Yanis Varoufakis, in an interview by Andrew Mazzone, offers a cogent, damning criticism of Thomas Piketty’s theory, such as it is, of inequality. Varoufakis contends that not only is Piketty’s theory (as opposed to his empirical work) weak and unworkable, it also ignores the true drivers of inequality in a capitalist system, such as differences in bargaining power. Varoufakis contends that Piketty was more interested in coming up with an explanation that would fit a neoclassical framework and thus be well received by mainstream economists than one that would help make the world better by providing real insight into the problem. The inadequate theory leaves Piketty with redistribution as his only possible solution, and he suggests a sketchy,poorly conceived a wealth tax.
The is a lively and provocative talk.