Do Economists Understand the Economy?

Lance Taylor discusses the complexities of understanding the economy, highlighting the division between macro and microeconomics. He critiques the notion of the market as a self-correcting entity, especially in light of financial crises. Taylor emphasizes the role of social institutions and debates on inequality, referencing Piketty's work and the Occupy movement. He explores factors driving inequality, such as human capital and CEO wages, and discusses wealth accumulation limits. Taylor concludes with concerns about future inequality and potential social unrest.

What changes are suggested to effectively confront the issue of inequality?

How does the capitalist class's reliance on capital income affect wealth distribution?

What are the potential consequences of not addressing inequality?

What is the significance of the Occupy movement in the context of economic inequality?