Summary Documentary Thomas Piketty Capital in the 21st Century

In 1961, the Berlin Wall was built to keep capitalism and communism apart in Germany. The fall of
the Berlin wall was in 1989 and people living in the communist part of Germany can participate in
capitalism after long desire. After the fall of communism, nationalism increasingly emerges, causing
great inequality and xenophobia.

18th century
In the 18th century, capitalism is already known among the aristocracy, that is a small group that
makes up 1% of the population and controls capitalism. The poor have a hard time in the 18th
century. The average life expectancy is 17 years.
The eldest son inherits all the money, the house and the land. He becomes very powerful. Money
marries money.New political movements arise. The French Revolution 1789-1799 was an influential
political revolution in which the absolute monarchy that had ruled France for about two centuries
was abolished and the First French Republic was established. The French Revolution was based on
hypocrisy. Government of bankers who create the elite.

19th century

Machines take over work that humans did. Companies make more profit. Capital is no longer static.
Spreading business by selling products and making a profit and reinvesting and expanding further.
The old feudal principles last for a long time even after the Industrial Revolution.
The slavery economy contributes to the cycle of capital formation.
It is easier to borrow money, because you could use the slaves as collateral.

In the 19th century a system of division of labour, inequality and power emerged.
From 1870 to 1914, Britain and France had so many colonial possessions and made so much money
through interest, dividends, and leases that they could continue to invest and take ownership of half
the world. Fashion fuels the industrial revolution. Women want new clothes for every season.
The fastest growing industry of the 19th century is the Christmas industry.
Around 1850 there are popping chocolates, Christmas cards and Christmas trees before Christmas
was not widely celebrated.

All kinds of new technology came along; railways, telegraphy, mass production. All these
innovations increase inequality. US soldiers were used to end strikes. Creation of many monopolies.
In 1914, in a city like Paris, 1% of the population owned 70% of all assets. And on the other hand,
two-thirds of the population died without any property. You see an increase in nationalism and
rivalry within Europe. Due to the tensions in society due to the stagnation of living standards and
great inequality. And rivalry between countries, nationalism is often used by the elite to supplant
class strugglethrough international conflict. And all of this contributes to the outbreak of the First
World War in 1914.
World War One 1914-1918
Cultural militarism is a battle between European countries for territory and trade routes.
The British Empire owned a quarter of the world and other countries wanted to share in that wealth.
Especially Germany. Many new capitalists still have a feudal view of the world. Especially in Germany
you have big industrialists who think that war will do the country good.
The battle drags on for years and costs many lives on both sides. The First World War is a struggle for
capital.

20s
After the war, a major economic crisis follows. To get money, they have to tax the aristocracy. From
then on, the aristocracy loses more and more power. And in the 1920s, women get more say, and so
do the workers. The whole idea that workers and women just have to accept their fate is suddenly
changed.

Prices shot up, but people kept buying stocks. People always believe in the magic of Wall Street.
Many banks knowingly sold worthless products. Trade was barely regulated. It was take what you
could get. The bubble of the 1920s started like so many bubbles with pure euphoria. Prices go up,
more money and buy more stocks. Everyone is sitting on a pink cloud.
At the same time, the labor market is completely disrupted. There are many rich, but there are also
many workers and there is little in between. Subsequently, credits were strengthened to bridge that
gap. The bubble burst.

At the same time, the labor market is completely disrupted. There are many rich, but there are also
many workers and there is little in between. Subsequently, credits were strengthened to bridge that
gap. The bubble burst.
Glass-Steagall Act actually made banking healthier. Until it was rolled back in 1999. After the
financial crash, many countries started a trade war. Tariffs were imposed and that exacerbated the
worldwide pain. This led to the crisis of the 1930s.

30s
Banks go bankrupt and people lose their savings. Demand is declining in other sectors, triggering an
avalanche of bankruptcies and unemployment. The crisis becomes a major trauma and the
population and politics point to capitalism as a scapegoat. The suffering in the US became
unbearable. Total poverty. And so there was an increasing enthusiasm for radical political solutions.
Price fixing, a new wage system, all those measures under FDR were unprecedented in America. It
led to better infrastructure and a redistribution of incomes.

The communist alternative scared the capitalists. Roosevelt borrowed some communist ideas. Such
as the big state meddling and strict regulation. It was clear the state needed to create jobs and
redistribute it so people could buy food.The stock market crash affects the US and England but
Germany much more, because Germany was already poor. After WW1 they had to make huge
reparations to other countries. This led to unprecedented inflation in the Weimar Republic, the
Germany of the time. Even with a wheelbarrow full of money you couldn't even buy a loaf of bread.

You can see the rise of fascism at that time in relation to poverty. It is of course enticing when
someone like Adolf Hitler says: I will make Germany great and powerful again. He says: The fact that
we are so poor in Germany is because of Britain, America and the rest of Europe.
The people are having a hard time and are therefore open to fascism and to racism, exclusion and
the invasion of neighboring countries.
The solution to the crisis is the war economy of World War 2. The governments of the countries
involved take over the production. It's an industrial war, so production will determine who wins it.
The workers' movement gained power. If you wanted to produce before the war, you had to
recognize the unions. And to pay for the war, taxes had to be raised. It was the last feudal breath
and the end of the power of the aristocracy in modern countries. The war itself destroys capital.
First, by bombing, which destroys entire cities. But that only represents a third of all destroyed
capital. And the other two thirds? A third is paying off the public debt to citizens who lent the state
money for the war. And the rest comes from new rules such as rent regulation, nationalizations and
banking rules.

The balance of power within society is changing. Wars, with all their death and despair, are also
moments when we rediscover humanity in each other. The new political context is finally leading to
the realization of the enlightenment and equality proclaimed in the 18th century. The social
landscape will look completely different after the war. Unprecedented large shifts are taking place.
Social security is coming. With a sickness benefit, holiday pay and a health insurance fund.
Companies are nationalized, inheritances and wealth are taxed. Television, a unique product of
private and public cooperation.

50s
In the 1950s, capital is curbed with rent and land ownership rules. The idea is that capital should
help people. Previously, the rich were allowed to know what to do with their capital, but there is
now resistance to this. The 50s should be a time when everyone can be rich. For the first time, you
can reach the top with hard work and study. Mrs Thatcher you see great social mobility and she
became prime minister and rich. This is due to this new society, with social mobility..