Brocker.Org: A study of the richest people in Britain challenges the famous economist Thomas Piketty’s theory about wealth

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French
economist and academic Thomas Piketty, poses in his book-lined
office at the French School for Advanced Studies in the Social
Sciences (EHESS), in Paris May 12, 2014.

REUTERS/Charles Platiau

Thomas Piketty, a Nobel Prize winning economist, shot
to fame in his 2013 when he published his book “Capital in the
Twenty-First Century,” which focuses on wealth and income
inequality.

But the latest study of data from, the yet to be published,
The Sunday Times Rich List is the
latest in a line of commentary that challenges
his claims

 from that
wealth typically remains in the same families for
generations.



The Sunday Times Rich List

, which will be released in
May, was studied by the Centre for Economics and Business
Research. The CEBR pointed out in the study in that
there has been a huge shift in how the richest people
in Britain get their money.

“Wealth is often gained and lost within three generations,”
says the report. This means that getting into the list, which
ranks the 1000 richest people in Britain, and then exiting it, is
a “revolving door.” It is no longer a list that mainly
features aristocrats.

“The Sunday Times Rich List data challenges the idea that wealth
sits in the same families’ pockets for generation after
generation. The very rich are a changing cast of people,” said
Professor Douglas McWilliams, who conducted the research, to The
Sunday Times. McWilliams is set to feature his findings in a
forthcoming book called “The Inequality
Paradox.”

The Sunday Times Rich List data challenges the idea that wealth
sits in the same families’ pockets for generation after
generation

“The reality is that there is a lot of truth in the old
Lancashire term ‘from clogs to clogs in three generations’.”

Piketty is one of the most famous left-wing economists in
the world after he released his book “Capital in the
Twenty-First Century” in 2013.

He was heralded by the left-wing for his claims
that wealth inequality had widened in the UK and that,
generally, the rich are just getting richer because when a family
makes a fortune, it just keeps getting passed on from
generation to generation.

He then joined Jeremy Corbyn’s economic advisory council for the
Labour party in 2015
 on the leader’s pledge to cut UK
austerity implemented by the Conservative government. The council
was set to meet four times a year to prep shadow chancellor John
McDonnell and give lectures to MPs on economic matters in
Westminster.

However, a number of analysts and economists have criticised
Piketty’s findings. The most notably being the Financial Times
which questioned Piketty’s conclusion
that wealth inequality had widened in the UK.
Others also joined in
 and Piketty responded to the
allegations in detail and
did a follow up with the FT. 

Piketty also then quit his role as an advisor to the
Labour party
 in June, 2016, just one week after the
EU referendum, blaming its “very weak” EU referendum
campaign and that
he was “deeply concerned” with the prospect of a
Brexit
.

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