I just haven't complained about Papola for a while, that's all.
Do people really walk away from that movie thinking it's a criticism of capitalism and technology?
27 minutes ago
"Piketty doesn't say that r > g has been a big driver of income inequality in recent years. He says only that he thinks it will be a big driver in the future.
This is good clean fun as a gotcha. But liberals should understand that it also exposes one of the biggest weaknesses of Piketty's argument: r > g has been true for centuries, but the rich have not gotten steadily richer over that time. Wealth concentration has stayed roughly the same."It's nice that it's dawning on more and more people that the IGM survey is not that consequential for Piketty, and it's nice that Drum is spreading that point. But I think he's adding to the confusion by perpetuating this idea that if r > g it means that inequality grows without bound. This narrative is part of what's driving peoples' incredulity about an inequality which (as Debraj Ray has pointed out very clearly) is a standard result that pops out of standard growth models and doesn't have any of the dire inequality death-spiral implications people impute to it.
"Let me step out of character for a moment and compliment you [I don't think that's all that out of character - DK]: You are a "deep" kind of guy who likes to think about what he's doing. You spend a lot of time at my blog keeping tabs on how those wacky Austro-libertarians look at the world, you read Sumner to see what mischief he's raising today, you read Boettke and Boudreaux to see how they are straw-manning people this morning... You get the point (and I'm trying to be funny), you spend a lot of time thinking through stuff. Most people--including economists--don't do that.He is referring to a point I made about how in a micro class I was teaching the week prior to the Kirzner lecture I asked them why they thought agents would grope toward equilibrium, what the incentives were for doing so, etc. - and that they gave (somewhat unsophisticated of course) market process answers.
So where am I going with this? The fact that you asked your micro class to think about finding equilibrium doesn't mean too much. It would be like me saying, "People say Austrians don't use math, but I taught a game theory class at Hillsdale." You are not a proxy for "the mainstream" since you keep abreast of a lot of approaches and like to think through what you're doing. You sort of gave away the game when you said, "But when we moved to Slutsky equation I lost them..." (or whatever). That's just what the Austrians say: They are doing intuitive, real-world economics, while mainstream does formal math models that are confusing and pointless.
Daniel Kuehn is a doctoral candidate and adjunct professor in the Economics Department at American University. He has a master's degree in public policy from George Washington University.