A new study (abstract and free PDF available) authored by several economists at the IMF (International Monetary Fund) reveal an inverse relation between increases in inequality and GDP growth. In what could also be considered a heavy blow to trickle-down economic theory, data analyses show (page 7) that increases of income share on the fifth quintile actually hurt growth, while increases in any other quintile favours growth with the lowest quintile showing the strongest push.
From the abstract:
We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class.
(Score: 1, Insightful) by Anonymous Coward on Friday June 19 2015, @12:59PM
It's the golden rule: he who has the gold, makes the rules.
What do people with lots of gold want? Mostly: more gold. How do you get that? Under the current set of laws and customs: invest in growing companies.
(Score: 2, Interesting) by Anonymous Coward on Friday June 19 2015, @02:20PM
Always with the gold...
Thing about gold is that it had little practical value back in the day, except that it didn't rust into nothing when left exposed to the elements.
This then made it a wonderful material for making tokens.
Said tokens likely started out as weights used to measure up an amount of grain or similar at a market.
And to settle disputes those weights then got certified by some local military power.
(Score: 3, Insightful) by Joe Desertrat on Friday June 19 2015, @06:57PM
What do people with lots of gold want? Mostly: more gold. How do you get that? Under the current set of laws and customs: invest in growing companies.
That's the old and slow way of doing things. It is much faster to buy a company, hype up its profits by gutting the staff, then selling it off just before it crashes due to the lack of ability to perform any longer.