The economics of inequality
(Book)

French economist Thomas Piketty became a minor celebrity in 2014 with the publication in English of Capital in the Twenty-First Century (CH, Aug'14, 51-6864), a controversial book that in academic and policy circles added significantly to conversations and debates over growing inequality worldwide. The Economics of Inequality is Piketty's latest contribution to hit the American market, though it was actually written about 20 years ago, periodically updated, and likely released to capitalize (pun intended) on the success of Capital. A slimmer introduction to research on and musings about inequality, Piketty's four chapters treat the following: the measurement and evolution of the concept itself; inequality in terms of capital and labor; inequality within labor income; and public policy options to reduce inequality--also known as redistribution schemes, such as higher progressive taxes on the wealthy and tax credits to supplement the earnings of the poor. Technically a 2015 volume, the book has a dated feel in terms of its contents and data; it also exhibits the intellectual trappings of a wet-behind-the-ears, budding scholar in the late 20th century as well as a decidedly subjective tone. At 20 percent of the length of Capital, its value may be of a similar magnitude. Summing Up: Recommended. With reservations. Upper-division undergraduates through professionals and practitioners. --Allen R. Sanderson, University of Chicago

Piketty's 2013 masterwork, Capital in the Twenty-First Century, made income inequality a household phrase-particularly for those who hope to move their own households to the White House. This earlier work, first published in 1997 and since revised and updated, is more approachable, and it arrives at the same dismal conclusion: the rich are getting richer and the poor, poorer. In the developed world, this phenomenon occurs most sharply in the U.S., where the top 10% collectively have 5.9 times the disposable income of the bottom 10%. In Sweden, by contrast, the figure is 2.7. Piketty isn't a sloppy or partisan thinker, and he methodically criticizes ineffective solutions from the left. In his view, the poor usually bear the brunt of these, whether in increased payroll deductions for social insurance, higher marginal income tax rates, or unemployment. Piketty, who believes income inequality leads to political instability, proposes a guaranteed minimum income or "basic income" as an efficient means of redistribution. He also explains how economists measure economic inequality and looks at the phenomenon's underlying causes (which do not include hedge fund managers or Chinese laborers.) If Piketty is right, inequality is increasing and cannot be cured by the free market; we must understand the problem to understand how to address it. This should be required reading for every concerned citizen. (Aug.) © Copyright PWxyz, LLC. All rights reserved.

French economist and best-selling author Piketty (economics, Paris Sch. of Economics; Capital in the Twenty-First Century) first wrote this short book on economic inequality in 1997. In it, he examines the ways such inequality can be measured: the disproportion between capital and labor, and of income from labor, and the tools available to lessen such imbalance. Much of his discussion centers on France, but he pulls in data and examples from other countries, particularly the United States. Piketty concedes that although the work has been updated, it is still essentially a representation of the data available in 1997. Few of the cited references are later than the mid 1990s. Nonetheless, the author's insightful examination of topics such as employer discrimination, unions, and minimum wage laws are pertinent today. Though the author's style is not overly technical, it is academic in tone, and some background in economics would be helpful for full understanding. VERDICT Most readers will be better served by Capital in the Twenty-First Century, leaving students and economists as the likeliest audience for this title.-Lawrence Maxted, Gannon Univ. Lib., Erie, PA © Copyright 2015. Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.

In a work that is aligned with but antecedent to his grand synthesis, Capital in the Twenty-First Century (2013), French economist Piketty examines the structural causes of inequality. Capital and income are intertwined, of course, and unevenly distributed. Just how unevenly has been a subject of much economic-historical work lately. In this book, published in 1997 and updated here and there since, Piketty observes that he does not "take fully into account the results of the past fifteen years of international research on the historical dynamics of inequality," but the eternal verities hold. As the author writes, in a moment worthy of Marx, "the question of inequality and redistribution is central to political conflict." Redistribute broadly and equitably, and you have the possibility of social justice; redistribute into the hands of the wealthy, and you risk turmoil and revolution when the have-nots catch on to what's going on. Piketty's argument is more descriptive than prescriptive; he notes that capital income, for instance, is subject to more unequal distribution than wage income, which makes good sense inasmuch as the rich tend to live on capital gains instead of salaries. The writing tends to be white paper-ish and technical ("in the United Statesthe P90/P10 ratio for income rose from 4.9 to 5.9 between 1979 and 1986"), and although training in economics isn't strictly necessary in order to follow the author's argument, it certainly wouldn't hurt in tracking such concepts as the relative elasticity or inelasticity of capital and, particularly, human capital. The latter contributes strongly to Piketty's case, which ends with a consideration of how Keynesian stimuli can influence long-term redistribution, if at all. Not for the numerically faint of heart, and those who are numerate may argue at pointsjust as Piketty's masterwork has inspired controversy. Still, a discussion worth having and a book worth reading. Copyright Kirkus Reviews, used with permission.

French economist and best-selling author Piketty (economics, Paris Sch. of Economics; Capital in the Twenty-First Century) first wrote this short book on economic inequality in 1997. In it, he examines the ways such inequality can be measured: the disproportion between capital and labor, and of income from labor, and the tools available to lessen such imbalance. Much of his discussion centers on France, but he pulls in data and examples from other countries, particularly the United States. Piketty concedes that although the work has been updated, it is still essentially a representation of the data available in 1997. Few of the cited references are later than the mid 1990s. Nonetheless, the author's insightful examination of topics such as employer discrimination, unions, and minimum wage laws are pertinent today. Though the author's style is not overly technical, it is academic in tone, and some background in economics would be helpful for full understanding. VERDICT Most readers will be better served by Capital in the Twenty-First Century, leaving students and economists as the likeliest audience for this title.—Lawrence Maxted, Gannon Univ. Lib., Erie, PA

Piketty's 2013 masterwork, Capital in the Twenty-First Century, made income inequality a household phrase—particularly for those who hope to move their own households to the White House. This earlier work, first published in 1997 and since revised and updated, is more approachable, and it arrives at the same dismal conclusion: the rich are getting richer and the poor, poorer. In the developed world, this phenomenon occurs most sharply in the U.S., where the top 10% collectively have 5.9 times the disposable income of the bottom 10%. In Sweden, by contrast, the figure is 2.7. Piketty isn't a sloppy or partisan thinker, and he methodically criticizes ineffective solutions from the left. In his view, the poor usually bear the brunt of these, whether in increased payroll deductions for social insurance, higher marginal income tax rates, or unemployment. Piketty, who believes income inequality leads to political instability, proposes a guaranteed minimum income or "basic income" as an efficient means of redistribution. He also explains how economists measure economic inequality and looks at the phenomenon's underlying causes (which do not include hedge fund managers or Chinese laborers.) If Piketty is right, inequality is increasing and cannot be cured by the free market; we must understand the problem to understand how to address it. This should be required reading for every concerned citizen. (Aug.)