Tyler Cowen — More Matt Rognlie on Piketty — the most important point Tyler Cowen

To be perfectly frank on this one, Matt [Rognlie] here is completely correct and Piketty has not produced any effective response to this point, either within the book or without. The internal response “I still think we need to worry about inequality therefore I side with Piketty” simply represents a misunderstanding of Matt’s argument. Piketty’s mechanism of accumulation, as laid out in his book, is simply the wrong mechanism for understanding growing inequality, both theoretically and empirically. And it is a shame that the Giles critique from the FT has attracted so much attention because it has distracted everyone from the more serious problems with the argument of the book.

Marginal Revolution
More Matt Rognlie on Piketty — the most important point
Tyler Cowen