Some commentators describe Piketty as a sort of neo-Marxist. Are they right?
No. The central thesis of Piketty’s book is that, under normal conditions, the rate of return enjoyed by the wealthy on their investments exceeds growth in GDP, which means the rich, relative to the rest of society, get richer. The thesis is supported by substantial historical data. He makes it clear that extraordinary conditions, such as war and large policy shifts, can override the general rule. In other words, the rich getting richer is not the result of some sort of natural law.
Piketty doesn’t embrace dialectical materialism, the labor theory of value, or the other critical Marxist concepts that I addressed earlier in the week. And so, while his thesis does sound vaguely Marxist, it is inappropriate to associate his views with orthodox Marxism.