The deep roots of global inequality

Thomas Piketty, the French economist who shot to fame for writing a colossal work of economics that many people bought but few actually read, recently received some advice. ‘What you write is interesting,’ a friend told him, ‘but couldn’t you make it a little shorter?’ Piketty has answered the call for brevity with a book which by his standards is the equivalent of a Post-it note. It’s certainly ‘brief”– but is it a ‘history of equality’?

Alas, no. What we have instead is an eye-wateringly left-wing manifesto for dismantling economic inequality, both domestically and internationally. ‘Inequality is first of all a social, historical and political construction,’ Piketty writes, and the best way to tackle it is by creating ‘a new form of democratic socialism, decentralised and self-managing, ecological and multicultural, making it possible to structure a different world that is far more emancipatory and egalitarian.’

To start with, we need higher taxes. Much higher. Piketty notes: ‘Confiscatory tax rates have been an immense historical success.’ Any worries that this might crush business formation or choke economic growth are misplaced, as ‘it is the battle for equality and education that has made economic development and human progress possible, and not the veneration of property, stability and inequality’.

Inheritance also needs reform. It should be taxed and shared out, so everyone gets a piece. We need inheritance for all, along with a universal basic income and guaranteed employment, with the aim being ‘the gradual decommercialisation of the economy’. If that fixes inequality within countries, the inequality between countries can be reduced by liquidating the institutions of globalisation, such as the IMF, OECD and World Bank. Instead, we need a new set of transnational organisations with powers to levy taxes on the world’s largest corporations.