With Capital in the Twenty-First Century, French economist Thomas Piketty scored a best-seller. Yet, according to a book review by Philip Cross, former chief economic analyst for Statistics Canada, the book features fundamental flaws common to many European economists.
Piketty ignores technology’s impact on economic growth and wealth distribution, and expounds on an exaggerated view of the return on capital and a pessimistic view of economic growth. Piketty is heavily influenced by Europe’s malaise, the fixation on income redistribution, and historical wealth transfer.
Perhaps most troubling, he effectively ignores the power of information technology in shaping the economy and society.
