Sorry, I wasn't trying to take over the thread or redirect it. I just re-read it and realized that it does that. I was just so taken with the coincidence that I thought about this last night. I apologize.
Now you have me curious.
It was one of my normal posts in which I quickly wander off subject and talk about what I am interested in talking about but am too lazy to host my own thread about. I remembered a personal hero of mine, Karl Polanyi. I did warn you.
I have to write my posts in a separate text editor so I still have a copy of it. Here it is.
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Noble Savage Piketty and Polanyi
By Bill Gates
on October 13, 2014
A 700-page treatise on economics translated from French is not exactly a light summer read—even for someone with an admittedly high geek quotient. But this past July, I felt compelled to read Thomas Piketty’s Capital in the Twenty-First Century after reading several reviews and hearing about it from friends.
I’m glad I did. I encourage you to read it too, or at least a good summary, like this one from The Economist. Piketty was nice enough to talk with me about his work on a Skype call last month. As I told him, I agree with his most important conclusions, and I hope his work will draw more smart people into the study of wealth and income inequality—because the more we understand about the causes and cures, the better. I also said I have concerns about some elements of his analysis, which I’ll share below.
http://www.gatesnotes.com/Books/Why-Inequality-Matters-Capital-in-21st-Century-Review
I also read Piketty's
Capital in the 21st Century. It is completely understandable by non-economists.
He developed a very good statistical base of data on the accumulation of wealth over centuries, mainly in France, England and the US. He has a solid data based understanding that it is bad for a capitalistic economy to have so much wealth in the hands of so few people. It chokes off the life blood of capitalism, innovation and risk taking and causes social unrest.
He has only a vague idea of why so much wealth has been accumulated by so few people. He needs to read the Austro-Hungarian/American social historian Karl Polanyi's book
The Great Transformation: The Political and Economic Origins of Our Time. Polanyi benefited from having no formal economics training, but as a social historian he recognized that the social history of mankind is dominated by the economic history of mankind, that economics is the most powerful social force. He was a socialist who morphed into a social democrat, what we would call a "New Deal Democrat.
His book came out in 1944, the same year as Hayek's
The Road to Serfdom, the second book that budding libertarians read after Ayn Rand, although most actually only read chapter 10. Polanyi knew both Hayek and von Mises, he was the anti-Austrian economics and often debated them. He was the first person to call the idea of a self-regulating free market a complete and a dangerous fantasy. Which it is.
Polanyi foresaw the Great Depression as well as the turn to market fundamentalism, the cult of the free market, and the economic problems that it would create and why the entrenched powerful would push market fundamentalism in order for them to accumulate every increasing amounts of wealth. Exactly what happened. There are numerous videos on youtube about him if anyone is interested in why we are having the economic problems that we are having now. His
The Great Transformation is a very readable book that is available for the Kindle at a reasonable price.
It is interesting that this thread appeared today. I just came across Polanyi again last night and I thought how much Piketty would benefit from Polanyi. Thanks Noble!
Here is the video that I stumbled across last night. It is with Fred Block who has written a book about Polanyi entitled
The Tensity of Market Fundamentalism, which is available on Kindle but for an un-Kindle price of nearly $40. I know that I will eventually buy it, but I feel better if I consider it for a day or two.