Scott Alexander summarizes and analyzes various critiques of Thomas Piketty's 'Capital in the Twenty-First Century', finding that many of Piketty's key claims don't hold up well under scrutiny. Longer summary

This post summarizes various critiques and discussions of Thomas Piketty's book 'Capital in the Twenty-First Century'. Key points include: Matt Rognlie's criticism that Piketty didn't correctly account for capital depreciation, and that recent capital-share growth comes primarily from housing. The post questions Piketty's claim about higher returns for the super-rich, with various commenters providing insights on investment strategies and market behavior. It also discusses critiques of Piketty's income distribution statistics and data interpretation. The post concludes that many of Piketty's main claims, such as the rising rentier class and much better returns for the super-rich, don't hold up well under scrutiny, though some of his rules of thumb for growth are more robust than expected. Shorter summary

Scott Alexander reviews Elizabeth Warren's 'The Two-Income Trap', which argues increased two-income families have led to more competition for positional goods without improving financial security. Longer summary

Scott Alexander reviews Elizabeth Warren's book 'The Two-Income Trap', which argues that the rise of two-income families has not improved financial security but instead led to increased competition for positional goods like houses in good school districts. The book challenges common narratives about overconsumption and suggests that families are actually spending similar amounts on luxuries as previous generations. Scott finds Warren's analysis insightful but questions some of her conclusions about the importance of school districts. He appreciates her non-partisan approach and willingness to consider market solutions alongside government intervention. Shorter summary