Friday, September 23, 2011

IMF: Income Inequality Bad for Economic Growth

Well duh! In an economy driven 70% by consumption DEMAND is the ONLY "Job Creator" and income inequality means consumers cannot create demand. That's intuitively obvious, but here is a scholarly study based imperical evidence from the international monetary fund:

EXCERPT: The widening gap between the wealthy and everyone else in the United States may be hindering a broader economic recovery, according to a new study.

The study out of the International Monetary Fund found that greater income equality positively correlates with stronger economic growth. Released in September, the study more specifically concluded that a 10 percent decrease in inequality increased the expected duration of economic growth by 50 percent.

The IMF paper, which studied a sample of countries around the world between 1950 and 2006, found that in countries with more income inequality, such as Jordan and Cameroon, the economy more frequently plunged into deeper recessions, while economic growth lasted much longer in more equal societies.

Indeed, greater levels of income equality corresponded more strongly to sustained economic growth than other economic factors, including lower debt levels, according to the report. "Sustainable economic reform," the authors write, "is possible only when its benefits are widely shared." The United States

Income inequality has grown in the United States over the past four decades and now more closely compares to the income distributions of Russia and Iran than many other developed economies.


Nemo said...

Boloney. And it's "Empirical evidence" (not imperical evidence, ya dink).

Sean Cranley said...

Tilting at typos again Nemo?

Well it's all you've got I guess.

You certainly never have any "evidence" to bring to bear in support of your mindless Cult of Con dogmatic pronouncements, like "boloney".

You're trollish yammerings are a waste of your time and mine. Take off.

Nemo said...

No evidence? This from the man-boy whose "evidence" comes from seemingly drunk leftists? Their (your)"Tax and Spend" ideas have been tried and have epically failed. You know it, I know it, and now more and more Americans know it. Did you see the latest from a Democratic pollster?

"Take off"? Planning a move to Canada and incorporating the local vernacular in your comments you hoser? I'll admit that it has more charm than the "classic" cranley (GFYS, F off, and the like) tag lines. Definitely classier. Break out the flannel tux, Canadian cranley has arrived! Heh.

Sean Cranley said...

Gross feebleness is evident in your attempt. Polls are not evidence they are snapshots of opinion.

You are a waste of time and THAT is my considered opinion, the truth of which is self evident.

Bye now.

Nemo said...

You are correct on the polls, they are like a snapshot in time of public sentiment. The Democrats have been given a number of pictures now that show their train speeding toward a cliff. And the bridge is out. Your (their) answer is to increase velocity because things like gravity, momentum and market forces don't apply when God is on your side. Twenty Ten was an earthquake. Twenty Twelve will show that more can be lost in the subsequent tsunami.

Sean Cranley said...


Nemo said...

Evidence: A thing or things helpful in forming a conclusion or judgment. See 7:28 link.

I see this morning that President Zero is calling America "soft". Twenty Twelve is gonna be a great year! Heh.