Monday, April 28, 2014

The Illusion of Marginal Productivity

Page 341:
"As noted, the theory of marginal productivity and of the race between technology and education is not very convincing..."
Class dismissed.

3 comments: said...

Of course, Jamie Galbraith's big complaint about Piketty is that he dismisses the Cambridge capital theory critique and seems to go along with MP theory to some extent. But this is where not having read the book yet puts me at a disadvantage for judging.

Sandwichman said...

It is O.K. to "go along with mp theory to some extent." It's when people start to believe in it that the mischief begins. Piketty also makes some uninformed comments about Marx's views on productivity. I don't think that invalidates his analysis. My reservations have more to do with TP's dirigisme. There is no role for collective bargaining (or some other form of non-state collective action) in his prescription for redressing inequality. The omission has analytical as well as political implications.

Unknown said...

The very notion of a race between education-knowledge and technology is ridiculous use of words.

History is a race.

Evolution is a race.

Space-time is a race.

God is a race.....

We are a truly ignorant species.