Capital Of The 21st Century Summary

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Imagine watching and reading the news about politics and economics, and we wondered how they are related to each other. First of all, economics is about money, income, and wealth, whereas politics is about government and voting. The book, Capital of the 21st Century, written by Thomas Piketty, can describe the relationship between politics and economics and demonstrate the theories and methods of political economy. Merely, the relationship between economics and politics has become the impact in society, due to the economy’s performance, which is politically a domain. If economics is not political, there is no bias nor prejudice on how the economy’s performance is improved. But, it is up to those who are elected to weigh in on this and decide. Many issues or concerns, in economics, are somewhat political due to the fact people make different choices (e.g. spending money for something). Also, the government always took fortunes out of our pockets and it is up to us to get them back as of this year or next. One method of the relationship between politics and economics is the inequality in the U.S., which is a system that is more democratic in some ways, though republic in some dimensions. Higher inequality of labor income …show more content…

Individual types of political-economic systems view the ideal relationship between state and market, and between freedom and equality, in different ways. Liberalism is the key in a political-economic system because it deals our freedoms individually over collective equality and the power of markets over the state. Liberals favor laissez-fair and strong protections for capitalism, which is the other key in this system. “Piketty points out that liberals were eager to demonstrate that growth helped people and therefore had evidence that capitalism was perfectly stable (p.

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