Paul Krugman- That Old-Time Inequality Denial
Brad DeLong links to the now extensive list of pieces debunking the FTs attempted debunking of Thomas Piketty, and pronounces himself puzzled:
I still do not understand what Chris Giles of the Financial Times thinks he is doing here
OK, I dont know what Giles thought he was doing but I do know what he was actually doing, and its the same old same old. Ever since it became obvious that inequality was rising way back in the 1980s there has been a fairly substantial industry on the right of inequality denial. This denial didnt rely on any one argument, nor did it involve consistent objections. Instead, it involved throwing many different arguments against the wall, hoping that something would stick. Inequality isnt rising; it is rising, but its offset by social mobility; its cancelled by greater aid to the poor (which were trying to destroy, but never mind that); anyway, inequality is good. All these arguments have been made at the same time; none of them ever gets abandoned in the face of evidence they just keep coming back.
Look at my old article from 1992: every single bogus argument I identified there is still being made today. And we know perfectly well why: its all about defending the 1 percent from the threat of higher taxes and other actions that might limit top incomes.
Whats new in the latest round is the venue. Traditionally, inequality denial has been carried out on the editorial page of the Wall Street Journal and like-minded venues. Seeing it expand to the Financial Times is something new, and is a sign that the FT may be suffering from creeping Murdochization.
http://krugman.blogs.nytimes.com/2014/05/31/that-old-time-inequality-denial/?_php=true&_type=blogs&_r=0