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A Review on ‘Capital in the 21th Century’
Psychology and Behavioral Sciences
Volume 3, Issue 6, December 2014, Pages: 207-211
Received: Nov. 16, 2014; Accepted: Dec. 4, 2014; Published: Dec. 16, 2014
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Bodo Herzog, Department of Economics, Reutlingen, Germany; ESB Business School, Reutlingen University, Reutlingen, Germany; RRI Reutlingen Research Institute, Reutlingen, Germany
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This paper is a brief review on the book ‘Capital in the Twenty-First Century’ by the French scholar Thomas Piketty. The book has started a new debate about inequality and capital taxation in Europe. It provides interesting empirical facts and develops a theory of the functioning of capitalist economies. However, I personally think the book is less convincing than recognized in the public debate. The demonstrated theory of economic growth in the book is elusive and lacks a psychological and behavioral underpinning. In fact, I do think that the increasing inequality and economic divergence are caused by capitalism but the psychological and behavioral aspects of humans are of similar or greater significance. Therefore, Piketty’s argument does not stimulate an open and scientifically founded debate in all aspects.
Inequality, Poverty, Behavioral Economics, Capital Taxation, Eurozone Crisis
To cite this article
Bodo Herzog, A Review on ‘Capital in the 21th Century’, Psychology and Behavioral Sciences. Vol. 3, No. 6, 2014, pp. 207-211. doi: 10.11648/j.pbs.20140306.15
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