Introduction
Economics is name and the field of the social sciences that specifically associated with the activities of economic used to understand the process that used for the production, consumption of goods and distribution of the services in the economy. The economy of a country depends heavily upon some of the dominating aspects, as economics is the field which specifically associated with the earning and spending of money at a perfect place in a best possible manner (Mayer, p.12).
The term economics comes specifically from the ancient times of Greek, and according to them it is a science of management and specifically associated with the movement of the money. It usually based upon the level of interactions and the economies of work accordingly. The entire field of economics is more than effective and essential for the sake of an economy; however it is divided into two parts which are macroeconomics and microeconomics. Both of these fields are essential to understand because both of these things have a definite edge and information embedded in it. Microeconomics is the type of economics that specifically associated with the economics of the individuals, while macroeconomics is the type of economics associated with the economy of the country as a whole.
Among numerous concepts that specifically stride under the field of economics, capitalism is one of them. There are number of authors who specifically written many things about this term, with a special emphasize on the wordings or book of Thomas Piketty with the name of “Capital in the 21st century”. Apart from analyzing the viewpoint of Thomas Piketty in the paper, it is also required to analyze that whether or not the term and work of the author is right or wrong. The assignment is bit tricky and deep, as it requires extensive research accordingly.
Analysis & Findings
Capitalism is referred as an economic system in which the trade, means of production as well as the industry are largely and entirely depends upon the private sector rather than on the Government sector. It means that in Capitalism, all the owners of the industry and companies are privately held companies not the government. It is one of the most important way of earning profit in a best possible and effective manner.
There are some focal characteristics that found in the field of Capitalism which includes the amount of capital accumulation, competitive market and wages of the labors. Under a capitalist economy, the prices of the goods as well as the earnings of the labor would have been reported and defined from the fluctuation of the goods. Degree of competition is one of the most important aspects that found in the Capitalism economy. From the theoretical definition of the capitalism, it is found that the chances of an economy to rise in the capitalism are high and effective, and they would be in the right place for the exchanges of the services. The current economies have now become a part of the Capitalism economy, and some of the major capital economies are the United States (US) and Canada. The businesses operates in these regions have a definite impact of different aspects. There are certain criticism found in the Capitalism and in the Capitalist economy, and it is required to describe the same later on. However, a special emphasize is important to given on the book of Thomas Piketty.
Analysis of Thomas Piketty’s: Capital in the 21st century
Thomas Piketty is a French economist who works hard on the analysis of wealth and equality of the income. Thomas Piketty serves as a professor in the Paris School of Economics. Thomas Piketty is a well known professor, and his recently published book “Capital in the 21st Century” had attained a remarkable concentration and effectiveness. The selling rate of the book was quite high and effective. The main theme of the book emphasize on the concentration of the wealth and its distribution over the period of 250 years. According to the main theme of the book, the return on the capital would be higher for those countries of the world wherein the power and growth of economics is high and mobilize. But, this thing is not right for the economies as it will increase the level of inequalities among the distribution of money and income in an effective manner (Mayer, p.12).
The main thesis of the author was to analyze the capitalism in the 21st century, and what are the methods of equality and inequality lies in it. The central thesis initiated by Thomas Piketty in the book is that when the rate of return (ROR) on the capital of an economy is greater than the actual rate of economic growth in a long run, then it creates number of problems and issues for the economies of the world. The result of the same lies in the concentration of the wealth and unequal distribution of wealth causes a social and economic instability. According to Thomas Piketty, this particular inequality of the wealth increases the level and amount of the poor people in an economy, because majority of the wealth would be distributed among the rich people, and there are very low amount of income which actually supports the poor people. There are number of countries in the world wherein the current economic system is implemented, and some of the major examples are of Pakistan, India, and some of the major countries of the world.
If the example of economies like the United States (US) and Canada will be taken into consideration, then it is found that the economies are somewhat utilizing the stance of capitalism, however the rich people are so generous who would granted their money to the poor people through the NGOs and other organizations. Thomas presented different ideas regarding the effectiveness of this theory and found effective tax system is the only way from which inequality in the income can be resolved completely by the organization in a best possible manner. Thomas also found that the current situation of the economy is quite rigid and competitive, in which there are number of countries of the world which are competing with each other to have a definite edge over the other players in a definite time period. Thomas Piketty emphasized on the fact that trade and industry are in the hands of private companies rather than in the government entities, however Thomas criticized on this section as well. According to him, there is some proportion of the ownership should be supported by the Government entities as not everything can be lean over the privately held companies of the world. Thomas Piketty found extremely confident in having the effectiveness is concerned, and he also found very confident in enhancing the economic power of the companies accordingly and effectively at the same time.
Comparing of thoughts of different authors
Economics is one of the largest fields in the world which have numerous to seek the effectiveness of different authors. There are certain authors which are made accordingly in the actions. According to some of the authors, capitalism is an effective thing for the economies as the authors are in the favor of providing the essentials. According to these authors, privately held companies are the most important companies for the world because it has the ability to increase the financial belongings in particular.
There are number of economies of the world which are moving accordingly in this particular society, and with the help of effectiveness, these economies can attain effectiveness. There is a type of mixed economy as well in which there are certain different aspects that could be found accordingly. Number of authors like Adam Smith and Keynes are in the fact of providing the capitalism to the economies as it is one of those strategies of the world from which economies can enhance the level of money supply towards their companies. Keynes is one of those authors of the world, who would require transforming the economies of the world in different aspects. According to Keynes, it is more than important for the economies of the world to spend the money on their economy, as it is the only strategy from which the level of interaction of the economies would increase considerably. Keynes was one of those authors of the world who possess effectiveness in their earnings and found that spending of money is extremely essential for the countries of the world to enhance their productivity. Spending is one of those methods of the world from which the economies can provide effectiveness in the financial crisis as well. According to Keynes, capitalism is one of those methods through which the entire economy is in the hands of the private companies of the world, and there will be no existence of government organizations, hence privately held companies are getting the right things at the right time.
Apart from Keynes, there are some other authors like Samuelsson is not in the favor of the capitalism, as against them it is one of those methods from which the level of poverty and inequality would increase in different parts of the world. At the time of economic crisis, this particular method should not be used because privatization sometimes is ineffective for the companies, as it do nothing but to increase the level of unemployment and inequality. Increasing inequality is not at all effective for the economies of the world, and there were number of countries of the world who encountered the same problem before. Capitalism is not at all effective for the economies of the world as per the analysis of Samuelsson. Now there is a need to have the personal opinion as well on the working of Thomas
Conclusion
Economic consequences and economic scenarios re more than essential for sake of a country, and economic prosperity is the one that they want to achieve them accordingly. In both micro and macro level, the essence of prosperity is essential. There are certain kinds that specifically found under the field of economies and among them, there is a name of Capitalism economy as well. As per the definition, capitalism is a type of economy in which the private firms are in-charge of the economy and government entities would not be effective in their work. It is one of the major ways to increase the level of investment towards the countries of the world, and there are number of authors who wrote about it. It is require analyzing Thomas Piketty book with the name of “Capital in the 21st century”. From the study of the book, it is found that Thomas have identified that tax collection is essential for the economies, and it can be enhanced with a sort of equality and transparency in the system for a long span of time in particular. I am also in the favor of the working of Thomas
Work Cited
Mayer, David A. The Everything Economics Book. Avon, Mass.: Adams Media, 2010. Print.
