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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: 2, Interesting) by Anonymous Coward on Friday June 19 2015, @02:20PM

    by Anonymous Coward on Friday June 19 2015, @02:20PM (#198236)

    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.

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