Piketty is troubled by the accumulation of capital in private hands, but he is by contrast relaxed about the accumulation of public capital. Sovereign wealth funds, which are by far the largest heaps of capital in the modern world, are given brief (five pages — less than 1 per cent of the book) and quite indulgent treatment: yes, they may in the medium term pose political problems, but there is no need to worry overmuch about that now is the gist of what Piketty says on that subject.
This equanimity is striking. Its root cause finds expression also in Piketty's preferred remedy for the "globalised patrimonial capitalism" he has diagnosed, namely a progressive global tax on capital. Piketty admits that this expedient is not imminent:
One would like to think that "utopian" there was a slip for "dystopian". Does the prospect of the governments of the world getting their hands on a pot of money as large as the yield of this tax not make your blood run cold? For Piketty, however, the only problems a global tax on capital poses are the irritating technical challenges of compiling the schedule and then dividing up the spoils. The prospect of the world becoming a single dreary fiscal prison is, it seems, not a problem. No sane person ever denied either that freedom has its pains, or that servitude has its comforts. Piketty's disposition appears to incline him away from the former and towards the latter.
Nevertheless, like the radicals of the 1790s, who toasted Edmund Burke in gratitude for the fundamental debate his writings on the French Revolution had provoked, even those who find Piketty's remedies unpalatable and in some ways worse than the disease he is trying to cure should nevertheless applaud his industry, his acuity, and his humane commitment to the ideal of rational, temperate and informed public debate.
This equanimity is striking. Its root cause finds expression also in Piketty's preferred remedy for the "globalised patrimonial capitalism" he has diagnosed, namely a progressive global tax on capital. Piketty admits that this expedient is not imminent:
A global tax on capital is a utopian idea. It is hard to imagine the nations of the world agreeing on any such thing anytime soon. To achieve this goal, they would have to establish a tax schedule applicable to all wealth around the world and then decide how to apportion the revenues.
One would like to think that "utopian" there was a slip for "dystopian". Does the prospect of the governments of the world getting their hands on a pot of money as large as the yield of this tax not make your blood run cold? For Piketty, however, the only problems a global tax on capital poses are the irritating technical challenges of compiling the schedule and then dividing up the spoils. The prospect of the world becoming a single dreary fiscal prison is, it seems, not a problem. No sane person ever denied either that freedom has its pains, or that servitude has its comforts. Piketty's disposition appears to incline him away from the former and towards the latter.
Nevertheless, like the radicals of the 1790s, who toasted Edmund Burke in gratitude for the fundamental debate his writings on the French Revolution had provoked, even those who find Piketty's remedies unpalatable and in some ways worse than the disease he is trying to cure should nevertheless applaud his industry, his acuity, and his humane commitment to the ideal of rational, temperate and informed public debate.
Like this article? Share, save or print using the icons below:
10:06 AM