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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
(Score: 0) by Anonymous Coward on Friday June 19 2015, @11:06PM
Hence the reason why open source tanked immediately. Why should I bust my ass contributing to open source software when others, who didn't contribute anything, benefit from all the hard work I put into it? It completely saps my motivation when I see stuff like that going on.
False analogy. Nobody is directly profiting from your hard work in open source, and when they do sell the open source stuff everyone who contributes to it certainly does throw a shitfit. Why should you work your ass off when somebody who isn't you is profiting from your work while you get nothing?
Different AC here.
WHOOOOOSH!!