A Piketty Update, Addition and a Warning
February 17, 2015 § Leave a comment
I have learned how to reformat quoted material so, if you check out my latest post, you will find that the dangling overhangs littering the quoted passage illustrating Ocemogulu’s gobbledegook have been removed.
After posting that essay I found an article by Dean Baker, a reliable source of common sense economic commentary, about ways to begin correcting the wealth and income inequality disclosed by Pikkety’s data. Here is a link:
He is understandably pessimistic about the likelihood that the tax on capital proposed by Piketty will be implemented any time soon, so he suggests that Piketty’s data should be used to support other, more likely, ways to remedy inequality.
Finally, today’s New York Times has an article citing recent research that reflects that the near finance system collapse of 2008, followed by significant losses related to the near bankruptcy of some Wall Street banks, caused substantial losses of top tier wealth. Those losses, plus the economic stimulus measures initiated by President Obama, caused some narrowing of the wealth and income gap.
The article includes cautionary language that points out two relevant facts concerning this data: First, the wealthy people who had those losses are rapidly recouping. Second: the extent to which these events narrowed the inequality gap was not enough to reverse the longer term trend established by Piketty’s data.
Here is a link to the article: NY Times
My observation is that many people read headlines and never read the headlined articles. So this is an article that practically invites dishonest and devious citations out of context. I therefore urge you to read it, think about it and resist the Phil Gramm/Fox News jackals who will lap it up like cream.