Category Archives: Thomas Picketty

More re Picketty’s Plight and Centralist Modern Monetary Theory

In his blog entitled “Picketty in Brief,” dated Sunday, July 24, 2022, N. Gregory Mankiw asks what might be Thomas Picketty’s present thinking about inequality. Has it changed?  If so, how and why?  Also see on this website “Picketty’s Plight.”  in which we quote Philip McShane’s claim that, unless one has a normative explanatory theory yielding precepts as to how enlightened participants in the economic process should adapt and conduct themselves, one can only helplessly and hopelessly suggest harmful bureaucratic centralist solutions – such as disequilibrating taxation and intrinsicallyinflationary deficit spending. Continue reading

Picketty’s Plight

We are at the heart of Picketty’s plight: he has no clue of the needed grip on the grounds of the inequality in history.  So, what else can he offer but a centralist solution, taxation, to history’s drunken careening? (McShane, Philip, Picketty’s Plight, 53)

Simple-minded moralists and sentimentalists without intelligence do not provide the required normative theory which explains the process and supplies precepts for adaptation. “…man as external agent has not the systematic guidance he needs to operate successfully the machine he controls.” [CWL 21, 109]  

Academics have not discovered, understood, formulated and taught the dynamics of surplus and basic expansion.

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