Phillip W. Magness

Historian – 19th century United States

New evidence is undermining the ‘Inequality Scare’

| March 16, 2016

Almost two years have passed since the publication of Thomas Piketty’s Capital in the 21st Century, and the larger genre of economic research on the distribution of wealth has exploded since that time with complementary arguments being advanced by economists Emmanuel Saez and Gabriel Zucman, as well as economic popularizes on the left including Paul Krugman and […]

Piketty uses false history to promote Bernie’s tax plan

| February 20, 2016

Thomas Piketty is back in the news again with a strange new political op-ed espousing the presidential candidacy of Bernie Sanders. As with most things Piketty, his end game in backing Sanders comes down to higher taxes. Sanders has pledged to raise income tax rates on the upper brackets, so Piketty has accordingly attempted to […]

Quick thoughts on the new Piketty-Saez-Zucman Income Inequality Study at AEA

| January 6, 2016

The American Economic Association held its annual meeting in San Francisco this week. Consistent with the recent surge of interest in inequality research, one of the papers generating the most buzz was a new income inequality time series by Thomas Piketty, Emmanuel Saez, and Gabriel Zucman. The paper itself has not been released yet, but its […]

Fed economists attempt to piketty their own U.S. inequality data

| December 26, 2015

Earlier this month the St. Louis Federal Reserve published a new briefing paper by economists William R. Emmons and Lowell B. Ricketts, in which they claimed to find recent evidence of the growing inequality trends predicted in Thomas Piketty’s Capital in the 21st Century. As asserted in the Fed paper: “Data from the Federal Reserve’s Survey of Consumer Finances […]

Saez-Zucman, the “Forbes 400,” and a new round of inequality data oddities

| October 18, 2015

When Thomas Piketty’s main inequality chart for the United States came under scrutiny from myself and others over the last year, he was largely non-responsive despite his mounting of a vigorous defense of other areas of his data. (My step-by-step deconstruction of the chart may be found here for reference. Similar criticisms figured prominently in my article […]

Hayek anticipated Piketty by 60 years

| May 9, 2015

This morning I came across the following passage from an article that F.A. Hayek published in 1956, entitled “Progressive Taxation Reconsidered.” Their content struck me as particularly prescient, as they directly anticipated both the punitive dimensions of Piketty’s wealth tax proposal, and the vulnerability of progressive income taxation to political capture. As Hayek writes: “With scales […]

Piketty goes cherry-picking for US Wealth Inequality

| January 2, 2015

One of the main critiques I’ve made of Thomas Piketty’s data, starting on this blog last May and appearing in my newly released paper with Robert Murphy on the subject, concerns his Figure 10.5, purporting to show the trend of wealth inequality in the United States. As I pointed out at the time, this chart suffers […]

An Empirical Critique of Thomas Piketty’s “Capital in the 21st Century”

| December 29, 2014

I first became aware of Thomas Piketty’s book Capital in the 21st Century last spring, though not from the onset of “Pikettymania” amidst its skyrocketing to the top of the best seller list. Rather, a couple of faculty colleagues brought it to my attention for its data. Knowing of my own research interests in historical […]

Piketty, Saez-Zucman, and the primacy of high progressive taxation

| October 28, 2014

Earlier this year I blogged at length about a series of data errors, large and small, in Thomas Piketty’s bestselling book Capital in the 21st Century (a summary of Piketty’s remaining errors may be found here, and an extended discussion of Piketty’s misuse of Soviet Union data assumptions to produce a desired result may be found here). One of […]