Taking on Thomas Piketty

IEA NEWSLETTER: Taking on Thomas Piketty  Thomas Piketty is the rock star economist attracting attention from academics, journalists, policy makers and many more. His controversial book, Capital in the Twenty-First Century has proved hugely popular, sparking debate over the issue of increasing inequality and how best to tackle it.  IEA Head of Public Policy debates economist Thomas Piketty on inequality Earlier in the week, the IEA's Head of Public Policy, Ryan Bourne, came face-to-face with the French economist. In a wide-ranging interview on Channel 4 News, the pair discussed whether high marginal tax rates are a good idea, the data behind Piketty’s work, the extent to which inequality should be considered a problem, the taxation of poverty and the future of capitalism. To view click here.  Prof Richard Epstein: A US perspective on Piketty  This week at the IEA Prof Richard Epstein, Professor Emeritus of Law and Senior Lecturer at the University of Chicago Law School, assessed the impact of Piketty’s recent bestseller, Capitalism in the Twenty-First Century, on the US debate on inequality. In this brief interview, Epstein highlights his belief that in the long-term it will not prove persuasive and that capital markets are far more complex than Piketty implies. He indicates that the cause of the inequality is what matters and assesses what the economic impacts of interventionist government policies might be on economic prosperity and what alternative policies might be adopted to improve living standards. To view click here.  Professor Epstein's full lecture at the IEA can be seen below.  Prof Richard Epstein: An attack on Piketty’s thesis and policy recommendations Prof Richard Epstein, Professor Emeritus of Law and Senior Lecturer at the University of Chicago Law School, critiqued Piketty's thesis and policy recommendations in his lecture at the IEA. Piketty’s recent book, Capital in the Twenty-First century, suggests capitalism would lead to exploding inequality of wealth and that net wealth taxes and high marginal tax rates on high earners were necessary in order to rein in these excesses before negative implications for democracy materialise. Epstein outlined why he believes inequality is not the great problem Piketty implies, explaining that Piketty’s understanding of capital markets is misguided and that high taxes on income and wealth will make everyone worse off. To view click here.