Thomas Piketty Quotes (24 quotes) | Quotes of famous people

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Capital in the Twenty-First Century

Thomas Piketty

Thomas Piketty: 24 quotes 1 like

Famous Thomas Piketty Quotes

“National income is defined as the sum of all income available to the residents of a given country in a given year, regardless of the legal classification of that income.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 43.

“The main lesson for Europe and the world is clear: as a matter of urgency, globalization must be fundamentally re-oriented. The main challenges of our times are the rise in inequality and global warming. We must therefore implement international treaties enabling us to respond to these challenges and to promote a model for fair and sustainable development. Agreements of a new type can, if necessary, include measures aimed at facilitating these exchanges. But the question of liberalizing trade should no longer be the main focus. Trade must once again become a means in the service of higher ends. It never should have become anything other than that.”

Thomas Piketty

We must rethink globalization, or Trumpism will prevail (16 November 2016)

“Economists are all too often preoccupied with petty mathematical problems of interest only to themselves. This obsession with mathematics is an easy way of acquiring the appearance of scientificity without having to answer the far more complex questions posed by the world we live in.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 32.

“A balanced treaty between Canada and Europe, aimed at promoting a partnership for fair and sustainable development, should begin by specifying the emission targets of each signatory and the practical commitments to achieve these.”

Thomas Piketty

We must rethink globalization, or Trumpism will prevail (16 November 2016)

“I can now present the first fundamental law of capitalism, which links the capital stock to the flow of income from capital. The capital/income ratio β is related in a simple way to the share of income from capital in national income, denoted α. The formula is
α = r × β
Where r is the rate of return on capital.
For example, if β=600% and r = 5%, then α = r × β = 30%.
In other words, if national wealth represents the equivalent of six years of national income, and the rate of return on capital is 5 percent per year, then capital’s share in national income is 30 percent.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 52.

“We know something about billionaire consumption, but it is hard to measure some of it. Some billionaires are consuming politicians, others consume reporters, and some consume academics.”

Thomas Piketty

Quoted in Chuck Collins, Nit-Picking Piketty http://inequality.org/nitpicking-piketty/ (2015).
At ASSA http://events.mediasite.com/Mediasite/Play/b6d6725ea1df49c896fc82465f732e9b1d, 01:40:27.

Thomas Piketty Quotes about wealth

“Whenever the rate of return on capital is significantly and durably higher than the growth rate of the economy, it is all but inevitable that inheritance (of fortunes accumulated in the past) predominates over saving (wealth accumulated in the present). … The inequality r > g in one sense implies that the past tends to devour the future: wealth originating in the past automatically grows more rapidly, even without labor, than wealth stemming from work, which can be saved. Almost inevitably, this tends to give lasting disproportionate importance to inequalities created in the past, and therefore to inheritance.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 377.

“How do wealth-income and capital-output ratios evolve in the long run, and why? Until recently it was difficult to properly address this question, for one simple reason: national accounts were mostly about ﬂows, not stocks. Economists had at their disposal a large body of historical series on ﬂows of output, income and consumption – but limited data on stocks of assets and liabilities. When needed, for example for growth accounting exercises, estimates of capital stocks were typically obtained by cumulating past ﬂows of saving and investment. This is ﬁne for some purposes, but severely limits the set of questions one can ask.”

Thomas Piketty

Piketty, Thomas, and Gabriel Zucman. Capital is back: Wealth-income ratios in rich countries, 1700-2010 http://piketty.pse.ens.fr/files/PikettyZucman2013WP.pdf. Centre for Economic Policy Research, 2013.

“I am trying to put the distributional question and the study of long-run trends back at the heart of economic analysis. In that sense, I am pursuing a tradition which was pioneered by the economists of the 19th century, including David Ricardo and Karl Marx. One key difference is that I have a lot more historical data. With the help of Tony Atkinson, Emmanuel Saez, Facundo Alvaredo, Gilles Postel-Vinay, Jean-Laurent Rosenthal, Gabriel Zucman and many other scholars, we have been able to collect a unique set of data covering three centuries and over 20 countries. This is by far the most extensive database available in regard to the historical evolution of income and wealth. This book proposes an interpretative synthesis based upon this collective data collection project.”

Thomas Piketty

Eduardo Porter, " Q&A: Thomas Piketty on the Wealth Divide http://economix.blogs.nytimes.com/2014/03/11/qa-thomas-piketty-on-the-wealth-divide/?_php=true&_type=blogs&_r=0," economix.blogs.nytimes.com, March 11, 2014.
In answer of the question: "Your book fits oddly into the canon of contemporary economics. It focuses not on growth and its determinants, but on how the spoils of growth are divided. In that sense, it reminds us of similar concerns in a book of similar title written 150 years ago: Karl Marx’s “Capital.” What parallels would you draw between the two?"

“The distribution of wealth is one of today’s most widely discussed and controversial issues. But what do we really know about its evolution over the long term? Do the dynamics of private capital accumulation inevitably lead to the concentration of wealth in ever fewer hands, as Karl Marx believed in the nineteenth century? Or do the balancing forces of growth, competition, and technological progress lead in later stages of development to reduced inequality and greater harmony among the classes, as Simon Kuznets thought in the twentieth century? What do we really know about how wealth and income have evolved since the eighteenth century, and what lessons can we derive from that knowledge for the century now under way?”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 1 Introduction: Lead paragraph; Quoted in From the Introduction to Capital in the Twenty-First Century, by Thomas Piketty http://www.hup.harvard.edu/features/capital-in-the-twenty-first-century-introduction.html, at hup.harvard.edu, 2014.

“The overall importance of capital today, as noted, is not very different from what it was in the eighteenth century. Only its form has changed: capital was once mainly land but is now industrial, financial, and real estate. We also know that the concentration of wealth remains high, although it is noticeably less extreme than it was a century ago. The poorest half of the population still owns nothing, but there is now a patrimonial middle class that owns between a middle and a third of total wealth, and the wealthiest ten percent now own only-two thirds of what there is to own rather than nine-tenths.”

Thomas Piketty book Capital in the Twenty-First Century

Source: Capital in the Twenty-First Century (2013), p. 377; As cited in: " Thomas Piketty Capital in the twenty first century‎ Part III http://robertpaulwolff.blogspot.nl/2014/03/thomas-piketty-capital-in-twenty-first_30.html" on robertpaulwolff.blogspot.nl, 2014/03.