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posted by cmn32480 on Friday June 19 2015, @11:27AM   Printer-friendly
from the spread-the-money-around dept.

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.


Original Submission

 
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  • (Score: 0) by Anonymous Coward on Friday June 19 2015, @02:04PM

    by Anonymous Coward on Friday June 19 2015, @02:04PM (#198226)

    Does serfdom hurt growth or does it not promote growth?

  • (Score: 2) by infodragon on Friday June 19 2015, @03:40PM

    by infodragon (3509) on Friday June 19 2015, @03:40PM (#198287)

    Interesting that statement would be drawn from a neutral statement. I think your bias is showing...

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    • (Score: 0) by Anonymous Coward on Friday June 19 2015, @07:17PM

      by Anonymous Coward on Friday June 19 2015, @07:17PM (#198374)

      Who is biased or not doesn't matter in a discussion because personal traits don't impact the validity of one's statements.

      • (Score: 1) by khallow on Friday June 19 2015, @07:23PM

        by khallow (3766) Subscriber Badge on Friday June 19 2015, @07:23PM (#198378) Journal

        Who is biased or not doesn't matter in a discussion because personal traits don't impact the validity of one's statements.

        Bias does. Which is why we labor, sometimes fruitlessly, to reduce bias.

        • (Score: 0) by Anonymous Coward on Friday June 19 2015, @08:47PM

          by Anonymous Coward on Friday June 19 2015, @08:47PM (#198420)

          Nonsense, facts don't change based on the opinions of the speaker.

          • (Score: 1) by khallow on Saturday June 20 2015, @01:36PM

            by khallow (3766) Subscriber Badge on Saturday June 20 2015, @01:36PM (#198657) Journal

            facts don't change

            Unless they weren't facts to begin with.

        • (Score: 0) by Anonymous Coward on Friday June 19 2015, @11:27PM

          by Anonymous Coward on Friday June 19 2015, @11:27PM (#198490)

          Bringing up the possibility of bias is merely an ad hominem and poisoning of the well, it has no relevance on the facts or the discussion. The poster may be biased, but that doesn't automatically render all of his posts or views invalid.