Investigation questions findings of White House-favored economist

A new investigation has raised serious questions about the findings of bestselling economist Thomas Piketty, whose work on inequality has gotten the attention of the Obama administration.

Piketty’s “Capital in the Twenty-First Century” warns that rising inequality is inherent in the structure of capitalism itself. The argument favors active government involvement in the economy to ensure gains are more evenly distributed. 

On Friday, the Financial Times said that its in-depth look in Piketty’s spreadsheets has revealed serious errors.

{mosads}“The data underpinning Professor Piketty’s 577-page tome, which has dominated best-seller lists in recent weeks, contain a series of errors that skew his findings,” the FT said. 

It said the errors are similar to those that plagued economists Carmen Reinhart and Kenneth Rogoff.  

Those economists propounded a theory about the dangers of a debt crisis, which became a frequent talking point used by congressional Republicans in the fiscal fights that dominated Washington after the 2010 midterms.