Sunday, June 01, 2014

Steve Roth on Seth Ackerman on Piketty

From Angry Bear "I’m stunned by how good the new Jacobin piece by Seth Ackerman is: “Piketty’s Fair-Weather Friends.” It gives what I find to be the best understanding so far of the whole Piketty “think space.” "
I agree. Here is Seth's article at Jacobin.
I have also liked articles by Michael Hudson and Matt Bruenig. But probably Seth Ackerman's article does it for now.
P.S. An excerpt from Seth Ackerman's article"
"The statistical image that emerges from these numbers is neither Piketty’s vision of rising returns to “capital” as such, nor Krugman’s picture of an increase in returns to managerial “labor.” Rather, we see the burgeoning of a general surplus: an excess of national income over and above what’s needed to pay the nation’s non-managerial workers, appropriated broadly by all those who control capital — whether as shareholders, managers, or financiers............
Note the sheer size of the shift in this chart: had it not occurred, the average non-managerial worker’s compensation would be more than 20% higher today."
P.S. There is some discussion of Seth Ackerman's review in the comments in a CT post.

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