Inequality is bad for growth of the poor
Van der Weide, Roy / Branko Milanovic / Mario Negre (2016)
The Current Column, 23. February 2016
High levels of income inequality are associated with lower future growth rates for the poor and the middle class. No such negative correlation is found to hold for the rich, if anything, higher inequality is found to help their future growth prospects. In other words, highly unequal societies are found to stimulate the type of economic growth that further enhances inequality, at least in the United States for the time period under consideration.
