’.
Mr. Piketty has become an instant celebrity with the elite Leftards in Europe and the US and with the IMF. Why? Because his book supposedly proves that capitalism has caused all of the income and wealth inequality in the world. His solution, not surprisingly, is higher income taxes for the rich along with “wealth taxes”. You can see why the Leftards are falling all over this guy. They now believe they have the hammer to drive the nails into the coffin of capitalism and force equality and unicorns on the world.
You won’t be surprised to learn that Zero Hedge questions mister Piketty’s analysis of the cause of inequality. The author of the Zero Hedge article nicely hoist Mr. Piketty on his own petard; a graph from his book showing income inequality for Europe and the US since 1900. Looking at the US part of the graph, we see:
It shows the share of national income of the top decile of the population. It started the century at a bit above 40% and edged above 45% in the Roaring Twenties. It plunged during the Great Depression and edged down in World War II, and then steadied out, until we get to the 1970s. Something happened then that caused income inequality to start soaring. The top decile’s share of income went from something like 33% in 1971 to above 47% by 2010.
Gee! What dastardly plan did America’s capitalist put in place in 1971? Why are none of the Leftard economists (Hello, Paul Krugman! What say ye?) discussing this inflection point? Is it possible, as the Zero Hedge article suggest, that it has something to do with “Tricky Dick” Nixon replacing the gold backed dollar with fiat paper? Is it just a coincidence that since America went off the gold standard and the US dollar was crowned as the wworlds reserve currency, that we have had 43 straight years of trade deficits and we went from being the world’s greatest creditor nation to being the greatest debtor nation?
No doubt, the believers in unicorns will not see the cause and effect of Tricky Dick’s daibolical action. Your humble observer of the asylum we all have to live in has a warning for our Leftard friends: if you think a butt from a billy goat hurts, wait till you are butted by a unicorn.
Well, that’s what I’m thinking. What are your thoughts?