The Chinese version of Capital in the Twenty-First Century (2014) by French economist Thomas Piketty hasn’t been published for good reason. It is inappropriate for Piketty to associate his book with Das Kapital, the 1887 critical analysis of political economy by German philosopher Karl Marx.　　

Difference in political tendency

The political leaning of Capital in the Twenty-First Century can be classified as left-wing. It suggests imposing a progressive tax each year ranging from 0.1 percent to 10 percent on returns on capital, or 80 percent of punitive capital holding tax on the revenue of over $5oo,ooo. This has led US right-wing pundits to label Piketty a Marxist. But Piketty isn’t a Marxist in the conventional sense, which can be seen from his proposition of not scrapping the capitalist system.

Capital in the Twenty-First Century examines the relations between rate of returns on capital and rate of economic growth, explaining the former is higher than the latter with existing materials. This indicates an analytical framework of confrontation between capital gain and labor income, whereby the increased portion must be the reduced portion of workers’ labor income. It is the same as Das Kapital, which is based on confrontation between labor and capital, specifically paid employment. This doesn’t prove Piketty is a Marxist, however, because classical political economics are also based on labor-capital conflicts.

Conflicts between labor and capital are common in classical political economics. Based on these conflicts, Piketty pivots from the stance of contemporary Western mainstream economics to classical political economics. He doesn’t draw such a conclusion from self-contradiction of the capitalist mode of production as Marx did in Das Kapital, which urged the overthrowing of the capitalist system and establishment of capital public ownership.

Piketty once asserted that he has returned to the stance of classical economics due to his dissatisfaction with mainstream economics. However, it is a big leap to go from classical economics to Marxist economics.

Piketty imagines solving the problems caused by capitalist fundamentalism without solving core contradictions, which indicates he hasn’t realized the gap. Commentators accuse him of being a “utopian.” Indeed, Piketty makes the case that the bourgeoisie would rather see the collapse of capitalism than adopt his proposed tax reforms.

Difference in research methods

Capital in the Twenty-First Century shouldn’t be considered a modern Das Kapital. Both books differ in research subjects. More importantly, they have different research methods and both therefore draw inevitably different conclusions. Capital in the Twenty-First Century explains “polarization” with data, strongly refuting theories that distort so-called facts.

No matter how reasonable Piketty’s ideas are, the bourgeoisie will never acknowledge he is right nor accept his proposed policies.

Piketty’s proposed policies have historically been adopted and are even being implemented in some North European countries. However, whether these proposals will be adopted on a greater scale doesn’t depend on whether the ruling classes are clear that the rate of return on capital must conform to economic growth rate. It instead depends on whether their interests can be guaranteed. The capitalist system defines human nature as individualistic and selfish, with the bourgeoisie only caring about their own interests without considering greater mankind.

Without attempting to persuade the bourgeoisie to become reasonable, Das Kapital proposes not having any illusions about them. For this reason, Das Kapital presents an insurmountable critique without comparison.

This isn’t to say that Das Kapital, as a 19th-century book, can explain all phenomena in the 21st century. Marxist theorist Ernest Mandel thought Das Kapital was more suitable for the 20th century. Based on the inherent negativity of capitalism, however, it is in the 21st century that the logic of Das Kapital has been actually realized.

Marx researched virtual capital, but there was no virtual economy in his era. Marx realized the self-denial of capital would inevitably result in socialism, but he didn’t seesocialism whichwould have the same level of productivity under capitalismand even has lower level of productivity than developed countries . If a 21st-century adaptation of Das Kapital is written, its logic should follow Marxist theory.

The author is a teacher at the Shanghai Party Institute First Branch School at the Communist Party of China’s Shanghai Administration Institute.

The Chinese version appeared in Chinese Social Sciences Today, No. 638, August 25, 2014.

Chinsese Link: http://sscp.cssn.cn/xkpd/zm_20150/201408/t20140825_1302270.html

Translated by Yu Hui

Revised by Tom Fearon