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There might be other factor affecting both inequality and economic growth. For example, consider culture, natural resources, climate, etc. If you can't find a p
by solomatov 11y ago
There might be other factor affecting both inequality and economic growth. For example, consider culture, natural resources, climate, etc. If you can't find a plausible way to explain something (inequality causes lower economic growth), it doesn't mean that there's no other way to explain it. Actually, the history of science shows that explanation of effects might be very surprising.
P.S. My comment doesn't support one side or the other. I am just pointing to a logical mistake.
- lisper 11y ago> If you can't find a plausible way to explain something (inequality causes lower economic growth), it doesn't mean that there's no other way to explain it. Actually, the history of science shows that explanation of effects might be very surprising. Indeed so. But the central principle of science is that at any time you (tentatively) accept the best available theory that is consistent with the evidence. Right now, AFAICT, that's the theory that concentrating wealth in a small minority reduces growth because it reduces demand.