Pikkety on Capital in the 21st Century (Tom Palley)
I have just finished Piketty’s magnum opus which is clearly one of the most important economic books of our time. I am still trying to digest the theoretical argument.
Below I provide a link and intro to an important commentary by Tom Palley who argues that Pikkety is too close to the neo classical paradigm re rewards to capital.
This may be a bit exaggerated, but Pikkety does relatively neglect the role of economic and political power in determining the rate of profit and capital’s share of national income. To my mind he also systematically confuses wealth and capital, and has remarkably little to say on the role of financial capital.
The accidental controversialist: deeper reflections on Thomas Pikettyâ€™s â€œCapitalâ€
Thomas Pikettyâ€™s Capital in the Twenty-First Century is a six hundred and eighty-five page tome that definitively characterizes the empirical pattern of income and wealth inequality in capitalist economies over the past two hundred and fifty years, and especially over the last one hundred. It also documents the grotesque rise of inequality over the past forty years and ends with a call for restoration of high marginal income tax rates and a global wealth tax.
His book has tapped a nerve and become a phenomenon. In laying a solid blow against inequality, Piketty has also become an accidental controversialist. That is because his book has potential to unintentionally trigger debate over so-called â€œfree marketâ€ capitalism. The big question is will that happen? [READ MORE HERE