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His observation is that inequality is raising in most western countries. (It does not increase globally.) His conclusion is that we should tax the rich more - w

by Hermel 9y ago

His observation is that inequality is raising in most western countries. (It does not increase globally.) His conclusion is that we should tax the rich more - which is not very original and many disagree with. Also, Piketty misses some of the root causes of inequality. He blames capitalism, when in fact the main driver is increasing age. The older people get, the more their income and wealth differs. As society ages, inequality increases. Furthermore, many western countries are importing inequality through immigration. When lots of poor enter a rich country, the inequality in that country goes up. Furthermore, divorces and being a single parent is a huge poverty risk in many western countries. To a certain extent, inequality is the price of liberally allowing divorces and children outside marriage. So it is not that economists deny Piketty's observations, but they find his recipes to counter inequality overly simplistic.

Mikeb85 9y ago
Piketty adresses concentration of wealth due to aging, inheritance, etc..., and is a proponent of estate and wealth taxes. And the solutions are simple, just uncomfortable for those who aren't poor.
- dantheman 9y ago
  "For every complex problem there is an answer that is clear, simple, and wrong" - Mencken
  - contras1970 9y ago
    In the present case it is: "maintain the course".
contras1970 9y ago
> in fact the main driver is increasing age. The older people get, the more their income and wealth differs. You make it sound as if Zuckerberg was a Lovecraftian Great Old One. Wait a minute..!
plorg 9y ago
Wealth increasing due to age is exactly the result of a system where accumulated capital is a tax-preffered method of wealth generation. Capitalism as practiced advantages anyone who has more wealth than another, and unchecked leads exactly to the kind of wealth inequality we see in the world right now.
PhasmaFelis 9y ago
> He blames capitalism, when in fact the main driver is increasing age. Source? This sounds like a pet theory rather than anything substantiated, especially since there's plenty of evidence of inequality among younger people. (Or were you saying that people get richer as they get older? It's not clear.) > To a certain extent, inequality is the price of liberally allowing divorces and children outside marriage. Are you actually saying that, to fight inequality, we need to stigmatize divorce and extramarital sex more? Or are you just saying that inequality is an unavoidable consequence of allowing divorce, and there's no point trying to fix that?
- Hermel 9y ago
  > Source? Yes, it is a pet theory, but a substantiated one. We've looked into Piketty's ideas during a semester project when I did a master's in economics. Among other things, we found that Piketty's measure for inequality (the percentage of wealth that is held by the top 10%) correlates very well with median age in the US. (T-stat: 7.2, R-squared: 0.90). Yes, correlation does not imply causation, but it is a strong hint that there is a connection.
  - RikNieu 9y ago
    This may be a really dumb question(it's late and I'm writing this in bed)but wouldn't retirement savings and investments explain the age related bias? If so, do you propose getting rid of retirement planning?
  - deleted 9y ago
    [deleted]
  - PhasmaFelis 9y ago
    I'm sure that age does exacerbate fiscal inequality, as the rich gather savings and the poor lose the ability to work. I'm not sure how you get from there to "capitalism isn't a substantial factor in inequality." It seems like you're cherrypicking the causes that we can't reasonably change, so as to justify ignoring the problem.
    - 9y ago
lumberjack 9y ago
>when in fact the main driver is increasing age Sorry but I have to laugh at your absurd level of arrogance.
- dang 9y ago
  Personal swipes are not welcome here, and we ban accounts that comment like this. Please (re)-read the site guidelines and follow them. That means posting civilly and substantively, or not at all. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newswelcome.html https://news.ycombinator.com/newswelcome.html

by Hermel 9y ago

Mikeb85 9y ago

Piketty adresses concentration of wealth due to aging, inheritance, etc..., and is a proponent of estate and wealth taxes. And the solutions are simple, just uncomfortable for those who aren't poor.

dantheman 9y ago
"For every complex problem there is an answer that is clear, simple, and wrong" - Mencken
- contras1970 9y ago
  In the present case it is: "maintain the course".

contras1970 9y ago

> in fact the main driver is increasing age. The older people get, the more their income and wealth differs. You make it sound as if Zuckerberg was a Lovecraftian Great Old One. Wait a minute..!

plorg 9y ago

Wealth increasing due to age is exactly the result of a system where accumulated capital is a tax-preffered method of wealth generation. Capitalism as practiced advantages anyone who has more wealth than another, and unchecked leads exactly to the kind of wealth inequality we see in the world right now.

PhasmaFelis 9y ago

> He blames capitalism, when in fact the main driver is increasing age. Source? This sounds like a pet theory rather than anything substantiated, especially since there's plenty of evidence of inequality among younger people. (Or were you saying that people get richer as they get older? It's not clear.) > To a certain extent, inequality is the price of liberally allowing divorces and children outside marriage. Are you actually saying that, to fight inequality, we need to stigmatize divorce and extramarital sex more? Or are you just saying that inequality is an unavoidable consequence of allowing divorce, and there's no point trying to fix that?

Hermel 9y ago
> Source? Yes, it is a pet theory, but a substantiated one. We've looked into Piketty's ideas during a semester project when I did a master's in economics. Among other things, we found that Piketty's measure for inequality (the percentage of wealth that is held by the top 10%) correlates very well with median age in the US. (T-stat: 7.2, R-squared: 0.90). Yes, correlation does not imply causation, but it is a strong hint that there is a connection.
- RikNieu 9y ago
  This may be a really dumb question(it's late and I'm writing this in bed)but wouldn't retirement savings and investments explain the age related bias? If so, do you propose getting rid of retirement planning?
- deleted 9y ago
  [deleted]
- PhasmaFelis 9y ago
  I'm sure that age does exacerbate fiscal inequality, as the rich gather savings and the poor lose the ability to work. I'm not sure how you get from there to "capitalism isn't a substantial factor in inequality." It seems like you're cherrypicking the causes that we can't reasonably change, so as to justify ignoring the problem.
  - 9y ago

lumberjack 9y ago

>when in fact the main driver is increasing age Sorry but I have to laugh at your absurd level of arrogance.

dang 9y ago
Personal swipes are not welcome here, and we ban accounts that comment like this. Please (re)-read the site guidelines and follow them. That means posting civilly and substantively, or not at all. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newswelcome.html https://news.ycombinator.com/newswelcome.html