Thomas Piketty with Labour strategist and peer Stewart Wood in The Gladstone Room in parliament. Photograph: George Eaton.
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Thomas Piketty comes to parliament: what we learned

A review of the French economist's appearance with Miliband strategist Stewart Wood.
 

After his recent bravura performance at IPPR, Thomas Piketty, the intellectual of the moment, appeared at parliament today in conversation with Ed Miliband's senior strategist Stewart Wood. The Labour peer and shadow cabinet office minister was one of the first in Westminster to recognise the significance of Piketty's Capital in the Twenty-First Century, tweeting before its British release: "Thomas Piketty's book predicting ever-growing inequality is making waves. We need to start debating how to respond." Today, in the cavernous surroundings of The Gladstone Room (where the PLP and the 1922 Committee hold their weekly meetings), they did just that.

The most politically notable moment of the event, hosted by Class, came when Piketty warned Labour that its planned top tax rate of 50 per cent was "too low" to significantly reduce inequality (caused, as he meticulously documents, by the tendency of the rate of return on capital to outstrip the average growth rate of the economy). The Frenchman rightly noted the absence of evidence to suggest that higher tax rates than this on "very high incomes" (defined as £1m+) will "damage the economy". Although polls show that most voters support a 60p rate, it is a reminder of Labour's self-imposed political limits that there is no prospect of Miliband supporting it (even the 50p rate has been cautiously defended as a temporary deficit reduction measure).

Piketty was warmer about the party's backing for a mansion tax on properties worth more than £2m, but urged it to go much further in taxing wealth in general. One of the justifications he offered was that this would enable governments to reduce taxes on the poor and allow them to begin accumulating capital.

He emphasised, however, that redistribution was a necessary but insufficient solution to inequality. As well as taxing the wealthy more and the poorest less, the state must also engage in "predistribution": stopping inequality before it starts. On the day that the Lib Dems pledged to ring-fence the education budget in future coalitions, he championed investment in education and skills, and a higher minimum wage as the key to a more equal society.

While Piketty is often assumed to be a revolutionary socialist (partly owing to his book's conscious allusion to Marx), his comments today were a reminder that he is actually a mainstream social democrat. He noted several times that he has "no problem with inequality per se" and argued that "up to a certain point, it can be useful for innovation and for growth".  It was "extreme inequality" that was indefensible, he said.

Challenged by my former NS colleague Mehdi Hasan on whether Labour's programme was truly bold enough to respond to Piketty's diagnosis, Wood emphasised the party's commitment to both redistribution and predistribution and said he was keen to encourage "debate" among all parts of the political spectrum on how to do more.

Among the wonkish discussion, some light relief was supplied by Len McCluskey. In his question to Wood, the Unite general secretary mistakenly referred to him as an Arsenal fan. The lifelong Liverpool supporter, whose official title is Lord Wood of Anfield and whose Twitter avatar is the club's badge, looked appropriately mortified.

P.S. I interviewed Wood earlier today on Piketty's work and will be posting the conversation on The Staggers later this week.

George Eaton is political editor of the New Statesman.

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Can the disciplined Democrats defeat Trump’s maelstrom of chaos?

The Democratic National Convention has been exquisitely stage-managed and disciplined. But is it enough to overcome Trump’s news-cycle grabbing interventions?

The Democratic National Convention did not begin auspiciously.

The DNC’s chair, Debbie Wasserman Schultz, was unceremoniously launched as if by an ejector-seat from her job on the eve of the convention, after a Wikileaks dump of internal emails painted a picture of a party trying to keep the insurgent candidate, Vermont senator Bernie Sanders, from blocking Hillary Clinton’s path to the nomination.

One email, in which a staffer suggests using Sanders’ Jewish faith against him as a candidate in order to slow his insurgent campaign, was particularly damning in its optics and Schultz, who had tweeted with some hubris about her Republican opposite number Reince Priebus during last week’s Republican convention in Cleveland, had to fall on her sword.

Clinton’s pick of Tim Kaine as a running-mate – a solid, safe, and unexciting choice compared to a more vocal and radical campaigner like Elizabeth Warren – was also criticised, both by the media, with one commentator calling him “a mayonnaise sandwich on wholewheat bread”, and by the left of the party, who still held out hope that the Democratic ticket would have at least one name on it who shared the radical vision of America that Sanders had outlined.

On top of that, Kaine, who is a Catholic, also disappointed many as a vice-presidential pick because of his past personal history of opposition to abortion. Erin Matson, the co-director of the reproductive rights group ReproAction, tweeted that Kaine being added to the ticket was “tremendously disappointing”.

On the other side, Donald Trump had just received a poll bump following a terrifying speech which recalled Richard Nixon’s 1968 convention address. Both speeches appealed to fear, rather than hope; many are calling Trump’s keynote his “Midnight in America” speech. Just before the Democrats convened, analyst par excellence Nate Silver and his site, 538.com, forecast Trump’s chance of victory over Clinton in November at above 50 per cent for the first time.

On top of that, Bernie Sanders more vocal supporters arrived at the Democratic convention – in Philadelphia in the grip of a heatwave – in relative force. Protests have already been more intensive than they were at the RNC, despite all expectations to the contrary, and Sanders delegates disrupted proceedings on the first day by booing every mention of Hillary Clinton’s name.

But then, things appear to turn around.

The second day of the convention, which saw Hillary Clinton formally nominated as the first female presidential candidate in American history, was less marred by protest. Bernie Sanders addressed the convention and endorsed his erstwhile rival.

Trump’s inability to stop prodding the news cycle with bizarre non-sequiturs turned the focus of what would otherwise be a negative Democratic news cycle back onto him; an unforced error which led to widespread, if somewhat wild, speculation about his possible links with Putin in the wake of the news that Russia had been behind the email hack and lightened some of the pressure on the Democrats.

And then Michelle Obama took the stage, delivering an oration of astonishing power and grace (seriously, watch it – it’s a masterclass).

Compared with the RNC, the Democratic National Convention has so far been exquisitely stage-managed. Speakers were bookended with pithy, designed-for-virality videos. Speakers started on time; headliners played in primetime.

Both Trump and Clinton have now addressed their conventions before their headline speech remotely, via video link (Trump also engineered a bizarre early-convention pro-wrestling-style entrance), which put observers of both in mind of scenes from V for Vendetta.

But the imagery of Clinton’s face appearing on screen through a graphic of shattering glass (see what she did there?) will likely be one of the moments that sticks most in the memory of the electorate. It must kill the reality TV star to know this, but Clinton’s convention is getting better TV ratings so far than the RNC did.

Michelle Obama’s masterful speech in particular provided stark contrast with that of Melania Trump – an especially biting contrast considering that parts of the latter’s speech last week turned out to have been plagiarised from the former. 538’s forecast saw Clinton slide – barely – back into the lead.

A mayonnaise sandwich Tim Kaine might be, but he is nonetheless looking like a smart pick, too. A popular senator from a key swing state – Virginia – his role on the ticket is not to be a firebrand or an attack-dog, but to help the former secretary of state reach out to the moderate middle that Trump appears to be leaving entirely vacant, including moderate Republicans who may have voted for Mitt Romney but find Trump’s boorish bigotry and casual relationship with the truth offputting. And the electoral mathematics show that Trump’s journey to victory in the electoral college will be extremely difficult if Kaine swings Virginia for Clinton.

Ultimately, the comparison between the Democratic convention in Philadelphia so far and last week’s chaotic, slapdash and at times downright nutty effort in Cleveland provides a key insight into what this election campaign is going to be like: chaos and fear on one side, but tight discipline on the other.

We will find out in November if discipline is enough to stop the maelstrom.

Nicky Woolf is a writer for the Guardian based in the US. He tweets @NickyWoolf.