Mrs. Clinton agrees income inequality is a problem and then explains why it’s not.
Media reaction to this week’s Hillary Clinton interview with the German magazine Der Spiegel has focused on her humorous claims of poverty at the time she and husband Bill left the White House. But perhaps most interesting are Mrs. Clinton’s thoughts on Thomas Piketty’s “Capital in the Twenty-First Century.”
The nearly 700-page screed against income inequality has become the Bible of the political left, even though hardly anyone reads it. (University of Wisconsin math professor Jordan Ellenberg recently used e-book usage data to proclaim Piketty’s tome “the summer’s most unread book.”)
It’s good people aren’t wasting their time, for as Martin Feldstein noted in these pages, Mr. Piketty’s thesis rests on “a flawed interpretation of U.S. income-tax data, and a misunderstanding of the current nature of household wealth.”
But despite the book’s failure to advance public understanding of economics or to command reader attention, it remains a political powerhouse. And that’s why Mrs. Clinton’s comments on Mr. Piketty’s ideas are significant.
In the Spiegel interview, Mrs. Clinton at first agrees that income inequality is “threatening democracy.” But when pressed on the subject of her own gargantuan compensation, she goes in another direction:
“SPIEGEL: The average annual income of an American household is $43,810… You earn up to $200,000 an hour for a speech. Can you understand if people are bothered by that?
“Clinton: Well, certainly, I can understand that, but that’s never been the crux of the concern in our country, because we’ve always had people who did better than other people. That’s just accepted. The problem is that people on the bottom and people in the middle class no longer feel like they have the opportunity to do better. The question is, how do we get back to having an economy that works for everybody and that once again gives people the optimism that they too will be successful.”