'Rockstar' economist Thomas Piketty's new book, Capital and Ideology, has recently been translated in English and Dutch. The book succeeds Capital in the 21st century, which sold 2.5 million copies. Several economists, including Bas Jacobs, Sijbren Cnossen Professor of Public Economics at Erasmus School of Economics, weigh in on Piketty's views and solutions in combatting income inequality as discussed in his newest book.
Politics in economics undermines the credibility of science
Professor Bas Jacobs prefers to see himself as an economist who shouldn't make statements about how progressive taxes should be, or how much inequality a government should deem acceptable. Such matters are political questions which, according to Jacobs, are not the concern of economists. ‘The general public could get the idea that universities are populated by semi-politicians. This undermines the credibility of science,' says Jacobs. Piketty on the other hand, finds that it's impossible to hide your political views, so he argues you’d better be open about it. In his book, Piketty analyses the ideologies that have justified high levels of inequality over the centuries. From the French state society to the Indian caste system, and from American slavery to today's so-called meritocracies. He stresses that the struggle of ideologies in history need to lead to increased dialogue on topics such as progressive taxation, combatting nationalism, and increasing social mobility.
Skepticism amongst other fellow economists
Other economists also seem skeptical about his ideas. George Mason University's professor Tyler Cowen, thinks none of Piketty’s policy proposals are meant to be serious. He points out that taxing property with up to 90 percent within a few years will lead to the confiscation of almost all new wealth. He agrees the rich should pay more taxes but finds the 90 percent proposal to be nonsense. Professor Kenneth Rogoff, from Harvard University, notes that Piketty focusses solely on domestic inequality, while the inequality between countries is much greater. The middle class in the West which Piketty refers to, still belongs to the richest 15 percent of the world's population.
Piketty at Erasmus School of Economics
Thomas Piketty gave a lecture about his new book, Capital and Ideology, at Erasmus School of Economics while visiting Rotterdam for the European Job Market for Economists. In case you missed the talk, you can view the recorded live stream of the lecture here.
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Read the entire article of de Volkskrant here, 20 February 2020 (in Dutch).