A project of the
Institute for Policy Studies

A Forgotten Lesson: It’s the Economy, Stupid

In 1992, James Carville famously coined the phrase, “It’s the economy, stupid!” More than 20 years later, inequality has worsened to an unprecedented degree, but progressives fighting to end inequality have forgotten Carville’s lesson and, in the process, the most potent argument of all.

Piketty’s Model of Inequality and Growth in Historical Context, Part 2

Many individuals helped construct neoclassical economics, often with financial support from the robber barons and their successors. I will focus on two: in the United States, John Bates Clark (1847-1938), and in Europe, Vilfredo Pareto (1848 to 1923).

Thomas Piketty’s Model of Inequality and Growth in Historical Context, Part I

In Thomas Piketty’s doomsday model, slowing of growth in the twenty-first century will cause an inexorable increase in inequality. Piketty is not the first to propose a grand model of inequality and growth. To get some perspective on his model, let’s see what the “classical” economists had to say (Part I), and how the “neoclassical” economists responded (Part II).

Exploding the Debt Threshold Myth

Following on the heels of the 2008 global financial crisis and the associated spike in government borrowing in Europe and the United States, the Reinhart-Rogoff paper quickly became a touchstone for the small-government crowd. Austerity is the order of the day. Reinhart and Rogoff are its prophets.