Tai Lieu Chat Luong CAPITAL IN THE TWENTY-FIRST CENTURY Thomas Piketty T r a n s l a t e d by A r t h u r V)e Belknap Goldbammer Press of H a r v a r d University C A M B R I D G E * M ASS A C H U S E T T S LONDON, ENGLAND IOI4 Press C o p y r i g h t ^ 2014 by rhc President and Fellows o f H a r v a r d C o l l e g e A l l rights reserved P r i n t e d i n Great B r i t a i n by T J International L t d , Padstow First published as Le capital copyright au X X I siecle, i o n E d i t i o n s d u Seuil Design by D e a n B o r n s t e i n Library of Congress Cataloging-in-Publication Data Piketty, Thomas, 1971[Capital au X X I c siecle English] C a p i t a l i n the twenty-first century / Thomas P i k e t t y ; translated by A r t h u r G o l d h a m m e r pages c m T r a n s l a t i o n or the author's L e capital au X X I e siecle Includes bibliographical references and index ISBN - - ^ - 0 - (alk paper) C a p i t a l Income d i s t r i b u t i o n W e a l t h I G o l d h a m m e r , A r t h u r , translator HB501.P43613 1014 331.041—dci3 1013036014 L a b o r economics II T i t l e Contents Acknowledgments • vii Introduction • i Part One: Income a n d Capital i Income and Output • 39 Growth: Illusions and Realities • 72 P a r t T w o : The D y n a m i c s o f the C a p i t a l / I n c o m e Ratio The Metamorphoses of Capital • 113 From O l d Europe to the New World • 140 The Capital/Income Ratio over the Long Run • 164 The Capital-Labor Split in the Twenty-First Century • 199 P a r t JJjree: T h e S t r u c t u r e of I n e q u a l i t y Inequality and Concentration: Preliminary Bearings ã 23ơ Two Worlds ã 171 Inequality of Labor Income • 304 10 Inequality of-Capital Ownership • 336 11 Merit and Inheritance in the Long Run • 3-¬ 12 Global Inequality of Wealth in the Twenty-First Century • 430 Part Pour: Regulating Capital i n the Twenty-First Century 13 A Social State for the Twenty-First Century • 4^1 14 Rethinking the Progressive Income Tax • ; 15 A Global Tax on Capital • $1$ 16 The Question of the Public Debt • 540 Conclusion • $^1 Notes • 5-79 Contents in Detail • $ List of Tables and Illustrations • 66s Index • 6"* Acknowledgments This book is based on fifteen years of research (1998-2,013) devoted essentiallv to understanding the historical dynamics of wealth and income Much of this research was done in collaboration with other scholars My earlier work on high-income earners in France, Les hauts revenus en F r a n c e a u z o e s i e c l e (2001), had the extremely good fortune to win the enthu- siastic support of Anthony Atkinson and Emmanuel Saez Without them, my modest Francocentric project would surely never have achieved the international scope it has today Tony, who was a model for me during my graduate school days, was the first reader of my historical work on inequality in France and immediately took up the British case as well as a number of other countries Together, we edited two thick volumes that came out in 0 and 1010, covering twenty countries in all and constituting the most extensive database available in regard to the historical evolution of income inequality Emmanuel and I dealt with the US case We discovered the vertiginous growth of income of the top percent since the 1970s and 1980s, and our work enjoyed a certain influence in US political debate We also worked together on a number of theoretical papers dealing with the optimal taxation of capital and income This book owes a great deal to these collaborative efforts The book was also deeply influenced by my historical work with Gilles Postel-Vinay and Jean-Laurent Rosenthal on Parisian estate records from the French Revolution to the present This work helped me to understand in a more intimate and vivid way the significance of wealth and capital and the problems associated with measuring them Above all, Gilles and Jean-Laurent taught me to appreciate the many similarities, as well as differences, between the structure of property around 1900-1910 and the structure of property now A l l of this work is deeply indebted to the doctoral students and young scholars with whom I have been privileged to work over the past fifteen years Beyond their direct contribution to the research on which this book draws, their enthusiasm and energy fueled the climate of intellectual excitement in which the work matured I am thinking in particular of Facundo Alvaredo, Laurent Bach, Antoine Bozio, Clement Carbonnier, Fabien Dell, Gabrielle vii ACKNOWLEDGMENTS Fack, Nicolas Fremeaux, Lucie Gadenne, Julien Grenet, Elise Huilery, Camille Landais, Ioana Marinescu, Elodie Morival, Nancy Qian, Dorothee Rouzet, Stefanie Stantcheva, Juliana Londono Velez, Guillaume SaintJacques, Christoph Schinke, Aurelie Sotura, Mathieu Valdenaire, and Gabriel Zucman More specifically, without the efficiency, rigor, and talents of Facundo Alvaredo, the World Top Incomes Database, to which I frequently refer in these pages, would not exist Without the enthusiasm and insistence of Camille Landais, our collaborative project on "the fiscal revolution" would never have been written Without the careful attention to detail and impressive capacity for work of Gabriel Zucman, I would never have completed the work on the historical evolution of the capital/income ratio in wealthy countries, which plavs a kev role in this book I also want to thank the institutions that made this project possible, starting with the Ecole des Hautes Etudes en Sciences Sociales, where I have served on the faculty since 0 , as well as the Ecole Normale Superieure and all the other institutions that contributed to the creation of the Paris School of Economics, where I have been a professor since it was founded, and of which I served as founding director from 1005 to 2007 By agreeing to join forces and become minority partners in a project that transcended the sum of their private interests, these institutions helped to create a modest public good, which I hope will continue to contribute to the development of a multipolar political economy in the twenty-first century Finally, thanks to Juliette, Deborah, and Helene, my three precious daughters, for all the love and strength they give me A n d thanks to Julia, who shares my life and is also my best reader Her influence and support at every stage in the writing of this book have been essential Without them, I would not have had the energy to see this project through to completion viii Introduction "Social distinctions can be based only on common utility" —Declaration of the Rights of Man and the Citizen, article -\ 1789 t The distribution of wealth is one of today s most widely discussed and controversial issues But what we really know about its evolution over the long term? D o 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? O r 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 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? These are the questions I attempt to answer in this book Let me say at once that the answers contained herein are imperfect and incomplete But they are based on much more extensive historical and comparative data than were available to previous researchers, data covering three centuries and more than twenty countries, as well as on a new theoretical framework that affords a deeper understanding of the underlying mechanisms Modern economic growth and the diffusion of knowledge have made it possible to avoid the Marxist apocalypse but have not modified the deep structures of capital and inequality—or in any case not as much as one might have imagined in the optimistic decades following World War II When the rate of return on capital exceeds the rate of growth of output and income, as it did in the nineteenth century and seems quite likely to again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the meritocratic values on which democratic societies are based There are nevertheless ways democracy can regain control over capitalism and ensure that the general interest takes precedence over private interests, while preserving economic openness and avoiding protectionist and nationalist reactions The policy recommendations I propose later in the book tend in this C A P I T A L IN T H E T W E N T Y - F I R S T CENTURY direction Thcv arc based on lessons derived from historical experience, of which what follows is essentially a narrative A D e b a t e without Data? Intellectual and political debate about the distribution of wealth has long been based on an abundance of prejudice and a paucity of- fact To be sure, it would be a mistake to underestimate the importance of the intuitive knowledge that everyone acquires about contemporary wealth and income levels, even in the absence of any theoretical framework or statistical analysis Film and literature, nineteenth-century novels especially, are full of detailed information about the relative wealth and living standards of different social groups, and especially about the deep structure of inequality, the wav it is justified, and its impact on individual lives Indeed, the novels of Jane Austen and Honore de Balzac paint striking portraits of the distribution of wealth in Britain and France between 1790 and 1830 Both novelists were intimately acquainted with the hierarchy of wealth in their respective societies They grasped the hidden contours of wealth and its inevitable implications for the lives of men and women, including their marital strategies and personal hopes and disappointments These and other novelists depicted the effects of inequality with a verisimilitude and evocative power that no statistical or theoretical analysis can match Indeed, the distribution of wealth is too important an issue to be left to economists, sociologists, historians, and philosophers It is of interest to everyone, and that is a good thing The concrete, physical reality of inequality is visible to the naked eye and naturally inspires sharp but contradictory political judgments Peasant and noble, worker and factory owner, waiter and banker: each has his or her own unique vantage point and sees important aspects of how other people live and what relations of power and domination exist between social groups, and these observations shape each person's judgment of what is and is not just Hence there will always be a fundamentally subjective and psychological dimension to inequality, which inevitably gives rise to political conflict that no purportedly scientific analysis can alleviate Democracy will never be supplanted by a republic of experts—and that is a very good thing Nevertheless, the distribution question also deserves to be studied in a systematic and methodical fashion Without precisely defined sources, meth2 INTRODUCTION ods, and concepts, it is possible to see everything and its opposite Some people believe that inequality is always increasing and that the world is by definition always becoming more unjust Others believe that inequality is naturally decreasing, or that harmony comes about automatically, and that in any case nothing should be done that might risk disturbing this happy equilibrium Given this dialogue of the deaf, in which each camp justifies its own intellectual laziness by pointing to the laziness of the other, there is a role for research that is at least systematic and methodical if not fully scientific Expert analysis will never put an end to the violent political conflict that inequality inevitably instigates Social scientific research is and always will be tentative and imperfect It does not claim to transform economics, sociology; and history into exact sciences But by patiently searching for facts and patterns and calmly analyzing the economic, social, and political mechanisms that might explain them, it can inform democratic debate and focus attention on the right questions It can help to redefine the terms of debate, unmask certain preconceived or fraudulent notions, and subject all positions to constant critical scrutiny In my view, this is the role that intellectuals, including social scientists, should play, as citizens like any other but with the good fortune to have more time than others to devote themselves to study (and even to be paid for it—a signal privilege) There is no escaping the fact, however, that social science research on the distribution of wealth was for a long time based on a relatively limited set of firmly established facts together with a wide variety of purely theoretical speculations Before turning in greater detail to the sources I tried to assemble in preparation for writing this book, I want to give a quick historical overview of previous thinking about these issues MalthuSy Young, a n d the French Revolution When classical political economy was born in England and France in the late eighteenth and early nineteenth century, the issue of distribution was already one of the key questions Everyone realized that radical transformations were under way, precipitated by sustained demographic growth—a previously unknown phenomenon—coupled with a rural exodus and the advent of the Industrial Revolution How would these upheavals affect the distribution of wealth, the social structure, and the political equilibrium of European society? Index Abu D h a b i Investment A u t h o r i t y , - - Asset s t r u c t u r e , twenty-first vs eighteenth A c c o u n t i n g : n a t i o n a l , $5-59 92 230, ; c e n t u r y , 118-120, 111-123 A t k i n s o n , A n t h o n y , 17, , , m n i , , , c o r p o r a t e , 203 Accumulation of wealth Wealth o n 3 , i o n i , 614032, n n o , 638035 A u s t e n , Jane, fiction of, 2, 53-54,105-106,141, accumulation A c c u m u l a t i o n p r i n c i p l e , i n f i n i t e , 7-11 228 411-412, 415-516,619036, o n , n n ; P a r k , 115,120-121,10-•; P e r s u a s i o n , 361 Africa: production i n , - ; income and, - , 66, - , n n $ , } : g r o w t h i n , 75 - ^ , A u s t e r i t y , p u b l i c debt a n d , 5 - , 8 ; c a p i t a l / i n c o m e r a t i o i n 195 - ; A u s t r a l i a , 1-4, 1-7-178 taxes a n d , 491; c a p i t a l o u t f l o w f r o m , 539 See Autrer, M a t t h i e u , 64104 also N o r t h Africa; South Africa; Sense a n d S e n s i b i l i t y , 113, 362 413-414; M a n s j i e l d Acemoglu, D a r o n , i n i o , 6j9nn4>,48 Sub-Saharan Badiou, Alain, 655m Africa Age-wealth p r o f i l e - 9 B a g n a l l , R o g e r S., i n i o A g r i c u l t u r a l l a n d : i n B r i t a i n a n d F r a n c e , 117,119; Bakija, Jon, o - n in G e r m a n y , 141; i n A m e r i c a , 151-151; Baiassa-Samuclson elasticity or s u b s t i t u t i o n a n d , - 1 B a l z a c , H o n o r c de, fiction of, , - - 411 m o d e l , 586028 A l b e r t , M i c h e l , 591ns - , c i o , 619036; Pere Allais, Maurice, m - , i n 113-115, - , 345 411, 4 , 59on3, Goriot A l l e n , Robert, - , s8on>, § n 0 ; Cesar A l t e r n a t i v e i n v e s t m e n t s , 4 - , 456 1 - , 0 , , 615P.34 624015 % 104, 106, B i r o t t e a u , 115, 207, 214, A l t h u s s e r , L o u i s , 6»m Bancrjcee, A b h i j i t , 17 611 n32, ^ A l v a r e d o , F a c u n d o , 1- B a n k i n g i n f o r m a t i o n : a u t o m a t i c t r a n s m i s s i o n or 516, 52c, - , ; C y p r u s crisis a n d , A m e r i c a : i n c o m e a n d , 63, 68; b i r t h rate a n d , ^9; g r o w t h i n , 93; c a p i t a l i n , 140,150-158; structure SS4 5>5 _ o f i n e q u a l i t y i n , 152 Set a l s o N o r t h A m e r i c a B a n k or E n g l a n d , 551-551,55- "American exceptional ism," B a n k or J a p a n , 551.55- 2 A m e r i c a n R e v o l u t i o n , 30, 493 B a n k s , c e n t r a l See C e n t r a l b a n k s A n c i e n R e g i m e 104, 106; p u b l i c debt a n d , B a n q u e de F r a o c c , 649015 12- 129,183; i n e q u a l i t y a n d , 251, B a r r o , R o b e r t , 135 263-264, - - ; t a x a t i o n a n d , 493, 501 Barry R e d m o n d , 0 A n d e r s o n , G o s t a E s p i n g , >8^ns B a u d c l o t , C h r i s t i a n , 6051110 A n d r i c u , Claire, 591ms B c b c h u k , L u c i a n , 61103s " A n n u i t i z e d w e a l t h , " 384 391-392 Becker, G a r y 585- 6160-, 611055 A r i s t o c a t s , The ( c a r t o o n ) , - 6 B e c k c r t , Jeos, 1 , 61606, - 638053 A r n a u l t , B e r n a r d , 6261133 Bcguio, K., 5980- Arrow, Kenneth, ^ B c l l e £ p o q u c 106 127 151; c a p i t a l ' i n c o m e ratio and, A s i a : i n c o m e a n d , 63, 6 , 68, 5851124,5861134; 99; c a p i t a l / i n c o m e r a t i o i n 195; c a p i t a l o w n e r s h i p i n , 339 - - ^ ; financial age a n d f o r t u n e i n , 593-596 crisis i n , 535 B e r n s t e i n , E d u a r d 219 Assets: p u b l i c , 135-139; prices of, - - , i - - w i - 453, 6261131; 148,151, 154 196; i n c o m e i n e q u a l i t y i n ^ - , 6 - - 2-2, 282 511; i n e q u a l i t y or investment i n , - o - ~ i ; g r o w t h i n , - ^ , 82, financial, Bettcncourt Liliane, 4 - 4 4 , ^ ; real a n d n o m i n a l , 209-212.5981111; size effects of B i l l a n d M e l i n d a G a t e s F o u n d a t i o n 626032 453- 454; t a x a t i o n of, 518 Sec a l s o N e t asset B i l l i o n a i r e s , 3 - 4 4 - 4 S - S 4t >> , 6i3n~ 624m3 positions; W e a l t h 671 INDEX B i r t h rates - - ; S8-114 s 8 n - r e p r o d u c t i o n of irself, 4 See a l s o Foreign Bjorklund Anders ; m i capital/assets; N a t i o n a l wealth/capital; Private B l a n k , Rebecca d o S n i i , n s ; w e a l t h / c a p i t a l ; P u b l i c w e a l t h / c a p i t a l ; Rate of return o n capital B o i s g u i l l c b e r t Pierre 1c Pcsant sieur de 56 S9oni B o o k / > m a r k e t value 189 -191 ( ' < i p i t i I ( M a r x ) 9,11s, 219 Borgcrhon M u l d e r M o n i q u c ^ c n i i C a p i t a l , i n c o m e f r o m , 18, 21, 53; reduction i n , - - - 3 - 3 ; i n twenty-first century Bo11 rd eu, c r o m e 611 n n 4.9 B o u r d i c u Pierre b - - - - ; t o p d e c i l e a n d , 279-281, B o u r g u i g n o n Francois, sS'smo 290, B o u t my, F m i l e , - ol 195 301, - 1 ; underestimation 2X1-184, 194 o m ; taxation on, B o u v i c r Jean, u s 5811134 - Sec a l s o I n e q u a l i t y o f capital B o w l c v A r t h u r 119 599111119 10 ow nership C a p i t a l , m e t a m o r p h o s e s of: nature o f wealth and, Bo/10 A n t o i n e , 6331146 Br ad v H n s 113-116; i n B r i t a i n a n d France, 113-139; asset B r i t a i n : data f r o m 28 56-5"*; n a t i o n a l i n c o m e s t r u c t u r e (private) a n d , 116-110 111-113; and - : g r o w t h i n - 9 , 1-4-1-5* foreign c a p i t a l a n d 110-123; p u b l i c and s i e - s i i ; m o n e t a r y system or, 10s private w e a l t h a n d , 113-119; p u b l i c debt and, 589-590111118.19; per capita i n c o m e i n , 106 119-154; R i c a r d i a n equivalence a n d , 134-135; in p u b l i c assets a n d , 155-139; i n G e r m a n y , 590-591118.9; i n f l a t i o n i n i o - , 133 142, - ; t w e n t i e t h c e n t u r y shocks and, 149: c a p i t a l i n 116-12- - : foreign c a p i t a l assets a n d , 11 119 148, 191 — 192., - ; i n the U n i t e d States, 150-156, 59011-; p u b l i c debt of, 124-116, 12- 158-163; i n C a n a d a , 157-158 119-131, 133 i n i c 591m2; p u b l i c assets i n , 136 138: C a p i t a l a c c u m u l a t i o n , g o l d e n rule of, - - C a n a d a a n d , 15 158; savings i n , ———1—8; C a p i t a l c o n t r o l s 515-516, 534-536 c a p i t a l - l a b o r split i n 0 - , , 205, C a p i t a l gains: t r e a t m e n t of 183, 195, 6091115; - 1 , - 1 ; t a x a t i o n a n d , 338 - 9 , 501, 505, S - - , 6 n i U n i t e d States a n d , 293, 295 296 C a p i t a l / i n c o m e r a t i o , 19, - 164-199: 638nn33.34.35; w e a l t h d i s t r i b u t i o n i n , e v o l u t i o n of, ; d e f i n e d , - ; fundamental - 4 ^46; i n h e r i t a n c e s i n , - - : taxes laws of c a p i t a l i s m a n d , 52-55 6 - - ; in as share of n a t i o n a l i n c o m e i n - - - , B r i t a i n a n d F r a n c e , 11 118, 126; collapse and i n ; social state i n , - - - ~ , recovers' of - 275; i n the U n i t e d States 629ml, 31 n 15 150-155; capital's c o m e b a c k a n d , - - - ° : B r o w n , Frederick, 119-110 b e v o n d bubbles a n d 173-183; p r i v a t i z a t i o n B u b b l e s , 1-2, 195, m - , 59^n3o; b e v o n d , i - - and Buffet W a r r e n , 6141114 18 191; n a t i o n a l capital a n d net foreign assets B u s h G e o r g e \X' 309 and, 185-187; r e b o u n d of asset prices and, 191-194; l a n d values a n d , 196-198; c a p i t a l - l a b o r split a n d 9 - , 252-253; C a g e , J u l i a 6531148 f a l l i n g rate o f profit a n d , 219; How of C a i l l a u x J o s e p h , 6571114 C a m p i o n , H 5911119 i n h e r i t a n c e s a n d , 383 - 384: w o r l d - ' C a p i t a l i s m 1; m i s e r y of, - 4 - 4 - ; M a r x on, C a n a d a , 66; i n U S - C a n a d a b l o c - ; c a p i t a l i n 7-11 - 565; author's view of, 51; first 140, 15 158; foreign capital/assets i n 157-158; f u n d a m e n t a l law of, 52-55 » 9 : second g r o w t h rate of, 174; savings i n - - S f u n d a m e n t a l law of ss 6 - - ; financial 58 "Capabilities" approach, Sis: key aspects of 116-118; w i t h o u t capitalists, C a p i t a l : h u m a n and n o n h u m a n - 1 41, 46- 155 -159; R h e n i s h - 191, si 1; - ; types of, , ; d e p r e c i a t i o n a n d p a t r i m o n i a l 154-155 173, 13- 4-1; illusion of - 4 : d e f i n e d 45- 47, 123; private vs p u b l i c end of , 350, 381 39~: crisis of 0 a n d - " ; and w e a l t h 47 50; e c o n o m i c - ; c o n t r o l of 518, s i ; , s u - S3- 561 f u n c t i o n s of, 48; d o m e s t i c vs foreign 570; c e n t r a l c o n t r a d i c t i o n of S " i s"> 118-119; i m m a t e r i a l ; residential vs C a p i t a l l a b o r s p l i t 39~4S 199 - i H : p r o d u c t i v e 51-52; rents a n d - 4 : capital/ i n c o m e ratio a n d 199- 203 232 -233; return on 672 INDEX capital a n d , 199-117; Hows a n d , - ; real C l i n t o n B i l l , 309 and n o m i n a l assets a n d , - 2 ; m a r g i n a l C o b b , C h a r l e s , 599018 p r o d u c t i v i t y o f c a p i t a l a n d 212-217; elasticity C o b b - D o u g l a s p r o d u c t i o n f u n c t i o n 11 110 of s u b s t i t u t i o n a n d - 2 ; s t a b i l i t y of, 599m- 6001115 - 2 , 231-232; h u m a n c a p i t a l a n d , Cole Adam, o n i 1 - ; m e d i u m - t e r m changes i n 2 - - C o l o n i a l empires, 120-121 288; f a l l i n g rate of profit a n d , 2 - - ; " t w o C o l o n i a l era, 4 - C a m b r i d g e s " and 230-232; capital's comeback C o l q h o u n , P a t r i c k 250 a n d , 232-233, - ; t e c h n o l o g y a n d 234 C o l son, C l e m e n t , 5-, i n i , i - n i o C a p i t a l stock, $0-51 113 ^ ; first f u n d a m e n t a l C o l u m b i a 31" 319 law o f c a p i t a l i s m a n d 52-55, 199; a c c u m u l a - " C o m m o n utility." 48c, G j o n i o tion of, 6 - - : t o o m u c h , 212, 215-217,113, C o m m u n i s ? M a n i f e s t o , I h e M a r x , S-9.115 2 - ; i n h e r i t e d w e a l t h a n d , - 4 410 C o m m u n i s t movements 10 C o m p e t i t i o n : pure and perfect, 30 211, 114, C a p i t a l tax See G l o b a l tax o n c a p i t a l ; T a x a t i o n , on capital 312-313 332 - 1 : fiscal 10S 211 C a r b o n tax ^ 355-356 3-3 3-5- 421 562; inheritance and unrestricted, - 4 C a r p c n t i e r , V i n c e n t 632n34 C a r d , D a v i d 313 6081110 C o n c e n t r a t i o n effects vs volume effects, 410 C a s t e l R o b e r t , 608119 C o n d o r c e t , m a r q u i s de 565 654:156 C a t e g o r i c a l or s c h c d u l a r tax, 501 C o n f i s c a t o r y tax rates, 4-3; executive income a n d , 5 - ; fiscal progressives a n d , 511-514 C e n t i l e , u p p e r / t o p , 251 - , - - , 301; i n t w e n t i e t h c e n t u r y - - , - ; C o n s e r v a t i v e r e v o l u t i o n 98, 158-139 333 511 549 in twenty-first c e n t u r y , 1—'-27*8: w o r l d of, C o n s u m p t i o n taxes , s i n " - - : u n d e r e s t i m a t i o n of - : wages C o n t i n e n t a l blocs 59-61, 68 a n d , - , , - 0 314-315 6181119; C o n t n b u t i v e justification, > 14-515 c o h a b i t a t i o n i n 0 - ; e v o l u t i o n or by C o n v e r g e n c e , n - 1 i ~ 5~r forces favoring c o u n t r y a n d r e g i o n , - 2 - - 529 - ~ i ; global, ~ i C o r p o r a t i o n s , 156 103, 331; taxation on profits of, o - i o n n i , i , i , i i - i i , 610nn22.25.25 : wealth d i s t r i b u t i o n a n d , - , - - 650-65in33 65in;6 C r e a t i v e a c c o u n t i n g , 214 365-366 - 509 n > : w o r k vs inheritance and - 1 ; return on capital C r e d i t Suisse 43- 0231110 and C r o s s - i n v e s t m e n t s 194 431; o l i g a r c h i c divergence a n d 463: taxation and 496 C r o u z e t F r a n c o i s 591 n n C u m u l a t i v e g r o w t h , law of - - C e n t i l c s , measurement a n d 252-255, - - c , C u m u l a t i v e returns, law of, 286 C e n t r a l b a n k s , - - - 6481110 m l : C v p r u s C v p r u s b a n k i n g crisis 519 553-55 crisis a n d , 519, 55>-5s6: financial s t a b i l i t y a n d D a m a g e s < T V >cncs , 419 W - S 5 555-556 D a t a : i m p o r t a n c e of 1-5; n a t i o n a l income as ( e s a r B i r o t t e a u (^Balzac), 115, - 114 1 - C h a b e r t A 6001119 n - i - 5841118; o n i n c o m e , i - « - : o n C h a l l e n g e s w e a l t h r a n k i n g s , 4 , 6141118 w e a l t h i - - i c ; geographical a n d h i s t o r i c a l C h a r l e s X , 6131111 b o u n d a r i e s of - - ; d e v e l o p i n g countries C h a v a g n c u x C h r i s t i a n 6181156 and,58-59 D a u m o n d A d e l i n e 5821133 C h i n a : i n c o m e a n d - 6 g r o w t h i n 81 9 319 ; i n c o m e i n e q u a l i t y i n - - , Das ics James B 63S11S 610H27 6461142; assets of - -6281150; Debreu Claude " ^ taxes i n , 491 ; r e g u l a t i o n i n , 555-536 D e b t - W P u b l i c debt C i v i l C o d e , - 6 , 6141123 D e c i l e , upper, top, 251-153, - 0 - : «"* t w e n t i e t h century 2-1-2-3 - s - : ~ f C l a r k G r e g o r y , 5911115 Class designations, 150-251 - S ; w o r l d of 1-8-181; underestima- C l i m a t e change, t i o n of - - ; wages a n d 56 509 673 INDEX D i s t r i b u t i o n rabies, 267, - Decile ( c o n t i n u e d ) Divergence, 22-27, 0 - - 9 U ~ u s ; wealth distribution and, u : - U - 4 t S , ; E u r o p e and N o r t h A m e r i c a a n d , - ; supcrmanagcrs and, 339-546 34N-349 355- 535; m e c h a n i s m of w e a l t h , 350-353, 431; s - 6 , - ; r e t u r n o n c a p i t a l a n d , 431 global, - - ; oligarchic, D e c i l e s , measurement a n d , 251-255 n s 6021120; i n t e r d e c i l e ratios a n d ^ - - 6271149 D i v i s i a , F r a n c o i s , 5911119 603111123.24 D e c l a r a t i o n o f Independence ( U S ) ( r ^ ) , 479 D j a n g o U n c h a i n e d ( f i l m ) , 163 D e c l a r a t i o n or" the R i g h t s o f M a n a n d the C i t i z e n D o n i a r Evscy, 230-131 D o m e s t i c c a p i t a l , ; i n B r i t a i n a n d France, ^1-89) - - Defensive n a t i o n a l i s m 559 11 -7—119 i n G e r m a n y , 141,143; i n the U n i t e d D e f l a t i o n 28s States, 150-151, 155; i n C a n a d a , 157; slavery ; and, 158-163.593ni6 D e F o v i l l e A l f r e d , s~ 61-1110 D e G a u l l e , C h a r l e s , 289 Domestic output/production D c l a l a n d c , Nicolas, 655m D o u g l a s , P a u l , 5991118 D e l l F a b i c n , 1- i s n , 645113- D o w r i e s , 392, 418 D e m o c r a c y : challenge t o , 21, - - ; rentiers a n d , D u f l o , Esther, n 2 - 4 ; t r a n s p a r e n c y a n d 518-521; c o n t r o l Duncan G., 632^0 of capital and, - - , - D u n oyer, C h a r l e s , 85 44-45,59^n3 D u p i n , J e a n , 5911119 D e m o g r a p h i c g r o w t h , - - - s , 174; stages or, - - - ; negative - ; b e l l c u r v e of g l o b a l , D u r a b l e g o o d s a n d valuables, 179-180, " n 99, s n ; decreased, 6 - D u r k h e i m , E m i l e , 422, n n s s Demographic transition, 5-4, 29-30, - 81-82 D u v a l , G u i l l a u m c , 592n6 D e n m a r k , 495 E a r n e d a n d u n e a r n e d i n c o m e : inheritances and, D e p r e c i a t i o n , 43, i^S 377-379,390; taxation and, 507-508 D e r e g u l a t i o n m o v e m e n t , 138-139 D i Bartoiomeo G , 63~n26 E a s t e r n b l o c c o u n t r i e s , p r i v a t i z a t i o n i n , 186-187 "Difference p r i n c i p l e " (Rawls), E C B ( E u r o p e a n C e n t r a l B a n k ) , 530, S45.550-$Si> D i r t y Sexy M o n e y ( T V scries), 419 SS3 SS7-SS** n D i s p o s a b l e i n c o m e , 180-182 " E c o l o g i c a l s t i m u l u s , " 568 D i s t r i b u t i o n , e q u i l i b r i u m , 361-366 E c o n o m i c determinism, 20 D i s t r i b u t i o n of w e a l t h : factorial vs i n d i v i d u a l , , E c o n o m i c flows, 381-383 S83n3; n a t i o n a l a c c o u n t i n g a n d , 55-59; g l o b a l , E c o n o m i c g r o w t h , - , , - : stages of, - ; regional blocs a n d , - ; u p p e r - ; i n p o s t w a r p e r i o d , ; social order and, centile* a n d deciles a n d , 2 - , 3 - , 96 See a l s o Per c a p i t a o u t p u t g r o w t h - - 6 ; i n France 337-343,346, E c o n o m i c s , 3, 10, 32-33 $7}~S~7 - 6 ; i n B r i t a i n , - 4 , 346; i n E u r o p e E c o n o m i e s o f scale, p o r t f o l i o management and, 343-S45 H e : i n Sweden, 4 - 346-34" : r in the U n i t e d States, - ; r e t u r n o n 431, 440 450-451 E d u c a t i o n a l system: convergence a n d 22, 71; c a p i t a l a n d u n e q u a l , 361, 571-571 See a l s o t e c h n o l o g y a n d , - ; i n e q u a l i t y a n d , 3H G l o b a l inequality o f wealth; Inheritance, 314-315, - , - 1 6321136; d y n a m i c s of p u b l i c s p e n d i n g i n , 47^ 4^^ 6291114: social D i s t r i b u t i o n of w e a l t h debate: data a n d , 2-3, mobility and, - 11-13 " - - ; classical p o l i t i c a l e c o n o m y and 3-5; scarcity p r i n c i p l e a n d , 5-7; i n f i n i t e a c c u m u l a t i o n p r i n c i p l e a n d , 7-11; p o s t w a r l"-gyP S « l E l a s t i c i t y o f s u b s t i t u t i o n , - 2 , 6001131 E m e r g i n g e c o n o m i e s : i n e q u a l i t y of labor income o p t i m i s m a n d 11-15; i n e c o n o m i c analysis, and, 15-16; h i s t o r i c a l sources a n d , - ; results o f - 3 ; i n h e r i t a n c e s i n - ; social state i n - , 6331149 c u r r e n t study i n , - 2 ; forces o f convergence Engels, F r i e d r i c h , , ^ a n d divergence a n d , 2 - ; t h e o r e t i c a l a n d E n g l i s h R e v o l u t i o n , 30 c o n c e p t u a l f r a m e w o r k a n d , 30-33 E n t a i l s 362-363 4S> 674 INDEX Entrepreneurial income, F a m i l y fortunes: shocks a n d , , ; E n t r e p r e n e u r i a l l a b o r , 41 t a x a t i o n a n d , 374; desire to perpetuate, Entrepreneurs i n w e a l t h r a n k i n g s , - 4 391-392, 0 E q u a l i z a t i o n a n d g r o w t h - See a l s o F a r m l a n d , as capital: i n B r i t a i n a n d France, n - \ Convergence 119, 2 - , o n i ; i n G e r m a n y , 141; in Equations: r > g , 15-27 353-35** , - 6 , A m e r i c a , 150-152,155; pure value of, 197 375-376, 395-396, 4 - 5^1-572, Favre, P., 633n42 i n ; fi = s/g, 33 50-55- 6 - - , 187 228 Federal Reserve, , - 5 5 - 130-232; a = r x p 33 5^-55 - , 199, 2.13 F c r t i l i t y See B i r t h rates - ; ^ = / / (3, - ; r - g , - 6 , F i n a n c i a l assets, 209, - n ; prices of, 171-171 451; b = j i X ; « X p 383; r - g 563; VL-s a>s, 431, and 187-191 452-453 F i n a n c i a l crisis (1008! - - - , 563-564 E q u i l i b r i u m d i s t r i b u t i o n , 361-366 549-550.558 Equipartition, 362-363,365 F i n a n c i a l g l o b a l i z a t i o n , 193-194.355 430 Erreygcrs, G , - ^ F i n a n c i a l i n t e r m e d i a t i o n , 205 214 235, 430-451 Estate d e v o l u t i o n , rate of, 389, i n i o 453.54i F i n a n c i a l legal structures 451-451 Estate tax, 33* ~339.355 ~ : r e t u r n s as source of data, 18-19; a c c u m u l a t i o n of w e a l t h a n d , F i n a n c i a l markets, , 58, - 374-375; progressive, - 5 - F i n a n c i a l professions, 305 Fiscal flows, 581-381 European A e r o n a u t i c , D e f e n s e , a n d Space C o Fiscal pressure, 108 (EADS),445 F i s c a l transactions tax, s i n European C e n t r a l B a n k See E C B ( E u r o p e a n Fisher, I r v i n g , 506 Central Bank) European C o m m i s s i o n , 555 Fitoussi Jean-Paul, m s European C o n s t i t u t i o n a l T r e a t y , 0 Flat tax , 0 - European P a r l i a m e n t , 559 Flcurbaey M a r c , 631013 European w e a l t h tax - - F l o w s : capital-labor split a n d - : o f annual inheritances, 5-9-581 Europe/European U n i o n : global production and, Fogel, R o b e r t 159 59-61; as r e g i o n a l b l o c , - 6 , - , S n i ; d e m o g r a p h i c g r o w t h i n , - , 81-81; Forbes, Steve, 4 , i n i e c o n o m i c g r o w t h of, - - - , - 99 F o r b e s wealth rankings, 451-434 4*9~443 s 518, i n i 174, 595010; i n e q u a l i t i e s i n c a p i t a l o w n e r s h i p in - 5 ; i n c o m e i n e q u a l i t i e s i n , - - , Foreign A c c o u n t Tax C o m p l i a n c e Act • FAT C A , 155.311-313; w e a l t h d i s t r i b u t i o n i n , 5 - 5 , 511-514 550, n n i , i ; i n h e r i t a n c e s a n d , 4 - - ; F o r e i g n capital assets - ; convergence a n d net assets of - , i - n s o ; taxes i n , - - ; i n B r i t a i n a n d France 11 119.14S S - " , ; social state i n , 7 - ^ , o n - ; rise a n d fall or 110-115 - - ; i n m - ; s o c i a l m o d e l of 481; d i r e c t i v e o n G e r m a n y , - m s : i n the U n i t e d foreign savings of, 2 - ; p u b l i c debt a n d , States 151,155-156: N e w W o r l d a n d , is>-»5"" 556-562; budgetary p a r l i a m e n t for, 5 - in C a n a d a , 15 15S; n a t i o n a l capital a n d , 650028; m u t u a l i z i n g p u b l i c debt i n , s o n i 191-194: convergence a n d s - n See a l s o Belle E p o q u c F o u n d a t i o n s , as private wealth capital 181-185 451-452 626111132.53 E u r o z o n c , , 4 - 5 , 5 - ; deficits debate F o u r q u c t Francois s n i i n , 565-567 655114- France: g r o w t h i n 81-82 98 »~4: estate tax i n , Exchangc rates, - - s s - s n s 1S-19 55 39; data f r o m S - - - Executives: c o m p e n s a t i o n of 531-555 639114- n ; national income and - : 6401149; c o n f i s c a t o r y tax o n i n c o m e of p u r c h a s i n g power a n d 8 - : employment b\ S05—512 See a l s o M a n a g e r s sector i n 9i: monetary system of, ' m - Fack, G a b r i e l l c 6261134 5901129; per capita i n c o m e i n , 106 : , c n i Factorial d i s t r i b u t i o n s83n3 590-59in8.9; i n f l a t i o n i n i c - 153 149, 675 INDEX G l o b a l i n e q u a l i t y of w e a l t h - - ; s4n 540 c a p i t a l i n 116-12- - foreign r e t u r n o n c a p i t a l a n d - ; wealth , a p u a i i'-H-h a m i n - -1 iw 4S 191-101 rankings and 451-436: " G l o b a l Wealth N Reports" and ; n - , : public debt of 114-126 11- - : divergence and, :i9 ! ; i - u > 591 n n 15.14 i n ; t a x a t i o n i n - 39 - : i i~5 ; s - : - - s :••"*• o n 16 and - 4 ^ : m o r a l hierarchy a n d 4 - 4 - ; heirs and entrepreneurs ,"5 ns < « ; - ; n u : » i n i ; - i ; : p u b l i c assets i n i ; -159 i n f l a t i o n a n d - 5 : sovereign wealth funds 1*4: a n d 5 - : C h i n a a n d - ; rich and N.f mg> m J - - - I - : c a p i t a l - l a b o r split i n 1:1 : - 105 : - : 216 225-11"": poor countries and - - : :nco i.ili:v i n i ~ ; - S and 51S-511 ; 1*4-291; wealth transparency d i s t r i b u t i o n m ; r - ? ; 346 - 6 : ( t i o b a h / a t i o n first a n d second periods of, 18 i n h e r i t a n c e s : n - - * * - 5>>- 596 W G l o b a l tax o n c a p i t a l , s is - 539 5-1-5-5: as useful 1 - : 418 - - ; m o r t a l i t \ rate I t o p i a 515-51*: b a n k i n g i n f o r m a t i o n and i n ;Ss - ;S8 i n : \ o t i n g rights i n 4 516 - : t r a n s p a r e n c y a n d 516, 518-511; 02in5.v taxes as share of n a t i o n a l i n c o m e m p u r p o s e of 518, 510 - - : European - - - c29116: social state a n d - 495 w e a l t h tax a n d s i - - S o ; h i s t o r i c a l perspective ; : n 16: w e a l t h tax i n 555 - 4 n i o n 5 - 5 : r e g u l a t i o n a n d 554-536: sn;S p e t r o l e u m rents a n d , > - - 5 ; i m m i g r a t i o n France Telecom 159 a n d 538-559: E u r o z o n c a n d 560-561; vs F r e n c h R e v o l u t i o n : data a n d - 56; i n f l a t i o n c o r p o r a t e i n c o m e taxes, 6501151 and, 10 4: w e a l t h d i s t r i b u t i o n a n d , - , " G l o b a l W e a l t h Reports." 436-439 ;6i-5