Richard Epstein, a libertarian law professor, reviewed my new book, “The Upside of Inequality: How Good Intentions Undermine the Middle Class“, for the WSJ. Unfortunately, Epstein misses the central point of the book — that capital no longer limits growth in today’s knowledge-based economy. Today, properly trained talent and the economy’s capacity and willingness to bear risk drive growth while savings sit unused despite near-zero interest rates. This lack of understanding undermines his criticism of the book.
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