How to Preserve Capitalist System? Review of Capital in the Twenty-First Century, by Thomas Piketty

Abstract

HOW TO PRESERVE CAPITALIST SYSTEM? REVIEW OF CAPITAL IN THE TWENTY-FIRST CENTURY, BY THOMAS PIKETTY Le capital au XXIe siecle [Capital in the Twenty-First Century], by Thomas Piketty, Paris, Editions du Seuil, 2013, 970 pp., EUR 25 (paperback), ISBN 978-2-0210-8228-9Piketty's book in the Twenty-First Century, published in France in 2013, has been considered with a large and deep interest all around the world (Piketty 2013). It was first translated in English and is now to be translated in Japanese. Of course, this book has qualities and was seriously made. But many books, especially in the field of social sciences, have qualities and are very seriously made without receiving this kind of welcome and attention. It is why I am tempted to find in the situation of high-level crisis characterizing capitalism today one of the roots of its bright success.On one side, capitalism is in big trouble, especially since 2008, and this trouble is not yet finished. This system is in big trouble not only because of crazy finance and because the moral values on which it is relying are vanishing. It is in big trouble because its historical role, which was to promote material production on a private basis, is going to end.On the other side, though most of the people in the world are probably criticizing this system nowadays, they do not want to change it. They are thinking that, even if capitalism is far from being perfect, they still have to stick to what they know. They are blind concerning the future, and they are reluctant to try a new social system, because they think this new system is eventually better but only in imagination. There are reasons to explain and justify their opinion.Piketty's work on is exactly this kind of book, bringing in the same time critics and support to capitalism, showing how much it is unbearable but exploring ways for making it bearable. It is why it is successful, relying on reformist and social-democrat inspiration. This kind of intellectual effort is an aspect of capitalism crisis, and it is why intellectual debate on these contradictory issues is so important. How is it possible to consider that, in the same time, capitalism is badly working but can work correctly? Piketty has the right to think this way. But he has the duty to bring the scientific proofs of what he writes. On the contrary, he is just bringing opinions, which are not proofs especially when he tries to prevent critics to his own assertions by criticizing Marx without serious knowledge of what he is debating. It is why his book is largely an ideological one.World Review of Political Economy has already published an important analysis of Piketty's book (Chen 2014). But this review of Piketty's in the Twenty-First Century is mainly focused on mainstream theories and on lessons for China. I would like, in this article, to bring a complementary view of Chen's article by focusing on some specific Marx's points.My article is divided in two parts. In the first one, I want to say how much the work of Piketty is a very accurate one concerning the three following aspects: (1) gathering statistical information on inequalities and capital, (2) describing the new and aggressive extension of since the end of the 20th century, and (3) showing how large are, now, economic inequalities and how higher they could be in the near future.But in the second one, I would like to discuss three points, which appear to me as strong weaknesses of his approach: (1) Piketty is ignorant of Marx, generally speaking, and more specifically, for example, of the Marxist meaning of K / Y, a ratio which, he says, is for him a wonderful tool. (2) Economic inequalities are not important and growing because of Capital but because of the capitalist structure, a concept that Piketty is also ignoring. (3) Solutions proposed by Piketty to fight against inequalities are imaginary ones, because imperialism is not ready to accept this kind of utopian wishes. …