Thomas Pikettyâ??s best-selling â??Capital in the Twenty-First Centuryâ? has given policy makers and pundits a renewed excuse to call for the redistribution of wealth and higher taxes.
But it is time for the French economist to move out of the limelight. Two eminent economics professors, Carnegie Mellonâ??s Allan Meltzer and the Wharton Schoolâ??s Scott Richard, are challenging his conclusions with a new model and different data. Contrary to popular wisdom, they find that government redistribution increases inequality rather than reducing it.
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