Chris Giles Challenges Thomas Piketty’s Data Analysis


Chris Giles of the Financial Times has been diving into the source data that underlies Thomas Piketty’s Capital in the 21st Century, and he says he’s found some problems. The details are here. Piketty’s response is here.

Is Giles right? Experts will have to weigh in on this. But Giles’ objections are mostly to the data regarding increases in wealth inequality over the past few decades, and the funny thing is that even Piketty never claims that this has changed dramatically. The end result of Giles’ re-analysis of Piketty’s data is on the right, with Piketty in blue and Giles in red. As you can see, Piketty estimates a very small increase since 1970.

Now, if Giles is right, and there’s been no increase at all, that’s important. But it’s still a surprisingly small correction. The fundamental problem here is that the difficulties of measuring wealth are profound enough that it’s always going to be possible to deploy different statistical treatments to come to slightly different conclusions. There’s just too much noise in the data.

In any case, I’m not taking any sides on this. The data analysis is too arcane for a layman to assess. But it’s worth keeping an eye on.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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