>Be Piketty
>Be the left's last hope
>Come up with the thesis r>g (rate of return on capital is higher than the rate of economic growth,) a massive step towards empirical evidence for tackling wealth inequality
>Leftists adore him for said reason
>Turns out his thesis was not only wrong, but the exact opposite effect was found in 75% of countries studied
How JUST'd can you get?
Be Piketty
Isaac James
Other urls found in this thread:
cnbc.com
bostonreview.net
forbes.com
twitter.com
Mason Cox
sauce?
Ryder Collins
Every single time you find a book written on a subject that has popular support, you can almost be certain that academics of that subject hate it.
The examples are too numerous to count.
Christian Lewis
So in which countries was it not correct? That r>g for the developed world is definetely correct. Or in other words, working wages are stagnating while capital returns aren't. This might not be true for China or Brazil, but it definetely is for America and Europe.
Cooper Wright
>The International Monetary Fund (IMF) researched the basic thesis put forth by the book -that when the rate of return on capital (r) is greater than the rate of economic growth (g) over the long term, the result is concentration of wealth - and found no empirical support for it. IMF economist Carlos Góes found that in fact, an opposite trend was identified in 75% of the countries studied in depth.
The paper's thesis
>"Thomas Piketty's Capital in the Twenty-First Century puts forth a logically consistent explanation for changes in income and wealth inequality patterns. However, while rich in data, the book provides no formal empirical testing for its theoretical causal chain. In this paper, I build a set of Panel SVAR models to check if inequality and capital share in the national income move up as the r-g gap grows. Using a sample of 19 advanced economies spanning over 30 years, I find no empirical evidence that dynamics move in the way Piketty suggests. Results are robust to several alternative estimates of r-g."
cnbc.com
Link to the pdf of the paper in the article
Jaxon Ross
>"Sample for Model 1: Australia, Canada, Finland, France, Germany, Italy, Ireland, Japan, Korea, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and United States."
>"Sample for Models 2 and 3: Australia, Canada, Denmark, Finland, France, Italy, Japan, Korea, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and United States."
You were saying
Xavier Thompson
It was also disproven by a bored economics student. The trends he spotted are due to middle class boomers pouring money into property, as opposed to the big business fat capitalist in a top hat stereotype.
The irony is the super rich are getting rich because their capital depreciates so rapidly. They invest in new technology or build a factory in China then immediately sell it for its value as a long term investment. The middle class aren't competing with them then get hit by the housing bubble and things.
Zachary Parker
which is which?
Jayden Evans
thanks senpai
Joshua Smith
>but it definetely is for America and Europe.
Except it isn't.
Idiot.
Wyatt Lee
Capital is a really good book tho and many of his policy ideas are still just as good regardless of whether his r>g shit is wrong.
Robert Brown
What do you mean? He runs three models in his paper
Blake Reyes
>His policies ideas are good despite having literally zero evidence based reason to have them
oookay
Dominic Wood
>It was also disproven by a bored economics student. The trends he spotted are due to middle class boomers pouring money into property, as opposed to the big business fat capitalist in a top hat stereotype.
there's a reason why that chart stops at 2010.
bostonreview.net
Jason Cox
>Despite Piketty’s resonance with the public, his book was mostly greeted with hostility by professional economists.
BECAUSE IT MADE OUTLANDISH STATEMENTS AND WAS A LOAD OF SHIT
WAHHHH WE NEED MORE LEFTIST VIEWS IN ACADEMIA, TAKE US SERIOUSLY GUIS >:(
Jackson Martinez
Eli Nelson
>Hillary
>Leftist
Most economists are full blown SJW's, *but* are also at least fiscally moderate
Take that Nobel prize winner a while back, something Sargeant. His worked showed the severe issues with the welfare state, but he was also a registered democrat. Figure that out
Levi Allen
How do people still not realize that economics is a pseudoscience? Everyone from about Smith onward has been proven completely wrong again and again, and even Smith had some major flaws in his analysis.
Jacob Stewart
Also, the guy is a moron, the numbers of how economists vote in the study he cites is literally listed. It's 57% democrat
Brody Ortiz
It's a young science mate. It's like me saying Physics is trash because Newton was wrong/answers are no longer used
Elijah Morgan
>IMF
stopped reading there
Jason Kelly
>hurr capitalism works perfectly fine durr
>hurr just look at all these european countries that have far reaching policies of income redistribution, that is essentially socialsm durr
>hurr everything is fine in the US because Scandinavia is doing good durr
>hurr but if you actually want to implement scandinavian system into the US you are a socialist devil durr
Ryan Ramirez
Definite advances have been made in physics in the past 200 years.
Aside from perhaps central banking, there hasn't been a single advancement in economic theory in the past couple of centuries.
Jose Robinson
Why are you anti-science, & anti-evidence? What the IMF ***published*** (note) is broadly in line what other economists thought
Please don't come into these threads. They require a human level of cognitive function
Owen Cooper
Shit son, you literally have no clue what you are talking about.
For starters, go and google the term "game theory".
Colton Phillips
This is really, really wrong.
Grayson Price
>there hasn't been a single advancement in economic theory in the past couple of centuries.
Objectively false
Nolan Murphy
What is this "Scandinavian System" you are talking about? The economies in Scandinavia are vastly different and I don't understand what common theme you seem to discern.
Joseph Sullivan
Is this shit even peer-reviewed? Looks like a step above bioRxiv to me.
His fucking linkedin says he "Had my work featured on the Wall Street Journal, Bloomberg, the Financial Times, Le Monde, El País, Süddeutsche Zeitung, and other world-class outlets" which doesn't sound too serious for an academic.
He's mostly a data analyst apparently.
Eli Nelson
There is hardly any difference between the two, so it's not surprising
Aiden Bennett
t. illiterate
Jayden Johnson
>The views expressed in IMF Working Papers
are those of the author(s) and do not necessarily represent the views of the IMF, its
Executive Board, or IMF management. (From the first page of the paper)
Kevin Rogers
>there hasn't been a single advancement in economic theory in the past couple of centuries.
Chase Cox
not economics
name one
Christopher Bailey
>Portugal
Reeeeeeeeeeeeeeeeeee stop using countries as experiment subjects, haven't they learned anything with the period between wars?
Evan Johnson
I'm also amused by the idea that it took, what, 3 years for anyone to "check the historical data" and all it resulted in is the WSJ and other business news sites titling "IMF Economist Finds This One Weird Trick To BTFO Piketty"
Jayden Harris
There is easily a dozen varied critiques and that's just the tripe listed in wikipedia
You're just a moron sniffing that sweet, sweet I D E O L O G Y
Christopher Watson
IMF is a jewish cabal clearly has an agenda.
Levi Rogers
That is so fucking incorrect I don't even know where to begin
Blake Barnes
I can't fucking wait for economics to become so mathematized that it finally fully sheds its history as a part of political philosophy. then fucking brainlets will finally shut the fuck up about it and realize their opinions aren't worth shit
Nicholas Rodriguez
...
Landon Reed
>better understanding of redistributional effects of international trade agreements
>pigouvian taxes
>cap and trade
>artificial economies
>stress testing
>optimal wage to capital ratio for firms
all within the last 100 years, all off the top of my head
Bentley Morris
Source?
Josiah Perry
Read the thread