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Sunday, October 25, 2020

Thomas Piketty — What to do with Covid debt?

According to Challenges, France’s 500 largest fortunes have thus risen from €210 to €730 billion between 2010 and 2020 (from 10% to 30% of GDP). Such a development is socially and politically unsustainable....
The whole history of public debt shows this: money alone cannot offer a peaceful solution to a problem of this magnitude, because it leads in one way or another to uncontrolled distributive consequences. It was by resorting to exceptional levies on the better-off that the large public debts of the post-war period were extinguished and that the social and productive pact of the following decades was rebuilt. Let’s bet that the same will be true in the future.
Le Monde — Le Blog de Thomas Piketty
What to do with Covid debt?
Thomas Piketty | Directeur d'études à l'Ecole des Hautes Etudes en Sciences Sociales, Professeur à l'Ecole d'économie de Paris/Paris School of Economics, and Co-directeur, World Inequality Lab/World Inequality Database

6 comments:

  1. This is like moron Bernie Sanders saying whether we can have clean water or not relies on the share price of Microsoft....

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  2. Piketty says in his last para that, “It was by resorting to exceptional levies on the better-off that the large public debts of the post-war period were extinguished and that the social and productive pact of the following decades was rebuilt. Let’s bet that the same will be true in the future.”

    Well that certainly wasn’t the case in the UK. That is, the UK’s public debt to GDP ratio declined from around 250% of GDP in 1945 to around 50% in the 1990s entirely thanks to a combination of real economic growth and inflation eating away at the real value of the debt.

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  3. https://twitter.com/BernieSanders/status/1192478435693780992?s=20

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  4. A 'one off' tax of 100 billion deserves a spanking from his economic advisor.

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  5. He doesn’t listen to her... never has...

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