Naked Capitalism has the article What Thomas Piketty and Larry Summers Don’t Tell You About Income Inequality by Lynn Parramore, Senior Editor at INET. Originally published at INET.  I think the article is an interview of economist Lance Taylor by Lynn Parramore. The article introduction explains the following:

In a new paper for the Institute For New Economic Thinking’s Working Group on the Political Economy of Distribution, economist Lance Taylor and his colleagues examine income inequality using new tools and models that give us a more nuanced — and frightening —picture than we’ve had before.  Their simulation models show how so-called “reasonable” modifications like modest tax increases on the wealthy and boosting low wages are not going to be enough to stem the disproportionate tide of income rushing toward the rich. Taylor’s research challenges the approaches of American policy makers, the assumptions of traditional economists, and some of the conclusions drawn by Thomas Piketty and Larry Summers. Bottom line: We’re not yet talking about the kinds of major changes needed to keep us from becoming a Downton Abbey society.

I’ll let you read the article to see what Taylor says about the causes and what can be done about it.  One thing that struck me was the following question and brief answer:

LP: In your view, is there anybody in the U.S. offering meaningful approaches to income inequality?

LT: Not in the general political debate.

In my opinion, our best hope for a politician who might offer meaningful approaches to the problem is Bernie Sanders.  In this department, he is even way ahead of Elizabeth Warren.  Elizabeth Warren certainly has an excellent understanding of the causes of the problem.  However, I believe that she is way behind Bernie Sanders in understanding economics well enough to be able to propose solutions that will have much impact.

The main indication I have that Bernie Sanders gets this is his appointment of Stephanie Kelton as the head Economist for the minority on the Senate Budget Committee.  She was sitting beside Bernie Sanders when he made an important presentation to the committee.  I’d bet my bottom dollar that she is the one who suggested the chart around which his presentation focused.  I would also be willing to bet that she is the one who prepped him on the words to speak.

See my previous post Senator Bernie Sanders presents Tcherneva’s research to Show How Reagan Helped Destroy the Middle Class for the evidence.

If Bernie Sanders and Stephanie Kelton don’t manage to change the country’s thinking on a whole lot of economic mythology, then we are in for a very long and unhappy time in America that is not going to end nicely.  Think of how well the French nobility came out in the the French Revolution. (Did you get the sarcasm of that last sentence?) (If you think that Hillary Clinton has a chance of getting a clue about getting a clue, I have only one thing to say, “Oh, puhleeze!” She probably still bows down at the altar of Larry Summers. At least Elizabeth Warren has demonstrated that she doesn’t think very highly of Larry Summers.)