Where Is the Inequality Problem?

CAMBRIDGE – Reading Thomas Piketty’s influential new book Capital in the Twenty-First Century, one might conclude that the world has not been this unequal since the days of robber barons and kings. That is odd, because one might conclude from reading another excellent new book, Angus Deaton’s The Great Escape (which I recently reviewed), that the world is more equal than ever.

Which view is right? The answer depends on whether one looks only at countries individually or at the world as a whole.