Income and Wealth Inequalities in Thomas Piketty’s Considerations

(Purpose) The purpose of the study is to present Thomas Piketty’s demand view on the issue of growing income and wealth inequalities in highly industrialized countries. It should be indicated here that in his research, Piketty not only explains the mechanism of growing inequalities, but also defines the tools to tackle inequalities (a combination of theoretical and pragmatic views). (Methodology) The aim of the study is achieved through the literature review method as well as the descriptive methods, complemented by comparative analysis.

(Results) Piketty’s considerations clearly show that the problem of income and wealth inequalities will not disappear spontaneously, so market automatism will not only not eliminate their causes, but also will not create conditions for a fair distribution of production outcomes between capital and labor. Therefore, reducing the level of inequality requires a return to the concept of the welfare state.

(Contribution to the discipline) The conducted analysis may become part of a larger research project showing the relationship between the level of economic development and its impact on the scale of income and wealth inequalities.