Larry Summers’ review of Thomas Piketty’s book has finally arrived, and he savages it. Frankly, it’s hard to find any aspect of Piketty’s theory that escapes Summers’ disdain. Here are excerpts from Summers’ review: “I have serious reservations about Piketty’s theorizing as a guide to understanding the evolution of American inequality.” “Piketty argues that as long as the return to wealth exceeds an economy’s growth rate, wealth-to-income ratios will tend to rise, ... Read More
New evidence eviscerates relevancy of Piketty’s claim capital has grown at expense of labor
Until Piketty responds effectively to the just-released paper, “Does Housing Capital Contribute to Inequality? ... Read More
Piketty and Krugman Admit the Laffer Curve Is Real
Real Clear Politics By Edward Conard | April 23, 2014 Liberal and conservative economists disagree sharply over the extent to which a lower marginal tax rate motivates talented workers to take the risks and suffer the consequences necessary to earn more money. The strongly held belief that higher tax rates do not create significant disincentive for risk-taking is central to the liberal argument. Imagine the shock, then, when two pillars of liberal economics-Paul ... Read More
