Piketty's Thesis Rests on a False Theory of How Wealth Evolves in a Market Economy, a Flawed Interpretation of U.S. Income-Tax Data, and a Misunderstanding of the Current Nature of Household Wealth

Thomas Piketty has recently attracted widespread attention for his claim that capitalism will now lead inexorably to an increasing inequality of income and wealth unless there are radical changes in taxation. Although his book, Capital in the 21st Century (Piketty 2014), has been praised by those who advocate income redistribution, his thesis rests on a false theory of how wealth evolves in a market economy, a flawed interpretation of U.S. income-tax data, and a misunderstanding of the current nature of household wealth.

--Martin Feldstein, "Piketty's Numbers Don't Add Up," in Anti-Piketty: Capital for the 21st Century, ed. Jean-Philippe Delsol, Nicolas Lecaussin, and Emmanuel Martin (Washington, DC: Cato Institute, 2017), Kindle e-book.