He didn’t have to fudge the data however, Piketty is fundamentally wrong about how capital snowballs and why the wealthiest have increased their share of wealth in the USA since about 1970. In a nutshell it is because of the financialization of the economy enabled by a truly fiat currency entirely manipulated by acentral bank which is not restricted by honest money, gold backed money. That’s my take anyway, and it seems fairly obvious. Easy money benefits the bankers and the politically connected first, the 1%.
But if indeed Piketty “fudged” his data as the Financial Times claims that is just another reason Mr. Piketty is not the heavyweight some thought he was.
[W]hen writing an article on the distribution of wealth in the UK, I noticed a serious discrepancy between the contemporary concentration of wealth described in Capital in the 21st Century and that reported in the official UK statistics. Professor Piketty cited a figure showing the top 10 per cent of British people held 71 per cent of total national wealth. The Office for National Statistics latest Wealth and Assets Survey put the figure at only 44 per cent.
Whoa! Piketty’s figure for wealth concentration in the present–so we’re not quibbling over 1810 here–was off by 27 percentage points. Like Will Ferrell, that’s kind of a big deal.
Read More at Against Crony Capitalism
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom