The IGM Economic Experts Panel consists of top economics professors who are surveyed about major public-policy issues. The most recent survey, today’s, explores their views on Thomas Piketty’s theory of wealthy inequality. The survey is titled, appropriately, “Piketty on Inequality.”
The professors were asked whether they agree with the following statement: “The most powerful force pushing towards greater wealth inequality in the US since the 1970s is the gap between the after-tax return on capital and the economic growth rate.”
Two percent of the professors agreed, versus a whopping 63 percent who disagreed. More specifically: None strongly agree, 2 percent agree, 14 percent are uncertain, 47 percent disagree, 16 percent strongly disagree, and 5percent have no opinion.
That’s a pretty serious defeat for the Piketty hypothesis. If there’s a 2 percent chance of rain, I’m not bringing an umbrella.
Each respondent-professor is allowed a comment, which you should read if you’re interested. My AEI colleague James Pethokoukis rounds up a few good ones on our blog. For more, check out my Corner post from last month on Daron Acemoglu and James A. Robinson’s compelling response to Dr. Piketty.
Hopefully this survey cools the fawning adoration a bit. Drop it down to the right temperature and it will shatter.
https://twitter.com/MichaelRStrain/status/522128593229733888
— Michael R. Strain is a resident scholar and economist at the American Enterprise Institute. You can write to him on Twitter at twitter.com/MichaelRStrain.