Part 5/5 Piketty or Marx?

Piketty or Marx? Capital in the Twenty-first century: a fundamental criticism Part 5 (last)

James Miller

Piketty does not mention the growth of credit, except in one instance, where he says,

"Broadly speaking, the 1970s and 1980s witnessed an extensive "financialization" of the global economy, which altered the structure of wealth in the sense that the total amount of financial assets and liabilities held by various sectors (households, corporations, government agencies) increased more rapidly than net wealth. In most countries, the total amount of financial assets and liabilities in the early 1970s did not exceed four to five years of national income. ... I should also point out that these international positions are in substantial part the result of fictitious financial flows associated not with the needs of the real economy but rather with tax optimization strategies and regulatory arbitrage (using screen corporations set up in countries where the tax structure and/ or regulatory environment is particularly attractive)."

Full:

https://jmiller803.substack.com/p/piketty-or-marx-capital-in-the-twenty-a4a?utm_medium=email