Capital of Piketty 9:  Things that make inequality firm 2

ピケティの資本論 9: 格差を強固にするもの 2


< 1. a catastrophic plunge in stock prices of New York >

< 1. ニューヨーク株価大暴落 >

Last time, we looked at the underclass became poor more and the inequality was strengthened.

This time, we look at a wealthy class became richer and the inequality was strengthened.





The income decline of underclass and the income increase of wealthy class come out of unitary construction

What would happen to the wealthy class that should have lost many assets at every financial crisis?

When I see an American economic data, they achieved recovery by several years and rather had more large assets.

We will see the situation.






< 2.   American economic recessions, vertical axis: unemployment rate, transverse axis: number of months >

< 2.米国の景気後退期の比較、縦軸:失業率、横軸:月数、>

Explanation: it shows the biggest unemployment rates of the 11 recessions and its periods.

Between this recession periods, being distressed mostly was the underclass.

And for super-rich people, it was the chance of the jump that becomes richer.

解説: 11回の景気後退期の最大失業率とその期間がわかります。




< graph 3. proportions of income of the top 10 % in America, by“Capital in Twenty-First Century” >

< 3. 米国におけるトップ十分位の所得占有率、ピケティ「21世紀の資本」より >

Explanation: it shows the proportion of the income of top 1%, top 5%-1%, and top 10%-5% in American total incomes.

After 1980, the proportion of income (8-24%) of the top 1% goes down once each economic recession period of graph 2, but suddenly recovers afterwards and increases more.

The proportion of the income of top 10 in American total incomes increased rapidly, it became 48 % in 2010, and the tendency is remarkable as more rich class.

解説: 所得上位1%、5―1%、10―5%層の所得が全米総所得に占める率を示す。



What is taking place?

This mechanism is simple, and is to help the cause banks and investment companies by our national tax for emergency countermeasures of government after a collapse of bubble economy.

On the other hand, the government reduced the tax amount from the expense used for the relief of the socially vulnerable, and the underclass became to suffer more.




“If banks are smashed, it becomes the true Great Depression, and it becomes serious damage having to need ten years or more for revival”

In this way, surprised people have gone to bed crying.

I cannot say badly about doing a financial crisis calm by money supply.

But it is same as helping a diabetic that continues food satiation with insulin repeatedly, and only worsens him after all.





Having contributed to income increase of the top 1 % in graph 3 was capital gain (profits of stock and credit).

Central bank issues lots of currency for economic recovery (monetary easing), and the excess funds of wealthy class and companies invest in speculation, and it invites the next bigger economic bubble.

And if they fail, they are helped also.






< 4.  a change of currency circulation of major countries >

< 4.主要国の通貨発行高の推移 >

Explanation: The currency circulations of each central bank are all higher than the GDP growth rate, but only it of Japan (blue line) is low level.

As a result, it became appreciating yen, but the influence of the Lehman shock in 2007 became slight adversely.


What did take place by it?

解説: 各国中央銀行の通貨発行量はいずれもGDP成長率よりも高いが、日本の通貨発行量(青線)だけが低水準です。





< 5. a change of total stock price in the world main market >

< 5. 世界主要市場の株価時価総額の推移 >

The difference of the world total stock price in 2007 and 2008 in graph 5 is 7,200 trillion yen (120 yen/dollar).

The difference of Japan exceeds 200 trillion yen, and is equivalent to about half of the GDP.

Only people to be able to ride on this insubstantial thing are possible to continue increasing assets.

Thus, at every economic bubble burst, the inequality of underclass (the weak) and wealthy class spread more.

If it is left unsolved, it keeps deteriorating.








< 6. the top marginal tax rate of the income tax in main countries, by“Capital in Twenty-First Century” >

< 6. 主要国における所得税の最高税率の推移、ピケティ「21世紀の資本」より >

Explanation: USA and United Kingdom decided on a progressive tax for the inequality reduction as a forerunner in the world once.

解説: 米国と英国はかつて世界に先駆けて、格差縮小のために累進課税に踏み切った。

In fact, government caused the inequality expansion

The asset increase of wealthy class was not taking place in graph 3 from 1940 to 1980.

This is because the U.S. government imposed high progressive taxation (inheritance tax, income tax) of graph 6 only during this period.

In other words, current unhappy result occurred because the U.S. government supported wealthy class in the taxation system and monetary policy.

Besides, the world has imitated this competitively.

The policy change of government is necessary to stop the vicious circle of the economic bubble burst, and to prevent inequality expansion.


Economist Krugman blames the American policy change after 1980 ‘s thoroughly in “ The conscience of a liberal”

And Piketty also is similar.


This continues next time.













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