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: 0) by Anonymous Coward on Friday June 19 2015, @07:17PM
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
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
Nonsense, facts don't change based on the opinions of the speaker.
(Score: 1) by khallow on Saturday June 20 2015, @01:36PM
facts don't change
Unless they weren't facts to begin with.
(Score: 0) by Anonymous Coward on Friday June 19 2015, @11:27PM
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.