Thomas Piketty, heartthrob for leftist women, à chacun son.
Paul Krugman and his socialist friends can’t be happy today. The Financial Times (FT), hardly a right-wing publication, came out with an exposé today about Piketty’s best seller “Capital in the Twenty First Century”, a supposedly landmark book meant to destroy Capitalism and promote the inequality issue both Barack and Hillary hope will sweep Democrats into office in 2014 and 2016.
It seems that the FT investigation found the French socialist economist, Piketty, got his sums wrong. They were the underpinnings of his thesis – inequality is rising thanks to Capitalism.
FT wrote in their weekend edition that the 577-page bore of a book contains ” a series of errors that skew his findings.” They found “mistakes and unexplained entries in his spreadsheets, similar to those that last year undermined the work on public debt and growth of professors Carmen Reinhart and Kenneth Rogoff.”
That’s what happens when an economist concocts a thesis based on a fallacious premise and then tries to make the facts fit into it.
Economic theory is largely a false science in that it’s mostly theories, projections, and presumptions. It has its place but it has been labeled a science when it’s closer to a philosophy.
FT said that the “central theme of Prof. Piketty’s work is that wealth inequalities are heading back up to levels last seen before the first world war.” However, the FT “investigation undercuts the claim, indicating there is little evidence to Prof. Piketty’s original sources to bear out the thesis that an increasing share of total wealth is held by the richest few.”
His book is based on little or no evidence in other words.
Piketty provides endless sources for his estimates of wealth inequality in the US and Europe over the past 200 years but the “spreadsheets have transcription errors from the original sources and incorrect formulas. It also appears that some of the data are cherry-picked or constructed without an original source.”
When FT cleaned up the data, there was no tendency towards rising wealth inequality in Europe after 1970. This was confirmed by an independent source. That is only one example.
Prof. Piketty’s response was to say he used “a very diverse and heterogeneous set of data sources…one needs to make a number of adjustments to the raw data sources.”
Great answer. He uses a lot of sources and always knew it needed tweaking. He didn’t deal with the fact that the foundation on which his theories are held together is wrong!
He said that he knew it could be improved. How about we toss it?
He’s supposedly a rockstar and he makes women swoon. It must be those older women with grey hair down their backs, no makeup and bad eyeglasses. He’s a hero to the leftists in the media and in the Manhattan social circles. They sit around drinking fine wine and philosophizing. Since they all agree with one another, errors are rarely if ever seen or discussed.
The worst part of this is he has been meeting with some very important people in our government like Treasury Secretary Jacob Lew who will use his false data to sell us a story of wealth inequality that simply isn’t true or is distorted to accommodate their political agenda.
He has met with all of Obama’s economic advisers.
Professors from liberal universities such as Colombia have heaped praise on the tome.
Now that it is exposed, will anyone turn tail and run? For his part, Piketty is keeping up the facade, not with fake data, but with invisible data. He said that more recent data not in his work showed “the rise in top wealth shares in the US in recent decades has been even larger than what I show in my book.”
There is probably truth to that. Under Obama, wealth inequality has risen as he feeds Wall Street and sells out Main Street.
Go back to France, Piketty, we have enough far left-wingers here without shipping them in from other countries.