Krugman on Piketty: From one celebrity neo-Keynesian to another

Paul Krugman writes in today’s New York Times on the buzz around Piketty’s Capital in the Twenty-First Century. Believe the hype, he advises, but the French economist is certainly no Marxist. The celebrated columnist documents some of the more extreme reactions the book has elicited from Republicans and right-wingers, which he calls “the Piketty panic”:

[C]onservatives are terrified…James Pethokoukis of the American Enterprise Institute warns in National Review that Mr. Piketty’s work must be refuted, because otherwise it “will spread among the clerisy and reshape the political economic landscape on which all future policy battles will be waged”…it has been amazing to watch conservatives, one after another, denounce Mr. Piketty as a Marxist. Even Mr. Pethokoukis, who is more sophisticated than the rest, calls Capital a work of “soft Marxism,” which only makes sense if the mere mention of unequal wealth makes you a Marxist.

It is to Krugman’s credit that he can see through the hysterical right-wing denunciations of Piketty as a “Marxist” or “collectivist,” however. That’s something that can’t really be said for the book’s various “Marxian” admirers. Many on the Left tend to believe the Right’s paranoid rhetoric about fairly anodyne liberalism: if conservatives decry Keynesianism or political correctness as “Marxist” (i.e., economic  or cultural), then it must be!

Yeah, not really. Continue reading