Capital for the Twenty-First Century: A Response to ‘Capital in the Twenty-First Century’ by Thomas Piketty

Abstract

Purpose

We construct an embankment on a historical flow. The intention is to design a durable structure for any country seeking to pull itself out of the current recession.

Methodology/approach

Thomas Piketty’s classic is subjected to a close and novel scrutiny. The history is downplayed and the nascent macroeconomics fleshed out and extended.

Findings

A distinction must be made between rentier and productive interests and credit directed to the latter. Both private and public investments are essential. Socially designed projects must be originated and supported through State Development Banks.

Practical implications

Individual components have long been in existence. Green technology, social funding and the like are increasing in importance. However, they have not been embraced in a simple overarching model.

Originality/value

We offer a rationale for the government bond. Finance is introduced rigorously into the macroeconomic framework. The basis, though, is employment.

Citation

Correa, A. and Correa, R. (2016), "Capital for the Twenty-First Century: A Response to ‘Capital in the Twenty-First Century’ by Thomas Piketty", Lessons from the Great Recession: At the Crossroads of Sustainability and Recovery (Advances in Sustainability and Environmental Justice, Vol. 18), Emerald Group Publishing Limited, Leeds, pp. 273-287. https://doi.org/10.1108/S2051-503020160000018012