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The Business Book Of The Year Award

Thomas Piketty, the notable French economist, is the author of the controversial yet acclaimed ‘Capital in the Twenty-First Century’. Now, Financial Times and Mckinsey’s 2014 Business Book of the Year
15 Nov 2014 00:00
The Business Book Of The Year Award

Thomas Piketty, the notable French economist, is the author of the controversial yet acclaimed ‘Capital in the Twenty-First Century’. Now, Financial Times and Mckinsey’s 2014 Business Book of the Year Award has been awarded to Piketty for his outstanding in-depth coverage into the way capital is distributed to be in the modern age.

The Award

The award, in its 10th edition, is given to the book that provides “the most compelling and enjoyable insight into modern business issues” that includes management, finance and economics. Mr. Piketty will be awarded a £30,000 (£1 = $1.58) amount as part of the award. The competition consisted of seven judges who weighed the merits of six finalists. All the finalists will, however, still receive a £10,000 for outstanding contribution to the global world.

The Book: Much-needed insight into the Politics of Economics?

The book discusses income inequality, democratization of economics and the prospects of economic growth. The key driver of inequality – the tendency of returns on capital to exceed economic growth – threatens to generate extreme inequality that 99% of global societies face.

The book is built on more than a decade of research combining the economic paradigm of three centuries spread over 20 countries. Some believe his outlook could have a drastic impact that could determine the course of future economic policy.

A grand theory

Piketty’s inspiration lies from a simple equation that is mostly contradicted by Keynesian economic theory.

He believes that r > g where ‘r’ implies the rate of return on wealth and ‘g’ implies the economic growth rate.

Thinking precisely, when your growth exceeds that of the country’s as a whole, you deviate more from the mean and generate inequality in the population distribution.

Mr.Piketty’s theory comes from analyzing the past, which has led him to believe that the importance of wealth is reaching levels as seen before the First World War.

He awakens your conscience into thinking about this and closes the book with a recommendation that there should be a global tax on wealth to counter the inequality that fuels global socio-economic tensions around the world.

Criticism

While he’s bagged the accolade for the book, there’s been plenty of criticism to the book. Obviously, Success breeds the criticism and more so, when it awakens your sub-conscious mind to think the unthinkable.

A lot of economists and policy makers have realized the impact of his findings and have begun to debate on it.

 

 




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