THE NATURAL TENDENCY OF CAPITALISM IS TO PRODUCE EQUALITY

You don't believe me.

One might call it, and I have called it, convergence.

It is, by far, the more fundamental and monumental tendency.

The so called natural tendency to produce inequality was not even an insight of Piketty. It was a black letter law of liberal economics history.

DK :

"...That, we should note, is true regardless of the degree of free trade and globalization at any particular moment.  If globalization increases economic growth overall--and it evidently does--it will increase inequality more rapidly, but capitalism itself, not globalization, causes inequality--unless something is done to reduce it..."

Free trade and globalization increase equality more than they do inequality. Capitalism causes both at the same time. 

Tramp Globalization.

As even Marx had seen, capitalism itself leads to globalization. It is the natural result of under restrained capitalism.

Friday, May 18, 2018

RE DK CURRENT POST LEFT ECONOMICS

".......Another DK quote:

"...Piketty's most fundamental insight: that the natural tendency of capitalism is to produce inequality, because capital accumulates more rapidly than the economy grows as a whole.  That, we should note, is true regardless of the degree of free trade and globalization at any particular moment.  If globalization increases economic growth overall--and it evidently does--it will increase inequality more rapidly, but capitalism itself, not globalization, causes inequality--unless something is done to reduce it...."

The natural tendency of capitalism to produce inequality was a tenet of Marx long before Piketty, not because capital accumulates more rapidly, but for other reasons Marx described."