Thomas Piketty, a renowned economist, is best known for his work on inequality, particularly in his book Capital in the Twenty-First Century. While he doesn’t have a singular, easily summarized stance on national debt, his views can be inferred from his broader ideas on economic policy, wealth inequality, and fiscal management.

Here are some key points about Piketty’s views on national debt:

1. National Debt and Inequality

Piketty has emphasized that national debt, when managed properly, does not have to be a detrimental force, particularly in comparison to wealth inequality. In fact, he argues that the accumulation of wealth among the richest, especially through inheritances, can be a bigger challenge for society. National debt, in his view, should not be demonized if used in a way that supports productive investments and reduces inequality.

2. Public Investment and Debt

Piketty believes that governments should leverage national debt for long-term investments in public goods, such as education, infrastructure, and green energy. The idea is that these investments will pay off in the future, thereby benefiting the economy and society, justifying the debt incurred to finance them. He sees national debt as a tool that can be used to reduce economic disparities, rather than something to be eliminated at all costs.

3. Interest Rates and Debt

In his analyses, Piketty points out that the low-interest-rate environment in many advanced economies (since the 2008 financial crisis, for example) makes it possible for governments to borrow at a relatively low cost. He suggests that in such environments, the focus should be on using debt effectively rather than worrying excessively about its size. If the government borrows at low interest rates to fund productive investments, it can lead to economic growth that outpaces the growth of debt.

4. Wealth Taxes Over Austerity

Piketty is critical of austerity measures, which often involve cutting public spending to reduce national debt. He argues that austerity policies tend to exacerbate inequality and slow down economic growth. Instead, he advocates for wealth taxes and progressive taxation to address inequality and finance government spending, including the management of national debt. Piketty sees wealth taxes as a way to create a more equitable society while allowing for responsible borrowing.

5. Debt and Globalization

Piketty has also noted that global inequality and the concentration of wealth in a few hands, particularly among the wealthiest individuals and corporations, can exacerbate problems related to national debt. He suggests that a global tax on wealth could help address these issues and mitigate the challenges posed by national debts, which often have to be managed within a context of uneven global capital flows.

6. Debt as a Tool of the Wealthy

Piketty warns that the wealthy have the means to benefit from national debt in a way that exacerbates inequality. For example, the rich often own large amounts of government bonds, which means they benefit from government borrowing in ways that the general public doesn’t. This, in turn, contributes to the rising wealth gap. To combat this, he proposes that the government should make sure that fiscal policies are more redistributive and that wealth is taxed appropriately.

Conclusion

In essence, Piketty does not view national debt as inherently harmful, especially in an environment where borrowing costs are low and investments are productive. His broader focus is on ensuring that debt is used to reduce inequality, support long-term economic growth, and finance public goods. At the same time, he is critical of policies that prioritize debt reduction at the expense of social investment or inequality mitigation.