Book Cover

Capitalism,  The Way to a World of Peace and Plenty

Piketty’s Lament

French professor Piketty ‘s new book Capital begins with this proposition:

When the rate of return on capital exceeds the rate of growth of income, as it did in the nineteenth century and seems quite likely to do again in the twenty-first, capitalism automatically generates arbitrary and unsustainable inequalities that radically undermine the values on which democratic societies are based.

Ludwig von Mises explained how it was the government and finance capitalism that deliberately improved the return on capital by putting people out of work.

After the Napoleonic Wars, the United Kingdom chose to return to the pre-war gold parity of the pound and gave no thought to the idea of stabilizing the exchange ratio as it had developed on the market. Calamitous economic hardships resulted from this; they stirred social unrest and begot the rise of the anti-capitalistic agitation from which Engels and Marx drew their inspiration.

Piketty never mentions Mises nor Adam Smith’s warning to protect the free market from speculators (Smith called them prodigals and projectors) who would deflect capital away from the job-growth economy. The deflection is now almost total with 99% of Wall Street activity trading and less than 1% capital investment.

The amazing popularity of Pickett’s book demonstrates the prevailing anti-capitalist attitude, particularly in academia, with many delighted to find alleged flaws in capitalism. They should be required to read the whole book.

Ray CareyRay Carey

Ray Carey learned through managing companies for 33 years how to change the work culture to provide employees with their best opportunities to develop and contribute. This experience began as a 28 year old plant manager and later president of an electric motor company, and concluded with eighteen years as president , chairman, and CEO of ADT, Inc.

See Carey's autobiography of his work career in chapter two of his first book,

Democratic Capitalism, The Way to a World of Peace and Plenty.

For more information about Ray Carey and his advocacy of democratic capitalism, visit the pages of this website.