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No Evidence for Piketty's Theory

bballcrook21
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8/5/2016 7:55:49 PM
Posted: 4 months ago
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
Greyparrot
Posts: 14,268
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8/5/2016 9:22:37 PM
Posted: 4 months ago
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The establishment is why we have inequality, not "rich people"
bballcrook21
Posts: 4,468
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8/5/2016 11:30:39 PM
Posted: 4 months ago
At 8/5/2016 10:08:46 PM, YYW wrote:
That was a weak, poorly written op-ed.

That's because it was a summary of this paper from the IMF.

http://www.imf.org...
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
dylancatlow
Posts: 12,245
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8/5/2016 11:55:01 PM
Posted: 4 months ago
In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Whether or not rate of return on capital goes up or down one year is not particularity important. What's important is where it is in relation to the overall growth rate; if it's significantly higher, then those with money to invest will accumulate money faster than the economy grows, thereby taking on a greater share of national wealth. If capital returns are below the overall growth rate then inequality will not worsen merely because the rate of return happens to outpace economic output. Of course, if that trend continued forever then eventually rate of return on capital would surpass economic growth, and you'd expect to find inequality on the rise, at least if Piketty's analysis is correct.
bballcrook21
Posts: 4,468
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8/6/2016 12:09:37 AM
Posted: 4 months ago
At 8/5/2016 10:08:46 PM, YYW wrote:
That was a weak, poorly written op-ed.

Were you in the hangouts when I was roasting people in a different chat? I forgot to turn my mic off lol
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
brontoraptor
Posts: 11,685
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8/6/2016 6:09:40 PM
Posted: 4 months ago
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
desmac
Posts: 5,078
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8/6/2016 6:28:48 PM
Posted: 4 months ago
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.
brontoraptor
Posts: 11,685
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8/6/2016 7:09:24 PM
Posted: 4 months ago
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
desmac
Posts: 5,078
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8/6/2016 7:14:43 PM
Posted: 4 months ago
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?
brontoraptor
Posts: 11,685
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8/6/2016 7:16:05 PM
Posted: 4 months ago
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
brontoraptor
Posts: 11,685
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8/6/2016 7:16:05 PM
Posted: 4 months ago
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
desmac
Posts: 5,078
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8/6/2016 7:17:21 PM
Posted: 4 months ago
At 8/6/2016 7:16:05 PM, brontoraptor wrote:
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.

I have never voted Democrat in my life.
brontoraptor
Posts: 11,685
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8/6/2016 7:17:29 PM
Posted: 4 months ago
At 8/6/2016 7:16:05 PM, brontoraptor wrote:
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.

They support emotional enslavement of minorities and you have your mouth on their allegorical c0ck.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
brontoraptor
Posts: 11,685
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8/6/2016 7:19:28 PM
Posted: 4 months ago
At 8/6/2016 7:17:21 PM, desmac wrote:
At 8/6/2016 7:16:05 PM, brontoraptor wrote:
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.

I have never voted Democrat in my life.

Then this should be the easiest vote you ever cast.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
desmac
Posts: 5,078
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8/6/2016 7:21:50 PM
Posted: 4 months ago
At 8/6/2016 7:19:28 PM, brontoraptor wrote:
At 8/6/2016 7:17:21 PM, desmac wrote:
At 8/6/2016 7:16:05 PM, brontoraptor wrote:
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.

I have never voted Democrat in my life.

Then this should be the easiest vote you ever cast.

How could anybody vote for that lunatic Trump?
BrendanD19
Posts: 2,047
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8/6/2016 7:37:33 PM
Posted: 4 months ago
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

shouldn't this be in the economics section, not the politics section?
bballcrook21
Posts: 4,468
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8/6/2016 7:53:57 PM
Posted: 4 months ago
At 8/6/2016 7:37:33 PM, BrendanD19 wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

shouldn't this be in the economics section, not the politics section?

No one bothers to visit that section.
If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand. - Friedman

Underlying most arguments against the free market is a lack of belief in freedom itself. -Friedman

Nothing is so permanent as a temporary government program. - Friedman

Society will never be free until the last Democrat is strangled with the entrails of the last Communist.
BrendanD19
Posts: 2,047
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8/6/2016 8:05:05 PM
Posted: 4 months ago
At 8/6/2016 7:53:57 PM, bballcrook21 wrote:
At 8/6/2016 7:37:33 PM, BrendanD19 wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

shouldn't this be in the economics section, not the politics section?

No one bothers to visit that section.

Fair enough
brontoraptor
Posts: 11,685
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8/6/2016 8:23:57 PM
Posted: 4 months ago
At 8/6/2016 7:21:50 PM, desmac wrote:
At 8/6/2016 7:19:28 PM, brontoraptor wrote:
At 8/6/2016 7:17:21 PM, desmac wrote:
At 8/6/2016 7:16:05 PM, brontoraptor wrote:
At 8/6/2016 7:14:43 PM, desmac wrote:
At 8/6/2016 7:09:24 PM, brontoraptor wrote:
At 8/6/2016 6:28:48 PM, desmac wrote:
At 8/6/2016 6:09:40 PM, brontoraptor wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

The democrats had it planned this way before slavery even ended. Plantation polotics. Dems are the biggest racists that ever walked thefuckin* planet.

So you should be happy voting for them, crappy.

Well see, I'm a Republican, so I see all minorities as equals who don't need a pat on a head to simply be given a swat on the butt back into the cotton fields. You want them below you because it makes you feel good to know there's someone to lookdown onand make false promises to because of your sociopathic nature.

Everyone who votes Democrat is a sociopath?

Just you, Bill, and Hillary.

I have never voted Democrat in my life.

Then this should be the easiest vote you ever cast.

How could anybody vote for that lunatic Trump?

Hillary has actually killed people. He's guty of what? Hurting your feelings? Liberals live in a fairytale world where they want peopleto spare their girly little feelings rather than face reality.
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
brontoraptor
Posts: 11,685
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8/6/2016 8:30:58 PM
Posted: 4 months ago
At 8/6/2016 7:37:33 PM, BrendanD19 wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

shouldn't this be in the economics section, not the politics section?

It'll be whatever sectionI say. You should tolerate anything I say. I'm a minority, so you have to tolerate me at all costs as a liberal with no fuc*ing common sense right?
"What Donald Trump is doing is representing the absolute heartbreak, and anger, and frustration at a government gone mad."

http://youtu.be...
BrendanD19
Posts: 2,047
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8/6/2016 9:25:47 PM
Posted: 4 months ago
At 8/6/2016 8:30:58 PM, brontoraptor wrote:
At 8/6/2016 7:37:33 PM, BrendanD19 wrote:
At 8/5/2016 7:55:49 PM, bballcrook21 wrote:
I made a post about this a couple of weeks ago, and now this has turned up on the Wall Street Journal.

http://blogs.wsj.com...

Thomas Piketty"s case for rising inequality took another hit this week.

Mr. Piketty hypothesized that income inequality has risen because returns on capital"such as profits, interest and rent that are more gleanings of the rich than the poor"outpaced economic growth.

The evidence modern capitalism foments inequality, the former adviser to French Socialist Party candidate S"gol"ne Royal argued, was in capital"s rising share of income at the expense of labor"s contribution over the last four decades.

But Mr. Piketty"s thesis, posed by the French economist in his controversial 2013 tome "Capital in the Twenty-First Century," isn"t proved by historical data, says International Monetary Fund economist Carlos G"es.

"There is little more than some apparent correlations the reader can eyeball in charts," Mr. G"es says in a new paper published by the IMF. "While rich in data, the book provides no formal empirical testing for its theoretical causal chain."

Mr. G"es tested the thesis against three decades of data from 19 advanced economies. "I find no empirical evidence that dynamics move in the way Piketty suggests."

In fact, for three-quarters of the countries he studied, inequality actually fell when capital returns accelerated faster than output.

Those findings support previous work by Daron Acemoglu of the Massachusetts Institute of Technology and political scientist James Robinson, now of the University of Chicago, suggesting Mr. Piketty"s thesis was far too simplistic for the complexities of real-world economies that are affected by politics and technology.

Mr. G"es says his study also provides evidence that Mr. Piketty"s assumption that saving rates remain stable is flawed. Rather, the data shows changes in the savings rate are likely to offset most of the effects of an increase in capital share of national income.

Why does all this matter?

Because if policy makers seeking to address inequalities misunderstand the problem, their solutions could be wrong, ineffective and costly. Based on his inequality theory, Mr. Piketty has proposed progressive wealth taxes, a measure some economists argue could harm economic growth.

Mr. G"es says his study suggests, however, "one needs to look for the causes of inequality (and potential solutions) elsewhere."

shouldn't this be in the economics section, not the politics section?

It'll be whatever sectionI say. You should tolerate anything I say. I'm a minority, so you have to tolerate me at all costs as a liberal with no fuc*ing common sense right?

1) I'm not a liberal
2) Don't you have to stop goats from crossing your bridge?