Income inequality has surged as a political and economic issue, but the numbers don’t show that inequality is rising from a global perspective. Yes, the problem has become more acute within most individual nations, yet income inequality for the world as a whole has been falling for most of the last 20 years. It’s a fact that …
Hypocrisy, Thy Name is Gene Nichol
I was of the understanding that being paid a boatload of money while doing very little work is wrong. That it contributes to income inequality. That it's cronyism run amok. That we are all supposed to be concerned and upset when lavish sums of money are given to the undeserving. Apparently, I was wrong: A …
Inherited Wealth and Societal Benefits
Contrary to popular belief, inherited wealth can be very good for the economy as a whole, as Greg Mankiw points out: From a policy perspective, we need to consider not only the direct effects on the family but also the indirect effects on the broader economy. Rising income inequality over the past several decades has …
Still More on the Piketty Wars
Responding to Piketty's response (linked here) to the charges raised by the Financial Times, Chris Giles notes that there remain concerns with Piketty's presentation: There are a few things on which we agree. First, the source data on wealth inequality is poor. I have written that it is “sketchy” and Prof Piketty says it is “much …
The Piketty Wars Continue
Piketty has now come out with a substantive response to the criticisms in the Financial Times found by Giles and Giugliano. I am glad that he has done so, and I suspect that there is much to chew over in the response, so I will look forward to reading the response of others to Piketty's defense. …
Understanding Paul Krugman on Thomas Piketty
Gentle readers, whenever Paul Krugman issues a defense of Thomas Piketty regarding the charges against the latter, by all means, be sure to read that defense. Be sure to consider its merits seriously. Be sure to closely and carefully examine the data Krugman might present in defense of his point and if Krugman actually makes a …
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The Tragedy of Thomas Piketty
The latest Pikettian response to Giles's and Giugliano's assertions regarding the quality of Piketty's data and research is to accuse Giles and Giugliano of being "dishonest." (Hat tip in comments here.) I suppose this means that Piketty's is employing a classic I-am-rubber-and-you-are-glue-whatever-you-say-bounces-off-me-and-sticks-back-to-you defense, but there is little substance to the accusation; at best, Piketty can assert (without …
What the Piketty Errors Mean
Remember the Reinhart/Rogoff spreadsheet error? In the event that you do not, here is a summary. Those who follow debates between economists will recall that the spreadsheet error led to all kinds of excorations of Reinhart and Rogoff on the part of liberal economists, who claimed that Reinhart and Rogoff were responsible for austerity policies …
Facts Are Stubborn Things . . . As Thomas Piketty Is Beginning to Find Out
I have bought Thomas Piketty's book Capital in the Twenty-First Century, and while I have posted many an item that takes issue with the books claims and conclusions concerning wealth inequality, I do plan on reading Piketty; his book has made quite the intellectual and cultural impact, and although I know what his basic arguments are, …
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Some More Piketty Critiques
Let's run through them: Kyle Smith has six ways in which Piketty's book fails the smell test. Many of the links have been already linked to by me, but it is nice and useful to have them in one convenient place. Don Boudreaux notes that Piketty doesn't seem to understand the impact of trade deficits. This has …
