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N. Gregory Mankiw
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I would much rather see, rather than policies that taxed capital if people accumulate too much, I'd rather see policies that encourage people at the bottom to accumulate capital. For example, things like automatic enrollment in K plans so that the typical worker out there when they get a job can put some of that away and they can become capitalists as well.
Piketty Vs. Mankiw On Economic Challenges And Inequality | On Point
Piketty noted the inequality of the US system leaves a lot to be desired. You know, I'm not saying that we should have perfect equality where it would be fifty percent by definition of national wealth for the bottom. I'm just saying that it's hard to pretend that two percent is the best we can do. I think there must be an instition that make it to five percent, eight percent, I don't know, would you really say that two percent is the social optimum, that there's nothing more for the bottom half of the population, we can do?
Mankiw found Piketty's concern for optimization as too close to the politicization of economics. I think we need to think about what is economics, and what are the facts, and what's the forecast, and then when we think about normative economics, as what should we do, you have to realize that that's not just a matter of science that's a matter of philosophy, that's a matter of political philosophy. Their entire conversation is worth a listen — especially a section on the shrinking middle class and its implications on democracy — and we'd love to hear your take on the tax and economic talk here.
Who's got a better handle on the pulse of the moment?
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