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i think a lot of people miss the joke about why piketty is so popular. it's not the theorizing about the cause of inequality, which seems fairly obvious if you

by lmg643 12y ago

i think a lot of people miss the joke about why piketty is so popular. it's not the theorizing about the cause of inequality, which seems fairly obvious if you read financial news and blogs. the "novel" piece - at least in polite conversation - is that his solution to the problem is a wealth tax, which goes after assets instead of income. (i say polite conversation, since wealth taxes normally apply in cases where there is a sovereign liquidity crisis, which is not a polite situation.) so, we think the wealth tax this sounds like a great idea, let's go after the billions that accrued in offshore hedge funds for US citizens and take 30%, sounds fair since it avoided taxes in the first place. of course, when it comes time to implement the tax, that money is gone, perhaps to some other jurisdiction, and they settle for enforcement by having the average joe write a check based on money in your bank or brokerage account, whatever meager amount over $100k you may have. and, probably convert 401ks into a myRA account, which gives the government a new forced buyer of treasury securities, while pretending it was for some other reason.

chrisgd 12y ago
I disagree. I think the popularity is stemming from this quote "But his real beef is with the mainstream economic teachings that more capital and lower taxes on capital bring faster growth and higher wages, and that economic dynamism will automatically keep inequality at bay." He is basically using mainstream economics techniques to prove that mainstream economic ideas, especially those centered around free-trade and low taxes to chase growth maximize inequality, they don't minimize them. Everyone who has had problems with the teaching of mainstream economics as a means to lessen inequality now have more evidence.
- zo1 12y ago
  "Everyone who has had problems with the teaching of mainstream economics as a means to lessen inequality now have more evidence." So when I read most of the articles regarding this book, all I can picture is a slew of angry mob-like people shouting: Those pesky economists must be wrong! This guy is saying stuff we all like to hear, therefore he is correct! Indeed, the public is fickle, and will naturally gravitate to what feels good and re-affirms what they feel is true. There has been a growing mistrust of intellectuals of late, and it's because people are dissatisfied. Intellectuals have been losing the media war with the government.

by lmg643 12y ago

chrisgd 12y ago

I disagree. I think the popularity is stemming from this quote "But his real beef is with the mainstream economic teachings that more capital and lower taxes on capital bring faster growth and higher wages, and that economic dynamism will automatically keep inequality at bay." He is basically using mainstream economics techniques to prove that mainstream economic ideas, especially those centered around free-trade and low taxes to chase growth maximize inequality, they don't minimize them. Everyone who has had problems with the teaching of mainstream economics as a means to lessen inequality now have more evidence.

zo1 12y ago
"Everyone who has had problems with the teaching of mainstream economics as a means to lessen inequality now have more evidence." So when I read most of the articles regarding this book, all I can picture is a slew of angry mob-like people shouting: Those pesky economists must be wrong! This guy is saying stuff we all like to hear, therefore he is correct! Indeed, the public is fickle, and will naturally gravitate to what feels good and re-affirms what they feel is true. There has been a growing mistrust of intellectuals of late, and it's because people are dissatisfied. Intellectuals have been losing the media war with the government.