With profits rising, productivity growth slowing, investment middling despite near-zero interest rates, and large competitors gaining market share, proponents of income redistribution insist that an increase in monopoly rents — profits earned by cooperating with competitors to raise prices and restrict output rather than competing honestly with them — has misallocated resources, increased income inequality, and slowed middle- and working-class wage growth. If cronyism increasingly misallocates resources, theoretically policymakers can redistribute income without significantly slowing growth and diminishing prosperity — the proverbial free lunch. Politicians such as Elizabeth Warren insist that, without slowing growth and gradually reducing middle-class prosperity, America can tax the rewards of success and redistribute income that would otherwise be invested. Unbiased economists must scrutinize such claims. Unfortunately, in his newly published book, The Great Reversal, Thomas Philippon offers one-sided support for them. Read more here.
Tyler Cowen promoted my review in his Marginal Revolution blog.
The Boston Globe noted my review in its review of the book.
Revue Concurrentialiste’s Thibault Schrepel promoted my review as one of his best November reads.