The “savior of socialism” proves the worth of capitalism 8

Today we post, in our Pages section, a review of Capital in the Twenty-First Century by Thomas Piketty. 

The review, by Don L, is titled:  The “Savior  of Socialism” Proves the Worth of Capitalism. (To go there, click on the title under Pages, at the top of our margin.)

Here is an extract :

Piketty’s Marxian monster is one nonsensical – and previously discarded – economic notion after another. He doesn’t grasp that there is no distribution of income, favorably or negatively, in a Free Market Capitalistic system. All wealth is allocated by consumers … they are kings and queens of an economy and of a truly JUST society. They determine what producer satisfies needs and wants most successfully. It’s consumer meritocracy! Nobody from General Foods ever shows up at the door with a threat of imprisonment if you don’t buy. Further, Piketty holds to the long-ago-tossed idea that capital is homogeneous. Capital is heterogeneous, and it is the putting together, by an entrepreneur, of the right combination of capital to serve consumers’ demands, in an uncertain environment, that determines profit or loss. Remember, an entrepreneur pays wages well in advance of sales revenue. There is absolutely no such thing as a guaranteed or certain rate of return on capital such as Piketty chronically and erroneously incorporates in his formulations. …

Mr Piketty’s book, except for unintentionally proving that government causes income inequality, is worthless, and his endeavor is doomed. Piketty fails to comprehend that inequality arises when government economic intervention distorts free exchange into an unnatural 3-party, buyer-seller-government, lose-lose-win by coercion, framework. He just doesn’t understand that there can never be a sufficiency of data, nor a mathematical model, by which you can emulate the free and willing, person-to-person, win-win interaction of hundreds of millions of people making trillions upon trillions of decisions about what they think is best for themselves as they allocate dollars/wealth through exchange. Governments cannot legislate or impose a false reality.

“Socialism fails because it’s based on the emotion of SHOULD.

Free Market Capitalism succeeds because it’s based on the reality of IS.”

Ludwig von Mises

The author supplies a very useful list of books at the end of the review.

Posted under Capitalism, Commentary, Economics, Socialism by Jillian Becker on Tuesday, May 20, 2014

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This post has 8 comments.

  • Don L

    I was honored when Jillian asked if I might review Piketty’s book. I understood the book was big and foresaw the grind coming. I did not realize the mental torture having to get through the 697 pages of insult to economics Piketty produced.

    And, what is troubling is going to Amazon and reading reader comments…lotsa commies around. Anyway I hope you get a chance to read the whole review. I think you’ll enjoy his unintentional validation of capitalism. But be aware, this guy’s junk is being promoted everywhere. I suspect our establishment conservatives will adopt this nonsense too.

    • The Burro

      Don El #268! In full flood I see!

      Well you have certainly got off to a great start about the Pick-person’s book, not to mention a finish. I hope to God it did not completely finish you. We are going to have fun with this one, #268. I foresee several marvelous exchanges but I just have to catch up with you in your vast reading effort!

      I thought your review was masterful, and quite insightful. In these recent weeks I have been actually putting together a mini-library on “distribution” and have found a lot of surprising things, one of which is to stop an increasing “inequality” you will have to stop people getting older – it is very related to the age distribution of the populace. Now of course the Gov can do everything with perfect foresight, but even for Lenin’s babe in the White House, stopping old age may be a tough one.

      Pick-the-nose of course wants to simply tax wealth high. Well, them what makes the bucks may just take a hike. Ever wondered why London has loads of French entrepreneurs? Probably not the weather #268. They left the Utopia of France. Of course, as a chosen member of the back-slapping community Mr P will never have either the aspiration or ability to run an enterprise, and create wealth that way – he has done it by writing a Socialist treatise and when I tried to reach him I wanted to ask if he ever had a real job, or did he intend to give away his book millions to avoid Paternal Capitalism is almost certainly a bad thing, but I’ll bet not for me….

      So keep at it and I will try to finish the reading soon. You may also want to look at Mervyn King’s review which had some elements of yours – clever of you to spot the inter-group movements and changes in the composition of the strata.

      You admirer,

      The Burro

      • Don L

        Donkey…thank you. I just read the Mervyn King review. Of course, as a central banker…big one at that…he still disregards central banking and monetary controls as the culprit.

        I have seen these ideas about aging…indeed, the (love it) Picknose fella does discuss it but I just don’t remember all the pain. But, it’s aging problems tied to the should promises of SS and Medthis and that. Now I want to get into control of healthcare and on and on…another day.

        Anyway, thanks much. I appreciate YOUR feedback and always the chance of assertive exchange. !!!

        • The Burro

          Donkey! Burro please. We will be talking about this I can assure you O’ Don.

          The Burro

          • The Burro

            Don El #268!

            A great leap forward has just occurred!

            No less than the Financial Times of London has right on it’s front page today, Saturday, an expose of Pick-your-number’s book and the loony numbers it contains. It then proceeds to demolish most of the Socialist conclusions on page 3. I will try to take a copy of the articles and upload if the FT is just too pink for you to buy, which I totally understand. These damn hooves are divils to work with!

            The Pick-your-# man has been shown to have attended the “Al Gore” school of statistics, and not only made errors of transcription ie putting numbers in the wrong place which surprise, surprise, was beneficial to HIS thesis but not the opposite, but “….the investigation found numerous mistakes in Prof. Pick-ur-#’s work: simple fat-finger errors; sub-optimal averaging techniques; multiple unexplained adjustments to the numbers; data entries with no sourcing; unexplained use of different time periods; and inconsistent uses of source data.” Apart from that it was bang-on and completely unbiased.

            Please note, we of the Burro klan always strive for complete honesty and never make things up or adjust numbers inappropriately. All adjustments are entirely transparent, free for all to see and always in our favour. We cannot be held responsible for inadvertent errors which we feel sure Krugman the Magnificent will expose and comment on ruthlessly.

            In the meantime, Picky has says he is “…happy to change my (ie his) conclusion!” should such numbers be incorrect. OK, OK #268 time for a wager. How long will it be before a rampant Socialist changes his mind? I will stake this one BIG – I will bet you he does not change his mind afore I have a sex change operation to become a Burress. How about that #268? What will you put up Oh Wise One?

            The Cloven-Footed One

            • Don L

              Dear Burro, I bet your right! I win. (incidently, your object ‘d bet may explain donkey – character fron Shrek – doing imagery for Burro…hmmm?)

              Krugman will weasel and dodge and never admit wrong-mindedness. As in my review, getting a socialist to drop irrational emotional drive for actual thinking…tough trick.

              piketty, piketty do…his book belongs in the loo;.
              it’s difficult to read…it’s a horrid misdeed;
              and, it’s content is drivel and pooh!

              It is good to know we were right about this clownetty.

              I had no facility to verify his data and his equations, even if right, they, were of no use anyway…the idea of them was prima facie wrong. Your background check on his was quite interesting…reads almost like a Gore bio. LOL.

              Did you see the article where Piketty was accuses of beating his girlfriend in France. Understandable why Obama liked him: Sharia Law conforming behavior.

              Oh…I played and updated the chart. Amazing how his income data mirrors the DOW chart for the period. The Dow, of course, being direct evidebce of the FED being guilty of the unnatural wealth transfer, to use his terms, After the FED manipulations, banks and cronies invest (low interest precludes holding cash/savings…money plowed int the market. His explanation was managers get to set their own salaries…quite an analyst he is…LOL

              Not only was his data wrong…the Marxist proved Capitalism


    “Socialism fails because it’s based on the emotion of SHOULD.

    Free Market Capitalism succeeds because it’s based on the reality of IS.”
    Dead on.

    And for those of you who don’t believe this little line, just take a look at the weak-kneed, gutter rats presently in charge at the moment who are exactly the same as the weak language word “should,” used to describe their failure of a system.

    Emotions are ok, but only if they are used in conjunction with common sense, logic, and reason.

    Three more subjects where Socialism fails.

    Yes, liz, the religious follow this same line of stinking thinking when they spout their buzz word ‘faith.’

    You wouldn’t base your financial life strictly on emotions and still remain above water. You wouldn’t pick a mate based strictly on emotions. Las Vegas is full of folks who did this. They now live in the gutters of The Strip.

    Religious people seem content to pick their restrictions on free thought based strictly on emotions, this ‘con-artist’ of brain functions.

  • liz

    Great article!
    Yes, Piketty is just another in a long line of brain-dead idiots recycling the same disproved theories. It’s a crying shame that anyone still believes this stuff.
    I love the quote from Mises, “Socialism fails because it’s based on the emotion of should. Free market capitalism succeeds because it’s based on the reality of is.” Atheism is also based on the reality of is, and succeeds for the same reason.