The Successor to Keynes
By Jeff Thomas, International Man
In recent months, Europe has been captivated by Thomas Piketty’s book, Capital in the Twenty-First Century. Released in March, this work quickly became a bestseller across the continent and has since made waves in the United States, attaining the top spot on Amazon’s bestseller list. Many reviewers are hailing it as a transformative text that could reshape the field of economics.
Here are some notable excerpts from reviews:
Piketty proposes a solution that surpasses the political constraints of individual nations: a global wealth tax. He argues that only such a tax can effectively address the unchecked growth of global wealth inequality, a trend that is unsustainable in the long term.
—Thomas B. Edsall
The book meticulously presents evidence that capitalism in the 21st century is on an irreversible path toward inequality unless corrective actions are taken. Piketty advocates for a “confiscatory” global tax on inherited wealth, positioning his ideas as more radical than those of traditional economists. His proposals include an 80% tax on annual incomes above $500,000 in the U.S., assuring readers that this wouldn’t lead to an exodus of top executives or hamper economic growth, but rather suppress high incomes. Unlike Marx’s Capital, Piketty’s work offers feasible solutions within the existing capitalist framework: a 15% tax on capital, an 80% tax on high incomes, mandated transparency for all banking transactions, and the strategic use of inflation to redistribute wealth.
—Rosaline Christine McGreevy
This book promises to redefine discussions about wealth and inequality, establishing itself as a significant reference for future economic thought. Its ambition, originality, and rigor provide a fresh lens on economic history while offering sobering insights for today’s challenges.
—Amazon
Words like “Brilliant!”, “Ground-breaking!”, and “Visionary!” will likely appear frequently in Mr. Piketty’s reviews. His extensive research stretches back to the 18th century, which lends weight to his arguments.
Indeed, the world is grappling with unprecedented economic challenges, making his publication incredibly timely.
Reviving Old Ideas
Let’s delve into Piketty’s main conclusions to understand why so many view his proposals as potential solutions to current global issues.
His recommendations include:
- Uniform global taxation
- Confiscatory tax on inherited wealth
- 15% tax on capital
- 80% tax on annual incomes exceeding $500,000
- Mandatory transparency for all banking activities
- Intentional inflation to facilitate wealth redistribution
You may wonder why this remarkable approach hasn’t been proposed before. The reality is that it mirrors the agendas long championed by the IMF, the EU, the OECD, and numerous governments of what was once known as the “free world.” Piketty’s vision aligns so closely with these established ideas that one might think he is their mouthpiece.
When a government proposes a notably socialist economic plan, skepticism often arises. However, when an “independent” economist presents a bold solution, it becomes much more palatable to the public.
Readers of International Man may have a different perspective. They may argue that the claim “satisfactory answers have been elusive due to inadequate data and guiding theories” is misleading. Libertarians and contrarians have been proposing viable solutions for years, but sadly, many people overlook perspectives that clash with prevalent governmental narratives.
As Doug Casey aptly puts it:
Even when people recognize the philosophy of personal freedom and responsibility, a majority struggle to emotionally integrate it. Others outright refuse to comprehend it intellectually. Unfortunately, libertarianism tends to resonate with a small minority.
The Successor to Keynes
It is intriguing to draw a comparison between Piketty and John Maynard Keynes. Keynes published his influential work, The General Theory of Employment, Interest, and Money, in 1936, offering solutions during the challenging times of the Great Depression.
Keynes’ theories garnered immediate approval from governments, advocating for state-controlled, socialist economic measures. Since then, Keynesian economics has served as the framework for most governments, frequently cited to justify their confiscatory policies.
With the current economic instability, Piketty’s “Revised Keynesianism” emerges as a potentially new economic paradigm for the 21st century, greatly enhancing governmental power.
Will global governments embrace this fresh perspective, crediting Piketty for lighting the path out of the economic turmoil blamed on capitalism?
Without a doubt. Just as Keynes’ ideas suited the objectives of 20th-century governments, Piketty’s will similarly align with the ambitions of 21st-century leaders. Like the Great Depression, a vast majority of people will not only accept but likely celebrate this new paradigm.
Those of us inclined towards libertarianism might view Piketty as a misguided academic lacking a true grasp of economics, but that would be shortsighted.
While many individuals are indeed gravitating towards libertarian ideals, seeking ways to safeguard their freedom and assets on an international scale, the vast majority remain hopeful that political and economic leaders will recognize the need for a more free-market society and reverse the increasing drift towards socialism and fascism.
These hopeful individuals should consider that a new blueprint for the future has been presented. This blueprint suggests that the failure of Keynesianism is not due to its socialist nature but rather because it was insufficiently radical. A more extreme form of Keynesianism has now emerged as the alternative.
If you reside in the EU, the US, or any country facing similar economic trajectories, you may need to ponder whether remaining in a jurisdiction destined to grow increasingly totalitarian during and after this economic upheaval is in your best interest.
Sincerely,
Jeff Thomas
for Economic Prism
[Editor’s Note: One issue is that people often hold onto hope until the last possible moment, believing that a major economic crisis or political upheaval “can’t happen here.” By the time they recognize what’s unfolding, it’s frequently too late. The timely documentary Meltdown America illustrates how financial collapse, war, and hyperinflation can insidiously approach, inevitably showing that it can and will occur here. Hear from crisis survivors from Zimbabwe, Serbia, and Argentina, along with renowned experts in this illuminating video—click to watch it here. The article The Successor to Keynes was originally published at caseyresearch.com.
