Millais didn’t read Piketty

Javier Millay does not agree with Thomas Piketty’s theory. The ideas promoted by French economists do not integrate the anarcho-capitalist philosophy of La Libertad Avanza. Piketty prioritizes his concern with inequality, arguing that when the profitability of capital exceeds the general growth of the economy, wealth tends to become more concentrated and inequality tends to increase, a major theme that runs through all of his writings. For this reason, the director of the Paris School of Sociology, which has revolutionized economic analysis in recent decades, recommends that countries take steps to reverse this pernicious imbalance. And, as is already known, the Argentine president hates the state. Millais has never read Piketty.

Piketty argues that the inevitable flip side of the concentration of wealth and the disproportionate increase in poverty it causes represents a scenario constructed and reinforced by political power and perpetuated in conjunction with its collusion with economic power. The author argues that if the rate of return on capital (what those who already have wealth earn: interest, rent, dividends, capital gains) grows faster than the economic growth rate (income and general production), then those who already own capital will increase their wealth much faster than the rest of the population. This is a toxic link, Piketty warns, and one that should not be established casually. Inequality is not an accident, but a structural tendency of capitalism.

in 21st century capitalAn essay that sparked a deep debate about modern Western economics, Piketty analyzed the history of capitalism and argued that extreme wealth inequality, a worsening feature of modern societies, can pose serious political and social problems because, among other things, it is caused by phenomena such as: The ways in which a country’s socio-economic strength is exercised. Published in 2013, the book warns of conditions that create greater inequality and suggests alternatives to avoid them, such as promoting taxes on large assets and incomes, and taxes aimed at taxing lavish family inheritances that fundamentally only entrench inequality in society. Piketty then expanded on this analysis in 2021. capital and ideologywhere he went further and ensured that social disparities exist. This is the product of ideological and political considerations rather than economic or technological limitations.

Through well-documented research, Piketty demonstrates that in the 19th and early 20th centuries, returns on capital were greater than overall economic growth and wealth was highly concentrated, as evidenced in aristocratic Europe. On the other hand, after the world wars and the welfare state, investment reversed and social inequality continued to decline as economic growth outpaced the growth in returns to capital. However, since the end of the Cold War and the beginning of financial globalization, which in particular made possible lower capital taxes, the rate of return has again exceeded the rate of economic growth, and inequality has risen again. And in recent decades, Inequality has reached historical records.

This is demonstrated by the G20 Global Inequality Technical Report released this week. From 2000 to 2024. The world’s richest 1% captures 41% of all new wealthcompared to the poorest 50% who received just 1%. The richest 1% saw their average wealth increase by $1.3 million between 2000 and 2023, while the poorest 50% saw their average wealth increase by just $585. This means that the increase for the richest 1% is 2,655 times the average increase for the poorest half of humanity. At the national level, in more than half of the countries, the wealth share of the richest 1% exceeds 27%, which is seven times the share of the poorest population. Meanwhile, in 2023, the average wealth participation rate for the richest 1% of the 210 countries analyzed was 27%, and the average wealth participation rate for the poorest 50% was 3.8%. Richest 1% from 2000 to 2023 Wealth share increased in more than half of the countrycovering 74% of the world’s population.

Piketty, it’s worth clarifying, It does not seek to eliminate capitalism, but rather proposes regulating it in order to democratize it. His proposals include a progressive global tax on wealth and inheritance, global fiscal transparency to avoid tax havens, and massive investments in education and public services, among other possible measures. In turn, it points out that Latin America is the most unequal region in the world, with low fiscal transparency and concentrated inherited wealth, problems that exacerbate this phenomenon.

Piketty does not seek to eliminate capitalism, but rather to regulate it in order to democratize it.

In Argentina, the Gini coefficient, which calculates inequality in the distribution of wealth, was 0.424 in the second quarter of 2025, Indec reported. This index is used as a measure to quantify inequality in a country and takes into account the distribution of wealth between different sectors of society. Gini varies from 0 to 1. The closer it is to 1, the more concentrated wealth is; the closer it is to 0, the less inequality. Argentina’s latest record means a decrease compared to the same period in 2024, when the value was 0.436. However, this still represents a very dangerous scenario. Wealthy families’ incomes were 13 times higher than low-income families’ incomes. in Argentina in the second quarter of this year. Inequality continues to be one of the biggest social dilemmas facing this country.

A UNICEF report released this week points to a reduction in poverty among vulnerable households, but at the same time Significant increases in debt in the most vulnerable sectors. This is certainly an encouraging result, as in Argentina the number of households with children and adolescents unable to meet their current expenses decreased from 48% to 31%. However, according to the same study conducted by UNICEF, household debt appears to have increased last year, from 23% to 31%. This means that one in three families living in poverty have to borrow from credit cards, bank loans, financial institutions and financial institutions to cover their expenses. If you add in lending via virtual wallets, applications, or informal mechanisms, this number rises to 45%. That is an alarming reality. Almost half of poor households must take on debt to survive.

In Argentina, a very harmful phenomenon is intensifying. The poor are getting poorer and the rich are getting richer. However, the country has not taken any steps to counter the dilemma. Because, as already mentioned, Millais has no interest in reading Piketty.