Brain-Wise – Book Summary

Time allocated to philosophical controversies without reaching a state of facts meets several mind-blowing aspects: the understanding of God, the power of free will, and how would you describe yourself – as what?

The brain is a complex entity capable of achieving almost anything, yet restricted in so many ways. By all means, underachievers often feel this “limited policy” on their skin not to mention, the opportunities that faded away due to lack of courage. Nevertheless, don’t feel discouraged, the best of the best is on its way. Every individual on this planet has immense potential to accomplish almost anything! Nonetheless, underestimating one’s capacity has become societal reality – a problem that needs to be addressed with caution. Before you enter into the world of brain-philosophy, try to broaden your perspective.

According to neuroscience experts, every possible change starts and ends with you. In the light of this discovery detailed explanation rises to the surface. Every personal trait associated with you, no matter how complex or complicated may seem, influences your everyday motion. This neuro-chemical represent the foundation for any transformation or change that may occur. To put it differently, it’s evident that souls are of immaterial nature, according to many cultures, beliefs, and religions. However, no facts can support nor oppose this theory or philosophy. On the other hand, free will is something that people still have difficulties to understand. Imposed opinions promoted through media channels are trying to suffocate that freedom. Logically, every person needs to choose its path, but that’s not the case.

Souls, mind, free will are running up against a brick wall of unproven theories, probably never to be proven. Patricia Smith Churchland – the author of “Brain-Wise,” suggests a new point of view to emerge. As an illustration of this advice, she advocates for something natural to all people like consciousness. If all other things create divisions, self-awareness despite its mystery is the only absolute merger of humanity. In order to design a pattern of perfectly instinctive and straightforward neural activities, free will cannot be missing. In what way does this affect philosophy?

Philosophers even today tend to “play” with big questions, conspiracies, and mysteries. To get one step closer to them, help from the other disciplines is crucial. Over the course of hundreds of years, science has reached a new stage and progressed to a point where the humankind has managed to resolve many questions, leaving only a dozen more left. Neurophilosophy represents a merger between newly established neuroscience and ancient philosophy.

The mastery of writing an inspiring book is composed of precisely defined facts, breathtaking theories, and most importantly intriguing mysteries. None of them are missing, which gives a clear sign that this book will encourage you to think and separate facts from ideas. A prodigious amount of research has been done in order to compile many things into a single masterpiece. Patricia Smith Churchland announces a new scientific discipline known as Neurophilosophy, a term used to indicate two utterly different perspectives. According to her, relying on single one of them is going to narrow down your spaciousness and leave you strangled into your shallow thoughts. A broader view is vital to forge the brain-soul relationship which ultimately melts into a single unit.

To understand the Neurophilosophy concept, GetNugget adopts Churchland’s approach by promoting this excessive and valuable methodology. As such, it comes highly recommended for all people keen to move beyond the daily concerns and challenge themselves on another level.

Who is this book for

Whatever you take for real, another person can interpret it differently from another point of view. It is an infrastructure created by your imaginary force which contradicts the series of neural interactions. You may have heard this term before, Darwin and its theory are a perfect example of such a vision. Division exists between science for analyzing the mind and inner knowledge for understanding one’s self. Can we integrate these two types of disciplines? The answer is yes! Science remains a dusty book even today, not every mystery is resolved, and as a consequence of that, a new idea has risen. People use emotions to improve their decision-making abilities, but neuroscience is something more profound. No evidence of the “immaterial” exists, but it’s one of those things you must understand rather than see! GetNugget contributes to clarity and encourages you to dive into neuroscience to discover your life-mission.

Author’s expertise and short biography

Patricia Smith Churchland is an expert in ancient philosophy and heads the philosophy department at the University of California. Despite her contribution to the merging process she also tries to educate other individuals on subjects related to Neurophilosophy at the Salk Institute. As a writer, she wrote Neurophilosophy and co-authored On the Contrary.

Key Lessons from “Brain-Wise”

1.      Discover the real “Self.”
2.      Epistemology’s two vital questions
3.      Mind tricks and true self

Discover the real “Self.”

Descartes above other things declares that humans have a conscious immaterial part in themselves – known as the inner-self (which is not the egoic personality). Although this field is far beyond the reach of Science, NeuroPhilosophy enters into a whole new world by explaining the existence of it.

Epistemology’s two vital questions

Epistemologists tend to answer two questions: 1) How to define knowledge, and 2) Where to find it? Mind Research is perhaps the best way to solve this enigma. Seeking knowledge doesn’t make you a knowledge-seeker. You have to know where to look at.

Mind tricks and true self

The brain is like a factory – referring to its various functions. Investigate around that “I” notion – become vigilant. Don’t take this as persuasion; your outer self is just one aspect. To understand the whole package, dig deep into your heart and find the immaterial entity.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one-click delay – check it on Amazon.

Outliers Summary – All you need to know about the book!

How to reach the top? Be a hard-worker; practice more and more –be at the right place at the right time.

People today are facing one challenge. What is the key to success? Some people say talent, others may say hard work, so the exact formula is yet to be discovered. The collective opinion about the ultimate success that prevails today is based on people’s belief – hard work pays off. Numerous of people are opposing this theory because lots of individuals who worked hard didn’t succeed. So, you’ll have to find the answer to this mystery. Talent? Perhaps, talent is necessary, but it is not a crucial element. Athletes should be gifted and able to perform things that ordinary people can’t do. They have to be unique in their own way. According to Malcolm Gladwell, this theory represents the comprehensive explanation of why a small percentage of the people succeed and do well in life overall. By leaving aside other relevant factors of success, this traditional model can easily distort reality. It somehow personalizes these processes which are the embodiment of our social culture. It thus you’ll find yourself looking for talents in the wrong places. Canadian Hockey League is the perfect example.

No one can deny the fact which indicates that Canadian Hockey players are superb athletes. Their stamina and talent are at the highest level possible. As a consequence of their fitness, many teens can easily turn professional. Giving everything you’ve got to reach the top is only one part of the story. The other half is more meaningful; it is what biologists call the “nature” of every living thing. It is this surreal ability of some individuals to strive for great successes and move beyond their limits.

Malcolm Gladwell writing style is easy to understand, as such this book may seem like a long ride to freedom, his examples are covered and supported with facts. These examples underline one particular point; a mix between talent and hard work is the only path to success. The book answers questions and critics. Malcolm does an excellent job when it comes to challenging present ideas of where and how success emerges, by introducing the audience with new standards capable of changing the course of prosperity. His detail orientation allows him to successfully govern processes leading to ultimate success, which often happens behind closed curtains – unnoticed. There many potential paths for social change and professional advancement according to Gladwell. As engaging as this book can be, Outliers has its flaws. It is interesting to witness the tackling that occurs between Gladwell and many other strong individuals who’ve tasted success without the need of his methods and techniques. You have to remain flexible; life has its mysterious ways. However, you should try Malcolm’s models because they are useful, interesting and fun. If you are a free individual, an open-minded person; this book will get the best out of you.

Who is this book for

It is not easy to transform any person’s mindset; nevertheless, you as a part of the whole, should aspire for that change. Don’t become a member of a group. Don’t be an individual who overthinks everything, too many details are not helpful. This counterproductive method is used by many; it is a painful reality that we must face openly. Life throws us challenges, people obsessed with details always feel trapped and unhappy. Such an adverse impact must not continue, so you have to move away from these adventitious roots. Different traditions and cultures are the embodiment of how people from different countries interpret education, work habit, and dedication. If you want to inform people about the essential elements of success, you should study their cultural views and understand their perspective. The whining and complaining attitude will get you nowhere; according to Malcolm, a person must take every advantage that occurs in life and to learn from each mistake. As a book intended for everyone, it gives you simplicity and wisdom; knowledge and principles; it’s up to you.

Author’s expertise and short biography

Malcolm Gladwell is an English-born writer, journalist, columnist, motivator and a well-renowned speaker who currently writes for The New Yorker. He was born on September 3, 1963, in Fareham, Hampshire in the UK. England is his birth-country however, at the age of 6 Malcolm alongside with his parents moved to Canada. Malcolm declared that his mother was his perfect role model for starting his career as a writer. To this day, Malcolm Gladwell has written five books: The Tipping Point; Outliers; What the Dog Saw: And Other Adventures; Blink; David & Goliath.

Key Lessons from “Outliers”

  1.       Face violence openly, let your actions speak for itself
  2.       Anything can happen in the air
  3.       Hard work beats intelligence

Face violence openly, let your actions speak for itself

For decades, fierce family quarrels had an impact on Harlan County, Kentucky community. Many people testified that they’d witnessed bloodshed among close relatives. The killing became a habit, so the people wanted to enforce some laws and do something about this issue that troubled them. Facing violence openly and bravely became an integral part of Appalachian culture.

Anything can happen in the air

The environmental upbringing plays its role in person’s behavior without asking for permission from anyone. The same thing goes for social influences. The question is – How do accidents happen? Although commercial airplanes are known for its highly advanced technology and dependable machinery which cannot burst into flames, sometimes disasters occur. These crashes that take place from time to time are the result of pilot’s unintentional mistakes.

Hard work beats intelligence

Knowledge represents the doorstep to success: Only a smart person is ready for the difficulties that life unfolds. Apart from that, intelligence doesn’t have the impact on person’s ultimate achievement as hard work.

If you feel like this is the book for you, feel free to contact us for further information. You can download our mobile app and share your experiences with us. Between you and your book, there is a one click delay – check it on Amazon;

 

Wikinomics Summary

Wikinomics Summary

How Mass Collaboration Changes Everything

We live in a world which transforms rapidly. The digital age creates many new circumstances for all of us. It poses new opportunities, new constraints. So what has changed? And how do those changes affect you and the age of Wikinomics? Our “Wikinomics Summary” explores these questions and many more.

Now, let’s dive right into it.

Who Should Read “Wikinomics”? and Why?

It is relatively challenging to specify a group of readers to whom this book would be intended. Magnificent piece of work written for HR Managers, Scientists, Futurologists, and Experts who wish to expand their views and get a broader perspective of where this digital age is going.

Students known for their thirst for new knowledge would find Don Tapscott and Anthony D. Williams’s work as one of the most extraordinary and exceptional business guides they have ever read. Known for its first-person examples and high-quality tips “Wikinomics” is no wonder an all-around book that can answer any business related question.

Next, before we thoroughly examine the book’s content, we’ll cover the authors’ bio and their expertise.

About Don Tapscott and Anthony Williams

Don Tapscott

Don Tapscott was born on July 1, 1947, in Toronto, Canada. He is an author, consultant, business innovator and executive that is focusing on combining different business strategies that would generate an organizational transformation in the society. As a founder of New Paradigm, that is currently owned by NGenera,  and as a CEO of the Tapscott Grouping,  Don Tapscott encourages companies to overcome organizational boundaries by associating with the latest technologies.

Anthony Williams

Anthony D. Williams is a Canadian Born author, a senior fellow at the Lisbon Council, founder of the Anthony Williams Consulting in Toronto and a strategic adviser to different governments, global institutions, and other Fortune companies. He was born in 1974 in Toronto, Canada. Anthony Williams and Don Tapscott as co-authors of Wikinomics are repeatedly dismissing any criticisms based on their book without answering any of the critics.

Okay, now that we covered the basics, let’s continue with the detailed summary.

“Wikinomics Summary”

Don Tapscott and Anthony D. Williams through their Wikinomics book try to intrigue readers in numerous ways. The book examines all possibilities of massive data sharing and participating in open-source software that is available to all business participants, consultants, and experts.

Back in the old days, sharing and delivering an information required a lot of effort, now all you need is a computer with unlimited access to all sorts of free encyclopedia sites. So to speak every user is familiar with the fact that the digital era contributes to a new highly educated population.

Now, what can you expect while reading the book?

Well, some of the examples that you may run into while reading Wikinomics would probably sound familiar, while others may seem a little surprising and maybe even shocking. These authors are so intently a part of the new era that makes them feel obsessed with knowledge -seekers – for instance,  sometimes specific actions or changes that are done by few enthusiasts seem like some internet transformation procedure.

However, for the majority of times, these enthusiasts fail to provide the precise definition or supporting and digital data.

Wikinomics wants to inspire readers to adjust their way of thinking to the new dynamic and digital age, by becoming critical decision makers, educated and proficient in the business sphere in almost any industry.

Here’s the thing:

The end reader would feel like he is reading some business guidebook, changing its point of view from time to time and for the majority of times, it would sound like a proclamation of ideas and concepts, valuable to the business community.

The world would continue to change and evolve. Therefore mass collaboration process would represent a vital factor in those changes. The new era would be built on openness, globalization and business integration. Organizing data would become much easier as finding data and sharing it would be a relatively easy process to conduct that can lead to minimizing organization boundaries that we’ve faced earlier.

A few broad key lessons can be extracted from the book’s content. Which are they?

Read on!

Key Lessons from “Wikinomics”

  1.      Understand Wikinomics
  2.      Four Basic Principles of Wikinomics
  3.      Ideagoras and their meaning

Understand Wikinomics

“Wikinomics” is the single letter word combined with two terms: “wiki” (that represents something being done quickly and fast) and “economics,” as such Wikinomics represent a term of quick interaction. These interactions are made possible by the digital opportunities that we’re able to take advantage of in today’s society. “Old-fashioned ” traditional businesses still maintain and keep unnecessary and evident boundaries.

These organizational barriers are backed up with a tightly controlled economic captivity of limited information that flows in and out. If you as a company implement Anthony Williams and Don Tapscott’s principles and norms, all shareholders will notice an instant “freedom” change, that would indicate long-term success.

Four Basic Principles of Wikinomics

The four primary principles that forge Wikinomics are: “Open communication, peering, sharing of information and globalization.” Openness or Open Communication refers to inciting open-society mentality with freedom of speech in a transparent, clear and concise way in favor of eliminating any organization boundaries that may occur among the shareholders.

Sharing of Information as the names tell us indicates an easy, fast and limitless way of accessing all sorts of data.”Peering” is an integral part of open society. It illustrates business and organizational interactions among the employees to be held collaboratively, not hierarchically.

Globalization makes us aware of the fact that overseas competition and partnerships are going to occur as soon as any company decides to infiltrate its product to the global market.

Ideagoras and their meaning

In ancient times, people used to meet in places called agoras (today’s marketplace), where philosophers gathered and taught the people on different subjects. Today’s online world shares the same idea as Ideagoras back then, Modern Ideagora represents something similar to a virtual “marketplace of ideas, financial solutions and concepts.

The Modern Ideagora concept is still in the process of development, yet solid and visible examples are present in every corner. As an example we would take the case where: Approximately 100,000 Scientists from 175 countries are assembled in one InnoCentive Service where they can share ideas, information, data and ask questions.

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“Wikinomics” Quotes

“Peering succeeds because it leverages self-organization—a style of production that works more effectively than hierarchical management for certain tasks.” Click To Tweet Increasingly, we are all wittingly and unwittingly co-conspirators in building one massively sophisticated computer. Click To Tweet All one needs is a computer, a network connection, and a bright spark of initiative and creativity to join the economy. Click To Tweet The new web is about verbs not nouns Click To Tweet

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Our Critical Review

In “Wikinomics” the authors try to illustrate their narrative by presenting examples of companies and projects that have succeeded by using group collaboration. Although various examples are cited, which are credible and serve their purpose, the authors use an authoritative tone to present them, which may put some readers off. Also, although the cases the authors present are true, much of what they say has been already examined by other authors. However, is a good book for people interested in the subject.

Capital in the Twenty-First Century Summary

No economics book published in recent years has had as much impact as Thomas Piketty’s “Capital in the 21st Century.” The book is a masterpiece with over 600 pages, which discuss how globalization and economic development impact our lives, the economy, and the contemporary world. Piketty, after years of research, brings us a major essay on how capitalism generates inequality for society, increasing the concentration of wealth. In his work, he traces a history of how the economic regime has reached its present state and assesses a future prognosis for the world economy.

The work is a benchmark for economic studies, but the 12min team knows that not everyone has the time to devour this bible. That’s why we synthesized the book and created a micro-book so you can learn its key ideas in no time. Shall we go?

Introduction

Capitalism is a powerful force in economics, with a long history of entrepreneurs who have worked hard creating companies, making money, and returning it to the economy in the form of investments. With its roots in the fourteenth century, this economic system has been central to the construction and development of many markets in the world. Economists have argued and defended capitalism over the centuries, and the system shows no signs that it will move in another direction.

However, while it is clear that the system is both fascinating and successful, it also faces an imminent and growing threat of unequal wealth. Capital in the Twenty-First Century, by Thomas Piketty, takes a deep look at the issues capitalism raises. It describes the foundations of capitalism, showing how an uncontrolled capitalist economy can lead to a great and dangerous chasm between the middle and upper classes. Each statement is supported by extensive data and research, as evidence of past trends as well as actual statistics. Once the problem has been established and exploited, Piketty then proposes a revolutionary solution that if put into practice could change the face of capitalism and economies around the globe.

Capitalism Can Lead To Wealth Inequality

To understand the problem with capitalism, you must first understand how capitalism works. Capitalism, in essence, concerns the production of goods and services with the primary purpose of making money, instead of exchanging it for other goods, food and clothing, as was done in the past. A simple illustration of this is that a farmer cultivating seeds for the sole purpose of selling them on the market for profit. In time, the farmer decides to invest part of his profit in seeds and equipment to produce more. What it reinvests is known as the “capital”, which are essentially the tools or money used to generate more money. When he sells his crop to the market, the money he earns back is called “return”.

A portion of the return will be reinvested as capital again, while a portion will be used to pay those doing the work (in this case, the farmer himself) – and the cycle continues. Over time, the farmer may begin to think about his rate of return, which is the profit he recovers from his investments, expressed as a percentage. When the farmer’s operation begins to become more profitable, he may choose to hire more workers to increase his workforce and thus his productivity. It means that he will have to spend more money on labor, but now his returns must also be much higher. However, if the farmer’s profits begin to grow faster than his operation, his capital will not be needed. As an alternative, the excess of money will go directly into his pocket, and the inequality of wealth begins to develop.

The same principles that apply to the farmer apply to the rest of the economy. If the rate of return continues to grow, but the economy does not grow with it, owners and organizations end up generating a disproportionate amount of wealth to save capital. While it is true that this wealth can often be transferred to capital and used to create new jobs, the result is that, ultimately, a very small percentage of people hold a very large percentage of the wealth of an economy. Also, being the main force behind capital gives owners great power over job creation. When it comes to planning the future of our economy, placing a significant amount of power in the hands of such a small group of people can be considered dangerous.

Understanding Growth Rates As The Key To The Problem

Unless changes are made, power imbalance only worsens over time. A constantly growing global economy is healthy, but the rate at which the world’s markets grow needs to remain similar to the rate at which its capital return increases. We call these rates “growth rate” and “rate of return on capital”, respectively. If the rate of return is off the scale of the rate of growth, there is a financial imbalance, followed by social inequality. That is a problem that needs an immediate solution since even the smallest gap can grow over time to dangerous proportions. It is best viewed by comparing market growth to population growth.

If the world’s population grew at a rate of about 1 percent each year, the number of humans on this planet would grow from just over half a billion in the 1700s to over 7 billion in 2012. Although a rate of 1 % does not look like much at first, it grows exponentially, reaching large numbers over time. The same principle applies directly to capitalism and demonstrates the great problem of the way in which it currently works. If there is a small but steady difference between the rate of return on capital and the rate of growth, the imbalance will lean heavily in favor of the currently wealthy. Although it takes a long time, the results are inevitable. In the end, allowing unequal growth creates a dangerous social imbalance that only worsens over time.

Countries’ National Capital Profile Change Each Century

Simply put, the national capital is the sum of a country’s domestic capital – assets they own in their own land – and their international capital – assets that they own in other countries. Capital has increased and diminished over the decades, but possibly the most notable change has been in its nature. In the past, the land was the most important type of capital, but it gave way to industrial and housing assets. Historically, France and the United Kingdom found great value in international assets, but major global events such as world wars and the Great Depression began to exhaust the value of these assets. By 2010, foreign holdings of these two countries were almost worthless.

Domestic capital can also be divided into public and private assets. These two share an inversely proportional relationship: losses on public assets often mean gains on private assets and vice versa. It means that changes in public and private capital often do not mean changes in domestic capital, but understanding the difference between the two is important. The public assets of a government are always nonfinancial, as in the case of buildings and government structures, or financial, cash in the state. Private assets are simply assets that are not publicly traded. But capital was not the only thing which changed. The way governments deal with their debts has also changed throughout history, but some of the old methods have had unintended effects on the market.

Inflation (where the prices of goods rise) and private lending (where the government borrows from rich private citizens) are both common methods of dealing with public debt, and both present effective solutions. Unfortunately, these methods are quite brutal for the working classes, with the former reducing purchasing power and the latter by giving back power to the already wealthy. Although both methods are declining in Europe, their impacts can already be felt: as markets recover, the unbalanced distribution of wealth is still a real and present factor.

The First Fundamental Law Of Capitalism Helps Us Find National Income And More

To truly understand the complexities of global capitalism, one must understand its history, theory and carefully examine current trends. The first and second fundamental laws of capitalism are formulas that go a long way in explaining market behavior over time and do a great job of simplifying history and making real problems clearer. The first fundamental law of capitalism says that national income (α) is equal to the rate of return on capital (r) multiplied by the rate of capital/income (β). Simply put, the formula looks like this: α = r × β This small formula is powerful, making it incredibly simple to calculate national income, which is the total income received by everyone in a country.

As an example, if you know that the capital/income ratio (the rate that demonstrates how much capital can be received with a year’s income) is 5: 1 with a 4% rate of return on capital, the national income is 20 %. This law is very useful for finding national income, but it is also incredibly versatile and can be used to find its variables as well. For example, if you are looking for the current rate of return and you know the national income and the capital/income ratio, finding your answer is as simple as replacing the numbers in your formula. Because the rate of return is the measure of the amount of return received from investments, it is a very important statistic. The calculation of the rate of return is a simple formula making capitalism’s first fundamental law a powerful tool.

The Second Fundamental Law Of Capitalism Helps Us Understand The Its Monitor

The second fundamental law of capitalism says that the rate of capital/income (β) is equal to the rate of saving (s) divided by the rate of economic growth (g). For example, if an economy saves 20% of its income and has a growth rate of 4%, the capital-income ratio will be 5: 1 or 500% for the value of income of each year. This well illustrates the main problem: if a country saves a lot but does not grow at a rate high enough to keep the economy running, then the result will be an excess of capital, which is then distributed, to those who already have wealth. You can see how important growth is to the economy by simply increasing the growth rate by 1% in the example above.

The capital/income ratio falls to 4: 1, a significant drop. Simply put, this means that if in our example the economy grows only 1% more, the increase would be only 400% instead of 500%. That extra money could be distributed elsewhere, most notably to the middle and lower class families who need it. Capital is a potentially wonderful collection of resources used to create jobs and opportunities for those who do not have capital. But giving the largest share of a country’s economy to a very small percentage of the population is dangerous. These formulas allow us to see how critical the imbalance of wealth can be.

Capitalism Has Sufficient Strength To Support Great Setbacks

We have seen that inequalities can get out of control relatively quickly when not monitored. However, even with catastrophic problems affecting markets on a global scale, capitalism advances over time. In France and the United Kingdom of the nineteenth and twentieth centuries, a working-class, middle-class citizen was rewarded with a good life, food on the table, and money in their pockets. But it also allowed others no realistic chance of getting close to the extravagant wealth of those who inherited fortunes. That was a trend that dominated these centuries. But the world and the economy has changed, and with this, the richest soon found themselves losing more than they expected.

The period between 1914 and 1945 was full of events in the worst possible way. World War I struck hard, shaking the world both economically and politically. Just 11 years later, markets around the world plummeted in the widespread economic recession known as the Great Depression. The event began in 1929, and its effects were postponed until 1939 when combat shook the world again in World War II. These events hit the most prosperous members of society incredibly hard. In 1914, before the start of events, the top 1% of the income hierarchy in France controlled 20% of income. Between 1914 and 1945, that number plummeted to 7%. The top 10% lost control of 45% to 30% of the country’s income, bringing the lifestyle of the highest class very close to the middle class. With so many impacts on the top 10% wealth, one might think that the chasm between the upper and middle classes would be lower, but this is not the case.

Between 1945 and 2010, the top 10% recovered three percentage points, reacquiring 33% of the country’s wealth, and there is still a growing trend. Given the habit of capitalism to grow the percentage wealth at the top exponentially, this inequality is a concern for the future. Capitalism has had some setbacks impeding its efficiency and remains a powerful force that leads to wealth inequality. Research shows that citizens in the top 10% of Europe’s wealthiest countries in 2010 controlled 35% of the continent’s capital and labor. While in the United States, the top 10 percent controlled a huge 60 percent. These numbers serve only to illustrate the dynamics of capitalism: even with a world crisis spanning 31 years and markets breaking in several countries, time is all it takes to recover.

An Unnatural Interference Is Required To Reduce Inequality Significantly

Capitalism’s dynamics are powerful, able to take advantage of small growth rates to put excessive capital in the pocket of the already wealthy. The system as such only aggravates the inequality of wealth over time and shows no signs of improvement on its own. Some schools of economic thought advocate an approach without interference, believing that the economy will naturally regulate itself. However, as we have seen, even the 31 years of the economic crisis were not enough to permanently regulate the problem. What the economy needs is something unnatural. Here ‘unnatural’ simply means something that is directly created to regulate the inequality of wealth, opposing an external occurrence that unintentionally affects it. World wars are prime examples of natural interference, while progressive taxes (which are probably the best solution to regulate inequality) are unnatural interferences.

A ‘progressive tax’ is a tax that increases according to the income of who is taxed. This kind of tax would force the wealthiest and the savers to pay a higher rate than the others. Different forms of progressive tax have been and are being applied around the world. But in the United States and the UK, they are decreasing, reducing their effects and, in some cases, reversing them. For example, in 2010, the poorest 50% in France paid taxes at rates of 40-45% and the next 40% paid slightly higher rates of 45-50%. That sounds ideal until it is revealed that the rates paid by those at the top actually fell, with the top 0.1% paying only 35% and paying virtually no capital wealth tax such as land, factories, and machinery. Progressive taxes are the step in the right direction, but for there to be some permanent and real change, the capital problem needs to be pointed out.

A Global Tax On Capital Would Solve Many Problems

With capital goods commonly free of taxes, something entirely new must be created to counter the problems generated by capitalism. A new and progressive global tax on capital solves these problems by inhibiting the power of capitalism over inequality and allowing for greater balance. Doing so would be a long and severe process, including elaborating a tax plan satisfactory to the whole world, but the efforts involved in creating a tool made specifically to regulate the inequality of wealth would be worth it. To achieve this, a high level of financial transparency would be required, allowing the general banking information of countries and individuals to be monitored. That would include assets held overseas.

In today’s modern society, it would be easier to achieve this, thanks to electronic transfer records. This type of tax would be a perfect tool: in fact, too perfect to be true. It is almost impossible to get all the nations of the world to embark on this idea, as well as finding the perfect planning and support from rich countries. In fact, planning would take a long and impractical time, and the richest members of society would lose so much that they would never agree with this idea. A progressive global capital tax is a utopian concept, but that does not mean that it is not worth considering as a goal. Having an idea of perfection allows economists and governments around the world to see how a world with drastically less inequality would be and then becomes a strong reference for future policies.

Final Notes:

What started as a system that helped managers put their money back into the economy has grown almost overwhelmingly. Now, dreams of riches and fortune are virtually impossible for low and middle-class citizens in many countries around the globe. Wealth inequality is astonishingly high, and something needs to be done. These are not just theories. Careful history studies reveal the power of capitalism dynamics, even in the face of the worst financial catastrophes in history and two of the greatest wars the world has ever seen. The facts shown point to one conclusion: wealth inequality is not a problem that will solve itself. We need policy changes that focus squarely on the main issues to end the chasm and level the playing field again.

When we look at the problems of capitalism, it becomes clear that a progressive tax is the best solution. But in many countries, this type of tax does not affect capital, which is often exempt. Therefore, Thomas Piketty suggests that a progressive tax should be applied directly to capital globally. That would be accompanied by new transparency laws. Although this model is unrealistic, it demonstrates an idea for a perfect economy: an economy in which wealth inequality is minimal and the working classes have a chance to become wealthy through hard work.

Freakonomics: FREE book Summary

Freakonomics cover

Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J. Dubner

Is a gun more dangerous than a swimming pool? How much of an impact do parents really have on a child’s life? Did the legalization of abortion lead to a sharp decrease in crime?

These aren’t typical questions about economics, but then Steven Levitt isn’t your typical economist. Together with award-winning writer and journalist Stephen Dubner, Levitt wrote Freakonomics as a way to explore the hidden side of everything from gangs and real-estate agents to cheating and the Ku Klux Klan.

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The Blind Watchmaker: A Quick Summary of Richard Dawkins’s book

Blind Watchmaker Richard Dawkins cover

The Blind Watchmaker by Richard Dawkins

Richard Dawkins’ The Blind Watchmaker is considered the most influential work on evolution in the last hundred years. Charles Darwin challenged creationists with his theories. Dawkins takes it one step further, making an eloquent and comprehensible argument for the ultimate question: Why do we exist?

“I want to persuade the reader, not just that the Darwinian world-view happens to be true, but that it is the only known theory that could, in principle, solve the mystery of our existence.”

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