Reverend Thomas Malthus feared overpopulation would drive down wages and create political upheaval, so he recommended governments cutting off assistance to poor and limiting their reproduction! And he was a reverend!
Now, French superstar economist, the radical Thomas Piketty, fears "The relentless growth in the proportion of national income consumed by the state, spent on universal services, pensions and benefits is an irreversible feature of modern capitalism. Redistribution has become a question of "rights to" things – healthcare and pensions – rather than simply a problem of taxation rates." And I agree with Piketty in saying that this problem is because we live spoiled in America. I doubt there is much we can do to reverse that unlike Ricardo and Malthus. Going into Piketty's arguments, Paul Mason, writer for "theguardian" award-winning magazine, quotes, "He illustrate(s) how, by the early 19th century, it was logical to disdain work in favor of marrying into wealth. That it has become so again busts the central myth of, and moral justification for, capitalism: that wealth is generated by effort, ingenuity, work, wise investment, risk taking etc. Mason simplifies Piketty's argument saying, "The implications for capitalism are utterly negative: we face a low-growth capitalism, combined with high levels of inequality and low levels of social mobility. If you are not born into wealth to start with, life, for even for the best educated, will be like Jane Eyre without Mr Rochester. "
It's all about distribution a.k.a. inequality. (Here's my favorite part)
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| A slide from Piketty's TED presentation |
In a very small nutshell, it is our choice on how much wealth we have. According to Mason, "His solution is a specific, progressive tax on private wealth: an exceptional tax on capital, possibly combined with the overt use of inflation." Now most people I'd imagine wouldn't be too comfortable with full wealth transparency, higher taxes, or rolling up to the gas station one day and screaming, "Why is gas $50 more than yesterday?!" And I'd be a little bit angry as well if I was forced to give away my inheritance from my parents to total strangers under a government's control. Perhaps this is why Piketty is a "hit-or-miss" man for some, but no one can deny that unless we take a little "inequality medicine" in our private capitalist lives every now and then, there would be no reason to improve anything whilst basking in a thousand acre land of milk and honey, similarly to how those who desire the prize of heaven must face the difficult, and in many times "unfair", tests of faith to God in order to make us stronger.


















