Plutonomy

Plutonomy from πλοῦτος, ploutos 'wealth', and portmanteau of "plutocracy" as well as "economy" is a science of production in addition to distribution of wealth.

Plutonomy in addition to the discussion about inequality

Eight years after Kapur and his team developed and published their plutonomy thesis, the French economist Thomas Piketty achieved worldwide prominence with his book Capital in the Twenty-First Century. In this book, he shows a strong long-term trend toward more concentrated income and wealth. Some economists took effect with this diagnosis. During this discussion, Ajay Kapur the author of the plutonomy-theses, which is closely related to Piketty's theses, entered the public stage again in May 2014. In a paper, which he wrote for customers of his new employer, Bank of America Merrill Lynch, one of the largest wealth administration firms, Kapur and his team defended Piketty against critics.

In their analyse "Piketty and Plutonomy: The Revenge of Inequality" they state that in the long term the drivers of the further concentration of wealth are intact, including globalization and capitalism-friendly governments. However, they warn that in the short-term there is potential for a backlash. One reason is that the US central bank Federal Reserve is reducing their asset purchases. According to Kapur and team, "the balance sheets of the plutonomists do been an important transmission channel of monetary policy."

They further see the luxury industry catering to plutonomists threatened by anti-corruption initiatives of China and India. Firms like Rémy Cointreau are already suffering from this, they write.